In todayâ€™s sellersâ€™ market, standing out as a buyer is critical. Multi-offer scenarios and bidding wars are the norm due to the low supply of houses for sale and high buyerÂ demand. If youâ€™re buying this fall, youâ€™ll want every advantage, especially when youâ€™ve found the home of your dreams.
Below are five things to keep in mind when itâ€™s time to make an offer.
Knowing your budget and 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 you can get pre-approved for a loan. As Freddie Mac puts it:
â€œThis pre-approval allows you to look for a home with greater confidence and demonstrates to the seller that you are a serious buyer.â€
Showing sellers youâ€™re serious can give you a competitive edge. It enables you to act quickly when youâ€™ve found your perfect home.
Speed and the pace of sales are contributing factors to todayâ€™s competitive housing market. According to the latestÂ Existing Home Sales Report from theÂ National Association of RealtorsÂ (NAR), the average home is on the market for justÂ 17 days. As the report notes:
â€œEighty-nine percent of homes sold in July 2021 were on the market for less than a month.â€
When homes are selling fast, staying on top of the market and moving quickly are key. After youâ€™ve worked with your agent to find the home that suits your needs, theyâ€™ll help you put together and submit your best offer as soon as possible.
No matter what the housing market looks like, rely on a trusted real estate advisor. As Freddie Mac says:
â€œThe 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.â€
Agents are experts in the local real estate market. They have insight into whatâ€™s worked for other buyers in your area and what sellers may be looking for in an offer. It may seem simple, but catering to what a seller may need can help your offer stand out.
In the past, offering at or near theÂ asking priceÂ was enough to make your offer appealing to sellers. In todayâ€™s market, thatâ€™s often not the case.Â According toÂ the latest Realtors Confidence Index from NAR, 50% of offers are above the list price.
In such a competitive market, emotions and prices can run high. Having an agent to help craft a strong, fair offer is critical in these situations. Your agent can help you understand:
The market value of the home
Recent sales trends in the area
Current buyer demand
When crafting an offer, youâ€™ll want to keep both your best interest and the interest of the seller in mind. Your trusted real estate advisor will help you consider which levers you could pull, including contract contingencies (conditions you set that the seller must meet for the purchase to be finalized). Of course, there are certain contingencies you donâ€™t want to give up, like the home inspection.
Freddie Mac explains:
â€œResist the temptation to waive the inspection contingency, especially in a hot market or if the home is being sold â€˜as-isâ€™, which means the seller wonâ€™t pay for repairs. Without an inspection contingency, you could be stuck with a contract on a house you canâ€™t afford to fix.â€
Todayâ€™s competitive housing market makes it more important than ever to make a strong offer on a home. Letâ€™s connect to make sure your offer rises to the top.