Today’s real estate market is different than years before. With a combination of high buyer interest and low housing inventory, buyers are competing for a limited number of homes. Which means it’s now more important than ever before to know how to make a confident and competitive offer. You might be wondering; how do I make a competitive offer? Read the five tips below to find out!
1. Listen to Your Mortgage Banker
Buying a home can be very emotional, even if it’s not your first home. Listening to a trusted professional can be very important and help you stay focused on what is best for you. Freddie Mac points out:
“Remember to let your homebuying team guide you on your journey, not your emotions. Their support and expertise will keep you from compromising on your must-haves and future financial stability.”
2. Understand Your Finances
Understanding your budget and how much house you can afford is important. The best way to do this is to talk to a trusted local lender, like Apex. We also recommend that you get pre-approved for a loan early in the homebuying process. Only 44% of today’s prospective homebuyers are planning to apply for pre-approval. If you want to stand out, be sure to take this step! It shows the sellers you’re a serious, qualified buyer and can give you a competitive edge if you enter a bidding war.
3. Be Ready to Move Quickly
According to the Realtors Confidence Index, the average property being sold today is receiving more than three offers and is only on the market for a few weeks. This is the result of today’s competitive market and shows how important it is to stay agile and vigilant in your search. As soon as you find the right home for your needs, be prepared to work with a local lender.
4. Make a Fair Offer
Naturally, you’ll want the best deal you can get on a home. However, Freddie Mac also warns that submitting an offer that’s too low can lead sellers to doubt how serious you are as a buyer. Don’t submit an offer that will be thrown away. The expertise your lender brings to this part of the process will help you stay competitive.
5. Be a Flexible Negotiator
After you submit an offer, the seller may accept it, reject it, or counter with their own changes. In a competitive market, it’s important to stay nimble throughout the process. You can strengthen your offer by including flexible move-in dates, a higher price, or minimal contingencies. Although, there are some contingencies you should keep, Freddie Mac explains:
“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.”
Bottom Line
In today’s competitive market, it is now more important than ever before to make a strong offer on your dream home. While doing this you want to make sure you are in contact with a trusted lender. Connect with our team today to help you through the process.
Topics: First Time Homebuyer, homebuying tips, Competitive Offer Tips
