How To Win ~
Today’s homebuyers face a strong sellers’ market. This means many active buyers compete for a relatively low number of available homes. As a result, it’s essential to understand how to make a confident and competitive offer on your dream home. Here are five tips for success in this critical stage of the homebuying process.
1. Listen to Your Real Estate Advisor
I found this article from Freddie Mac gives direction on making an offer on a home. I recommend knowing your numbers.
- Start with a Price-Driven approach. What did the home sell for in the area and your sub?
- Know the Market You’re In – I have available your 3-year live trends on price range and month supply on the market. This will give a trend #2.
- Trend #3 in using your Value-Driven Approach. Looking at the property through the eyes of an appraiser.
“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.”
Make sure you found the right real estate professional to help guide you. To succeed, know your numbers!
2. Understand Your Finances
Having a complete understanding of your budget and how much house you can afford is essential. The best way to know 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. Make sure you have a full underwriter approval letter; your offer is stronger. Equally important and most overlooked is a Mortgage Company reputation. Make sure to take these steps so you stand out from the crowd. Doing so makes it clear to sellers you’re a serious and qualified buyer. It will give you a competitive edge in a bidding war.
3. Be Prepared to Move Quickly
According to the latest Realtors Confidence Index from the National Association of Realtors (NAR), the average property sold today receives 3.7 offers. Depending on the price range, it could be gone tomorrow. The average time on the market varies by location and price range. Most homes are gone in less than 21 days. It shows how important it is to stay agile and alert in your search. As soon as you find the right home for your needs, 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, Freddie Mac also warns that submitting an offer that’s too low can lead sellers to doubt how serious you are as a buyer. Please 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: Ask yourself how you will feel if you lose this house for X dollars.
5. Stay Flexible in Negotiations
After submitting an offer, the seller may 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). Freddie Mac explains that there are, however, certain contingencies you don’t want to forego:
“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.”
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.
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