Feel like you can’t blink in today’s real estate market? These tips will help get your offer accepted in a hot market.
The housing market is HOT. Summertime is typically the listing season when many people are putting their homes on the market. Low mortgage interest rates and extra savings have many looking to make a move. Add to that, historically low home inventory is driving fierce pricing competition right now.
What does this all mean? That the purchase process is a little more intense for would-be homebuyers.
If you are looking to buy a home in this hot market, you must stand out to the sellers. But how? Our real estate experts at True Concept Title provide this list of six tips that will keep your offer competitive.
You must have a strong opening offer. In a competitive market, a low offer is not welcome.
Everyone wants to get the best possible deal, but make sure you don’t lose your “dream home” over a couple of thousand dollars. If your offer is too low, you may offend the sellers, and if you lowball them, the sellers may not even counter back.
If you know or suspect you are not the only buyers making an offer on a home, you need to start with a substantial initial offer. We suggest working with a top-rated real estate agent to help you know what’s fair for the property.
When you present your offer, it should be the best proposal you can make. You do not want to give the seller any reason to reject your bid, especially if you were not prepared or the offer was incomplete.
Make your offer as “clean” as you can. A seller with multiple offers will be more interested in a submission that is complete and free of contingencies. Cash offers will put you ahead of the competition, but we know not everyone can afford that. If you need to finance the home, you can offer to put more money down or pay the closing fees.
Use a Professional Real Estate Agent
When the housing market is intense and homes go under contract in hours or days, you need to hire a professional real estate agent with knowledge of the area.
It is worth the money to hire a professional when you are facing a multi-offer situation. A knowledgeable real estate agent will know if the homes you are looking at are priced above or below the asking price and help you make a persuasive, competitive offer.
Understanding the Seller’s Needs
It’s better to go into an offer with understanding and empathy with the sellers and their needs. If you know what the seller’s motivations are and what they want, you can put together an attractive offer.
If you know what may motivate the seller, you can build a relationship with them that sets you and your offer apart.
- Are they motivated by price and closing costs?
- Do they want a quick close because they have purchased another home?
- Are they considering renting back and staying longer?
- Do they envision a young family growing up in their home as they once did?
If you know what the sellers are after, you can work with them to create an offer that you both can’t wait to close on.
Avoid a Bidding War
When that dream home is caught in a multi-offer situation, it is easy to get into a bidding war. But be careful — no one wants to have buyer’s remorse in an overpriced home.
If you hired a local real estate professional, they could help guide you through the process with unbiased advice. They also can walk you through a potential bidding war or find another dream home that is a better value.
As you start looking at homes and making offers stay positive! Remember, the market is hot and you may lose some to win “the one.” It is usual for buyers to lose a couple of homes before they get an acceptance.
Close with True Concept Title
True Concept Title provides lenders and Realtors with the information they need to stay on top of real estate market trends. We are a one-stop-shop for your title and closing needs.
Call us today at (813) 263-7168 to see how our team can help you close on your home in today’s competitive market.