Today’s housing market is definitely a seller’s market and buyers have big competition. Bidding wars are the norm because of low housing inventory and great mortgage rates. Buyers need to find a way to stand out. Here are five tips to follow when making an offer on a home.
1. Know Your Budget
Every potential home buyer must know their budget. Before you began your home search, you need to know how much you can afford. Getting pre-approved is a great way to accomplish this.
“This pre-approval allows you to look for a home with greater confidence and demonstrates to the seller that you are a serious buyer,” Freddie Mac.
Sellers will always pick the most reliable and best offer. Having a pre-approval can step up your game on getting your offer accepted.
2. Be Prepared To Move Fast
“Let me think on it overnight” is not acceptable anymore. In fact, a fast closing is now becoming a must. Speed and the pace of the sales are also fueling the current housing market. The National Association of Realtors Existing Home Sale Report reveals that the average home on the market is a short 17 days.
“Eighty-nine percent of homes sold in July 2021 were on the market for less than a month,” according to the Existing Home Sale Report.
3. A Real Estate Professional Can Lead You to Victory
A local Realtor is the best way possible to go when it comes to buying a home. A Realtor is on your side and will get you what you want for the best possible price.
“The success of your homebuying journey largely depends on the company you keep. . . . be sure to select experienced, trusted professionals who will help you make informed decisions and avoid any pitfalls,” says Freddie Mac.
Local Realtors are experts in the local market and can help you with your search. Realtors can help you with your offer to make sure it appeals to the seller and stands out among the multiple offers they have received.
4. Craft a Strong, Fair Offer
Once again, a Realtor is your best bet to put in the best offer. The current market is seeing a strong offer as not just offering the asking price. According to Realtors Confidence Index from NAR half, the offers in the current market are above the listing price. A
A Realtor can help you make a smart offer without emotional attachment. They can help you with the market value of a home, recent sales trends in the area you are interested and the current buyer demand.
5. Understand the Seller’s Needs, but Resist Waiving Certain Contingencies
Yes, your offer has to be attractive to the seller, but it also needs to keep the buyer’s best interest in mind. A Realtor can help you keep both your interest and the seller’s interest in mind. A Realtor can determine what you can include and what you can remove. Examples are a home inspection which should never be given up.
“Resist the temptation to waive the inspection contingency, especially in a hot market or if the home is being sold ‘as-is’, which means the seller won’t pay for repairs. Without an inspection contingency, you could be stuck with a contract on a house you can’t afford to fix,” explains Freddie Mac.
Take in these five steps to improve your chances of your offer being accepted. Remember to always use a Realtor who can help you with presenting the best possible offer.