Standing out as a buyer is critical in today’s sellers’ market. Multi-offer situations and bidding wars are the new normal, due to low inventory of homes for sale and very high buyer demand.
As a buyer during this fall season, if you’ve found the home of your dreams, you’ll want every advantage. The following are five things to have in your hip pocket when it’s time to make an offer.
1. Know your budget. Being mindful of 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 that pre-approval for a loan is already complete once your search begins.
Experts say that pre-approval gives way to a buyer’s greater confidence and equally important, demonstrates to the seller a serious intent to buy – which offers a competitive edge. Pre-approval enables a buyer to act quickly when they’ve found their perfect home.
This list of top lenders, published by money.com, can be helpful when looking at lenders to work with.
2. Be prepared to move fast. According to top real estate sources, the average home is on the market only 17 days. In July 202, the vast majority of homes were on the market for less than a month.
There is no time like the present to have an experienced, expert Realtor by your side, as staying on top of the market and moving quickly are essential like never before. Once you’ve worked with your agent to find your dream home, their help with crafting and submitting your best offer can happen as soon as possible.
3. Your Realtor can lead you to victory. Again, the company you keep throughout this process is critical to your success. Your trusted agent helps to make informed decisions and avoid pitfalls based on their expert experience in this field.
They especially know how to uniquely cater to a seller who is looking at multiple offers and, how to make yours stand out.
4. Craft a strong, fair offer. In today’s competitive market, 50% of offers on homes are above the list price, so both price and emotions can run high at the time an offer is made.
At the right time, your trusted agent can help you understand the following so that a strong, fair offer is made:
- The market value of the home
- Recent sales trends in the area
- Current buyer demand
5. Understand the Seller’s needs, but resist waiving certain contingencies. Here is where your trusted agent will help you understand which levers are safe to pull if and when a negotiation takes place.
Certain contract contract contingencies may well suit both buyer and seller, and others are conditions are not recommended, per real estate experts.
In particular, Freddie Mac explains the following:
“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.”
The bottom line is that today’s red-hot market makes it more important than ever to make a strong offer on the home of your dreams.
Make the experience an extraordinary one by connecting with an experienced group like the Dennis Hartley Team, and ideally look forward to your offer rising to the top.