If you're thinking
of buying a home today, you
already know that the number of homes available for sale is low. But what does
that really mean for you? As a buyer, low housing supply coupled with
high buyer demand means you should be prepared to navigate a highly competitive market where homes sell
fast and get multiple offers. Realtor.com has
this to say:
Homes also flew off the market at record pace as buyers put
offers in the moment properties came up for sale….
In a bidding war
situation like this, doing everything you can to get ahead of the competition
is a wise move. That's because when you find a house and submit an offer, it'll
likely be up against strong offers from other buyers. According to the
latest Realtors Confidence Index from the National Association of Realtors (NAR),
homes today are receiving an average of 3.9 offers. That's the most offers
we've seen in January for the last 5 years (see
To help you navigate
bidding wars with multiple offers, an expert real estate advisor is key. They
know what's worked for other buyers, what sellers are looking for, and how to
help you prepare when it comes time to make an offer. Here are three tips to keep
in mind that will help you make the best offer possible.
Know Your Numbers
Knowing your budget
and what you can afford is critical to your success as a homebuyer. The best way to
understand your numbers is to work with a lender so you can get pre-approved
for a loan. Pre-approval shows sellers
you're serious, which can give you a competitive edge. You should also know
making an offer at the home's asking price may not be enough. Homes today often
sell for more than their listing price. An agent can help you understand the market
value of the home and what other homes are selling for in your area.
2. Be Ready To Move Fast
Speed and the pace of
sales are contributing factors to today's competitive housing market. When
homes are selling fast, it's important to stay on top of the market and be
ready to move quickly. Your agent will help you stay up to date on the latest
listings and help you put together your best offer as soon as you find the home
you want to buy.
3. Make a Strong but Fair Offer
When you're up
against other offers, putting your best offer forward from the start is key.
Lean on your agent to write a strong offer and use their expertise on which
levers you can pull to make your offer as enticing as possible. One option is
to wave some of your contract 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 give up, like the home inspection.
No matter what, your
agent is your best resource for making an offer that stands out in a
competitive market. Let's connect to talk through what you can expect as a
buyer and how to kick off a successful home search. Contact
me at (904) 274-1692 to get started.