When it comes to buying a house, you’re looking for the perfect place to call home. The challenge is, in today’s market there just are not that many homes available to purchase and when they do hit the market, they’re selling faster than ever. With inventory hovering near record lows and sky-high buyer demand, a multi-offer scenario is the new normal and it’s more important than ever to have the right people on your team.
Here are five things to keep in mind when you’re ready to make an offer.
1. Know Your Numbers
Having a full understanding of your budget and how much house you can afford is essential. That’s why you should connect with a lender to get pre-approved for a loan early in the homebuying process. Taking this step shows sellers you are a serious, qualified buyer and can give you a competitive edge in a bidding war. Not sure who to work with? The BP Realty team has a list of qualified, vetted and trusted lenders to refer you to.
2. Brace for a Fast Pace
Today’s real estate market is dynamic and fast-paced. According to the Realtors Confidence Index from the National Association of Realtors (NAR), the average home is on the market for just 17 days from start to finish; a house for sale in today’s market is active for roughly only two and a half weeks.
More than ever, it’s important to work with a skilled team who will do everything they can to help you stay on top of every possible opportunity. And, as soon as you find the right home for your needs, that agent will help you draft and submit your best offer as quickly as possible. Read more about Why BP Realty is YOUR Real Estate Specialist and reach out to connect.
3. Lean on a Real Estate Professional
While homebuying may seem like a whirlwind process to you, the BP Realty team does this every day, and we know what works. Our expertise can be used to give you a significant leg up on your competition. Our team will help you consider what levers you can pull that might be enticing to a seller, for example, offering flexible rent-back options to give the seller more time to move out or your ability to do a quick close or make an offer that’s not contingent on the sale of your current home. In today’s market it’s not uncommon for buyers to include personal letters with offers as well. Your agent will know if this is something sellers are willing to entertain or not, if so, it can be a deal breaker in winning the offer. All of this may seem simple, but catering to what a seller may need can help your offer stand out.
4. Make a Strong, but Fair Offer
It’s no secret, we all love a good deal. In the past, offering at or near the asking price was enough to make your offer appealing to sellers. In today’s market, that’s often not the case.
In such a competitive market, emotions and prices can run high. Use the BP Realty team as your trusted advisors to make a strong, but fair offer based on market value, recent sales, and demand.
5. Be a Flexible Negotiator
If you followed tip #3, you drafted the offer with the seller’s needs in mind. That said, the seller may still counter with their own changes. Be prepared to change your offer to include flexible move-in dates, a higher price, or minimal contingencies (conditions you set that the seller must meet for the purchase to be finalized). Just remember, there are certain contingencies you don’t want to forego. Freddie Mac explains:“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.”
When it’s time to make an offer, it’s important to consider not just what you need, but what the seller may need too. Let’s connect so you have expert advice on this step in the homebuying process to put your best offer on the table.