As a buyer in a sellersโ market, sometimes it can feel like youโre stuck between a rock and a hard place. When youโre ready to make an offer on a home, remember these five easy tips to help you rise above the competition.
1. Know Your Budget
Knowing your budget and what you can afford is critical to your success as a homebuyer. The best way to understand your numbers is to work with a lender so you can getย pre-approvedย for a loan. Asย Freddie Mac puts it:
โThis pre-approval allows you to look for a home withย greater confidence and demonstrates to the seller that you are a serious buyer.โ
Showing sellers youโre serious can give you a competitive edge, and it helps you act quickly when youโve found your perfect home.
2. Be Ready To Move Fast
Homes are selling quickly in todayโs competitive housing market. According to the Existing Home Sales Report from theย National Association of Realtorsย (NAR):
โEighty-three percent of homes sold in November 2021 were on the market for less than a month.โ
When houses are selling this fast, staying on top of the market and moving quickly are key. Your agent can help you put together and submit your best offer as soon as you find the home you want to buy.
3. Lean on a Real Estate Professional
No matter what the housing market looks like, rely on a trusted real estate advisor. Asย Freddie Macย also notes:
โThe success of your homebuying journey largely depends on the company you keep. . . .ย Be sure to select experienced, trusted professionals who will help you make informed decisions and avoid any pitfalls.โ
Agents are experts in the local real estate market. They have insight into whatโs worked for other buyers in your area and what sellers may be looking for in an offer. It may seem simple, but catering to what a seller needs can help your offer stand out.
4. Make a Strong, but Fair Offer
According toย the latestย Realtors Confidence Index from NAR, 40% of offers today are above the list price. In such a competitive market, emotions and prices can run high. Having an agent to help you submit a strong, yet fair offer is critical in these situations. Your agent can help you understand the market value of the home and recent sales trends in the area.
5. Be a Flexible Negotiator
When putting together an offer, your trustedย real estate advisorย will help you consider which levers you can pull, including contract contingencies (conditions you set that the seller must meet for the purchase to be finalized). Of course, there are certain contingencies you donโt want to give up. Freddie Macย explains:
โResist the temptation to waive the inspection contingency,ย especially in a hot market or if the home is being sold โas-isโ, which means the seller wonโt pay for repairs. Without an inspection contingency, you could be stuck with a contract on a house you canโt afford to fix.โ
Bottom Line
Todayโs competitive landscape makes it more important than ever to make a strong offer on a home. Letโs connect to make sure you rise to the top along the way.
Content previously posted on Keeping Current Matters
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