With a limited number of homes for sale today and so many buyers looking to make a purchase before mortgage rates rise further, bidding wars are common. According to the latest report from the National
Association of Realtors (NAR), nationwide, homes are getting
an average of 4.8 offers per sale. Here's a look at how that breaks down
state-by-state (see map
The same report from
NAR shows the average buyer made two offers before getting their third offer
accepted. In this type of competitive housing market, it's important to
know what levers you can pull to help you beat the competition. While a real
estate professional is your ultimate guide to presenting a strong offer, here
are a few things you could consider.
Offering over Asking Price
When you think of
sweetening the deal for sellers, the first thought you likely have is around
the price of the home. In today's housing market, it's true more homes are
selling for over asking price because there
are more buyers than there are homes for sale. You just want to make sure your
offer is still within your budget and realistic for the market value in your
area – that's where a local real estate professional can help you through the
put, being willing to pay more money than other buyers is one of the best ways
to get your offer accepted. You may not have
to increase it by a lot — it'll depend on the area and other factors — so look
to your real estate agent for guidance.
Putting Down a Bigger Earnest Money Deposit
You could also
consider putting down a larger deposit up front. An earnest money deposit is a check you
write to go along with your offer. If your offer is accepted, this deposit is
credited toward your home purchase. NerdWalletexplains how it works:
A typical earnest money
deposit is 1% to 2% of the home's purchase price, but the amount varies by
location. A higher earnest money deposit may catch a seller's attention in
a hot housing market.
That's because it
shows the seller you're seriously interested in their house and have already
set aside money that you're ready to put toward the purchase. Talk to a
professional to see if this is something you can do in your area.
Making a Higher Down Payment
option is increasing how much of a down payment you're
going to make. The benefit of a higher down payment is
you won't have to finance as much. This helps the seller feel like there's less
risk of the deal or the financing falling through. And if other buyers put less
down, it could be what helps your offer stand out from the crowd.
Non-Financial Options To Make a Strong Offer
Realtor.compoints out that while
increasing these financial portions of the deal can help, they're not your only
. . . Price is not the only
factor sellers weigh when they look at offers. The buyer's terms and
contingencies are also taken into account, as well as pre-approval letters,
appraisal requirements, and the closing time the buyer is asking for.
When it's time to make
an offer, partner with a trusted professional. They have insight into what
sellers are looking for in your local market and can give you expert advice on
what levers you may or may not want to pull when it's time to write an offer.
From a non-financial perspective,
this can include things like flexible move-in dates or minimal contingencies
(conditions you set that the seller must meet for the purchase to be
finalized). For example, you could make an offer that's not contingent on the
sale of your current home. Just remember, there are certain contingencies you don't want to
forego, like your home inspection. Ultimately, the
options you have can vary state-to-state, so it's best to lean on an expert
real estate professional for guidance.
In today's hot
housing market, you need a partner who can serve as your guide, especially when
it comes to making a strong offer. Let's connect so you have a trusted resource
and coach on how to make the strongest offer possible for your specific
situation. Contact me
at (904) 274-1692 to get started.