5 Tips for Homebuyers Who Want to Make a Competitive Offer

Reblogger Anthony Acosta - ALLATLANTACONDOS.COM
Real Estate Broker/Owner with Harry Norman, REALTORS® #331379

Thank you Shayne Stone for your original blog. 

Original content by Shayne Stone 0561240

Todays real estate market has high buyer interest and low housing inventory. With so many buyers competing for a limited number of homes, its more important than ever to know the ins and outs of making a confident and competitive offer. Here are five keys to success for this important stage in the homebuying process.

1. Listen to Your Real Estate Agent

A recent article from Freddie Mac offers guidance on making an offer on a home in todays market. Right off the bat, it points out how emotional this can be for buyers and why trusted professionals can help you stay focused on the most important things:

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.

Your real estate professional should be your primary source for answers to the questions you have when you're ready to make an offer.

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 reach out to your lender to get pre-approved for a loan early in the homebuying process. Only 44% of todays prospective homebuyers are planning to apply for pre-approval, so be sure to take this step so you stand out from the crowd. It shows sellers you're a serious, qualified buyer and can give you a competitive edge if you enter a bidding war.

3. Be Ready to Move Quickly

According to the Realtors Confidence Index, published monthly by the National Association of Realtors (NAR), the average property being sold today is receiving more than three offers and is only on the market for a few weeks. These are both results of todays competitive market, showing how important it is to stay agile and vigilant in your search. As soon as you find the right home for your needs, be prepared to work with your agent to submit an offer as quickly as possible.

4. Make a Fair Offer

Its 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. Don't submit an offer that will be tossed out as soon as its received. The expertise your agent brings to this part of the process will help you stay competitive:

Your agent will work with you to make an informed offer based on the market value of the home, the condition of the home and recent home sale prices in the area.

5. Be a Flexible Negotiator

After submitting an offer, the seller may accept it, reject it, or counter it with their own changes. In a competitive market, its important to stay nimble throughout the negotiation process. Your position can be strengthened 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). There are, however, 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 wont pay for repairs. Without an inspection contingency, you could be stuck with a contract on a house you cant afford to fix.

Bottom Line

Todays competitive market makes it more important than ever to make a strong offer on a home, and a trusted expert can help you rise to the top along the way.

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Rainmaker
4,602,679
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Anthony, great choice for a reblog, Shayne did a great job.   I have a friend that has written 18 offers for one couple, and still miss out.

Jan 16, 2021 06:56 AM #1
Rainmaker
3,618,329
Kristin Johnston - REALTOR®
RE/MAX Realty Center - Waukesha, WI
Giving Back With Each Home Sold!

Great information.  Thanks for sharing and have a wonderful weekend!

Jan 16, 2021 07:14 AM #2
Rainmaker
283,147
Raymond Henson, SRES, GRI
eXp Realty of California, Inc. (lic. #01878277) - Elk Grove, CA
Realtor

Good choice sharing this one.  It has a lot of useful buyer information.

Jan 16, 2021 08:08 AM #3
Rainmaker
3,703,472
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Hello Anthony, can not go wrong with Shayne blogs and points that he always gives out.

 

Jan 16, 2021 09:22 AM #4
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Anthony Acosta - ALLATLANTACONDOS.COM

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