5 Tips to Make a Competitive Offer in a Hot Market
With a high level of potential buyers and a low housing inventory, the real estate market remains super competitive in 2021. More than ever, it is crucial for buyers to know how to make a confident and competitive offer once they found the right home. Here are five keys to success to make a strong offer and stand out from other competing buyers!
Let Your Realtor Guide You
Your real estate agent is your “wingman,” especially when it comes to finding the perfect home, making an offer, and negotiating the sale. For the buyer, this is a very emotional, stressful process so it is important to let your realtor guide and advise you. Your real estate professional has years of experience and plenty of deals under their belt, so they will be your primary source when you are ready to make an offer.
Know What You Can Afford
Having a thorough understanding of your finances and how much you can afford is crucial. How do you find out? Simply reach out to a lender to get pre-approved for a loan early in the homebuying process, even before you start looking at houses. Having a house-hunting budget will also help you narrow down listings to check out with your realtor. Also, getting pre-approved shows sellers you are a serious, qualified buyer which can give you a serious edge in a competitive market.
According to the Realtors Confidence Index, published by the National Association of Realtors (NAR), the average property being sold today is receiving nearly four offers and typically sells in twenty-one days. The real estate market is indeed hot, and the need to stay agile and vigilant in your home search is crucial. As soon as you and your realtor find the right home, you should prepare and submit an offer as quickly as possible.
Be Fair with Your Offer
Of course, you will want to get a good deal on a house, but with a hot competitive market, a seller will likely throw out a low offer as soon as they receive it. This is where having the wisdom of a realtor will greatly benefit you. Your agent will help you prepare a competitive offer that takes into consideration factors like the market value of the home, the condition of the home and recent home sale prices in the area.
One of three outcomes will happen after your first offer – the seller will either accept, reject, or counter it. If the seller comes back with some changes to your offer, be flexible throughout the negotiation process. Adjusting the closing date or accepting a higher price (within your budget) can help strengthen your offer and increase your chances of getting the home. Your agent will communicate between you and the seller to reach an agreement.
Ready to hit the market to buy your next house? Start by talking to one of our experienced Loan Officers today!
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