As a homebuyer, you might’ve found your dream home and put in an offer, but then quickly found out the seller went with another buyer. This is happening pretty often since we are currently in a strong sellers’ market, meaning there are more active buyers than there are homes available. Below we have listed four great tips to win the bidding war.
1. Understand Your Debts and Credit
Understanding the ins and outs of your budget and how much home you can afford is very important. The best way to understand this is to get pre-approved at the very beginning of your homebuying journey. Less than half of soon-to-be homebuyers apply to get pre-approved. You want to make sure you are one of them! This process will identify potential issues before you make an offer to ensure you’re shopping smart. Your pre-approval letter also shows buyers that you’re serious and qualified, which ultimately helps you stand out in a bidding war.
2. Make Sure to Submit a Fair Offer
It’s very tempting to ask for the best deal, which might be way below asking price. Freddie Mac says that submitting an offer that’s too low can make the seller ask themselves if you are a serious buyer, which you don’t want. If you want to stand out in the bidding war, don’t go way below the asking price.
3. Be Flexible During Negotiations
Once you’ve submitted your offer, the seller will come back and either accept, reject, or counter the offer with their own changes. During this competitive market, a key factor is staying flexible during the negotiation process. This is easier said than done, but you can make a strong offer by giving flexible move-in dates, little to no contingencies, or a higher price.
4. Be Prepared to Move Quickly
Realtors Confidence Index from the National Association of Realtors (NAR), says the average property sold now gets 3.7 offers and is for sale for less than a month. This means, once you find the home you want for sale, you need to jump on it as soon as possible or it will slip through your fingers.
In today’s sellers’ market, it’s very important to make the best offer possible on your future home. If you haven’t already done so, your first step should be getting pre-approved! Connect with our team today to make sure you’re starting your homebuying journey on the right foot.