If youโre thinking of buying a home today, you already know that the number of homes available for sale is low. But what does that really mean for you? As a buyer, low housing supply coupled with high buyer demand means you should be prepared to navigate a highly competitive market where homes sell fast and get multiple offers. Realtor.com has this to say:
โHomes also flew off the market at record pace as buyers put offers in the moment properties came up for saleโฆ.โ
In a bidding war situation like this, doing everything you can to get ahead of the competition is a wise move. Thatโs because when you find a house and submit an offer, itโll likely be up against strong offers from other buyers. According to the latest Realtors Confidence Index from the National Association of Realtors (NAR), homes today are receiving an average of 3.9 offers. Thatโs the most offers weโve seen in January for the last 5 years (see graph below):
To help you navigate bidding wars with multiple offers, an expert real estate advisor is key. They know whatโs worked for other buyers, what sellers are looking for, and how to help you prepare when it comes time to make an offer. Here are three tips to keep in mind that will help you make the best offer possible.
1. Know Your Numbersโ
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 get pre-approved for a loan. Pre-approval shows sellers youโre serious, which can give you a competitive edge. You should also know making an offer at the homeโs asking price may not beย enough.ย Homes today often sell for more than their listing price. An agent can help you understand the market value of the home and what other homes are selling for in your area.
2. Be Ready To Move Fastโ
Speed and the pace of sales are contributing factors to todayโs competitive housing market. When homes are selling fast, itโs important to stay on top of the market and be ready to move quickly. Your agent will help you stay up to date on the latest listings and help you put together your best offer as soon as you find the home you want to buy.โ
3. Make a Strong but Fair Offerโ
โWhen youโre up against other offers, putting your best offer forward from the start is key. Lean on your agent to write a strong offer and use their expertise on which levers you can pull to make your offer as enticing as possible. One option is to wave some of your contract contingenciesย (conditions you set that the seller must meet for the purchase to beย finalized). Just remember there are certain contingencies you donโt want toย give up, like the home inspection.
โBottom Line
No matter what, your agent is your best resource for making an offer that stands out in a competitive market. Letโs connect to talk through what you can expect as a buyer and how to kick off a successful home search.
Content previously posted on Keeping Current Matters
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