5 Ways to Make the Best Offer
In today's seller's market, it's vital to stand out as a buyer. Due to the low availability of houses for sale and high buyer demand, multi-offer scenarios and bidding wars are common. If you're planning to buy this fall, you'll want to take advantage of every opportunity, especially if you've located the home of your dreams.
When it's time to make an offer, keep the following five items in mind.
1. Be aware of your financial situation
Knowing your budget and what you can afford is essential for homebuying success. Working with a lender to get pre-approved for a loan is the best method to understand your figures. Freddie Mac puts it like way:
“This pre-approval gives you more confidence when looking for a home and shows the seller that you are a serious buyer.”
Showing vendors that you're serious can offer you an advantage. It allows you to act quickly once you've located the home of your dreams.
2. Be Willing To Move In today's competitive housing market, speed and sales velocity are important aspects.
According to the National Association of Realtors' (NAR) recent Existing Home Sales Report, the average home is only on the market for 17 days. As stated in the report:
“In July 2021, 89 percent of homes sold were on the market for less than a month.”
Staying on top of the market and moving promptly is essential when properties are selling quickly. After you and your realtor have worked together to identify a home that meets your criteria, they will assist you in putting together and submitting your best offer as soon as possible.
3. Working with a real estate professional can help you win.
Rely on a trusted real estate advisor regardless of the situation of the housing market. As Freddie Mac puts it,
“The company you keep will have a big impact on the success of your homebuying journey... be sure to choose experienced, trusted professionals who will help you make informed decisions and avoid any pitfalls.”
The local real estate market is well-understood by agents. They know what has worked in the past for other buyers in your region, as well as what sellers may be looking for in an offer. Although it may appear straightforward, responding to the needs of the seller will help your offer stand out.
4. Make a solid, reasonable offer
In the past, offering at or near the asking price was sufficient to entice sellers to accept your offer. That isn't always the case in today's market. According to the National Association of Realtors' newest Realtors Confidence Index, 50 percent of bids are above the list price.
Emotions and prices can run high in such a competitive environment. In these cases, having an agent to help you build a solid, fair offer is essential. Your agent can assist you in comprehending:
- The house's market worth
- In the area, recent sales trends
- Buyer demand at the moment
5. Recognize the seller's requirements, but refuse to waive some contingencies.
When drafting an offer, keep both your best interests and the seller's best interests in mind. Your professional real estate advisor can assist you in determining which levers you can use, such as contract contingencies (conditions you set that the seller must meet for the purchase to be finalized). Of course, you don't want to forego certain precautions, such as the home inspection.
Freddie Mac clarifies:
“Resist the urge to waive the inspection contingency, especially if the home is being sold ‘as-is,' which means the seller is not responsible for repairs. You could be left with a contract on a house you can't afford to fix if you don't have an inspection contingency.”
In today's competitive housing market, making a good offer on a home is more vital than ever. Let's connect to ensure that your offer is at the top of the pile.