The Key To Making a Winning Offer on a Home
Today’s homebuyers are faced with a strong sellers’ market, meaning there are a lot of buyers competing for a low number of available homes.
As a result, it’s important to understand how to make a competitive offer on your perfect home.
Here are five tips for success in this critical stage of the homebuying process.
1. Understand Your Financial Situation
Having a complete understanding of your budget and how much house you can afford is imperative. The best way to go about this is to 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, so be sure to take this step so you stand out from the crowd.
2. Listen to Your Real Estate Advisor
Freddie Mac gives direction on making an offer on a home in a recent article. It emphasizes how trusted professionals can help you stay focused on the most important things, especially at times when this process can get emotional for buyers:
“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.”
A real estate professional should be the expert guide you lean on for advice when you’re ready to make an offer.
3. Move Quickly
According to the latest Realtors Confidence Index from the National Association of Realtors (NAR), the average property receives 3.7 offers and is on the market for just 21 days. These are results of today’s competitive market, showing how important it is to stay alert in your search. As soon as you find the right home, be prepared to submit an offer as quickly as possible.
4. Make a Fair Offer
It’s only natural to want the best deal you can get on a home. However, submitting an offer that’s too low can lead sellers to doubt how serious you are as a buyer. Don’t make an offer that will be tossed out as soon as it’s received. The expertise your agent brings to this part of the process will help you stay competitive.
5. Be Flexible
After submitting an offer, the seller can accept it, reject it, or counter it with their own changes. In a competitive market, it’s important to stay nimble throughout the negotiation process. You can strengthen your position with an offer that includes flexible move-in dates, a higher price, or minimal contingencies (conditions you set that the seller must meet for the purchase to be finalized). There are, however, certain contingencies you don’t want to forego such as an inspection. Without an inspection contingency, you could be stuck with a contract on a house you can’t afford to fix.
What This Means For You
Today’s competitive market makes it more important than ever to make a strong offer on a home. Let’s connect to make sure you rise to the top along the way.