There is no doubt that this market continues to be a strong seller’s market! Many agents continue to focus on providing resources and opinions to sellers, we agree that is very important. After all, if there are no sellers than there will be no buyers. Unfortunately, we feel many buyers are left confused and left in the dark when it comes time to putting in an offer on a home. Standing out as a potential buyer is so critical to your success. Almost every property has multiple offers and bidding wars. This will continue to be the norm as there is low supply and high demand. If you plan on buying this fall, you’ll want every advantage you can take. Especially when you’ve found the home of your dreams.
We’ve put together a little list that will help you understand our 5 tips for making your best offer.
1. Knowing Your Budget
Knowing your budget and what you can afford is and always will be the number one priority when purchasing a home. This is for a couple of reasons, the main reason being you don’t want to look at homes that are way outside of your budget. It will be de-motivating and frustrating. If you are already working with an agent and have yet to find a lender, ask your agent for some advice and if he/she has any recommendations on who would be a good fit. A pre-approval gives you the competitive edge you need when the right home comes up and they seem to go as fast as they pop up right now.
2. Be Prepared to Move Fast
We hinted at this in the last point, but it’s no secret that homes are moving quickly! Many aren’t even listed for even a week before they’re marked as sold. Nearly every home for sale is listed with an offer presentation, likely only 7 days after it’s on the market. Be prepared. Do your research. Know what our must-haves and what you can live without. This way you can make quick decisions to make sure you secure the home you want.
3. Working with a Professional
No matter what the real estate market looks like, working with a professional is a must. Licensed agents know the contracts, conditions and legal notes behind real estate. As the market moves fast, understanding this is so crucial. The last thing you want is to agree to something that you didn’t understand or know was even in the contract. Not only do agents know this, but they also know the areas very well. Which is why we recommend always working with an agent local to where you plan on moving to.
4. Craft a Strong, Fair Offer
This is the bread and butter of real estate right now. In previous years, submitting an offer that was near or at the asking price was sufficient. Unfortunately, those times have changed and we are in a position now where homes are being underpriced and offers are going for 50k-150k over asking price. The reality is, there is no fighting this. We have to embrace it and work with it. Keeping in mind your best interests, working with a professional will help you to create a balanced and fair offer for the seller.
5. Understand the seller’s needs, but resist waiving conditions
This one is the most challenging to write about. Not because it is unclear about what conditions are, but because this varies so much depending on everyone’s situation. Typically, when purchasing a home you would have conditional upon home inspection or conditional upon financing. In this extreme seller’s market, we have seen many of these conditions waived to appease the sellers. Unfortunately, when you do this you lose an opportunity to back out of the deal should something go wrong.
The Bottom Line
The real estate market is hyper competitive right now, prices are increasing rapidly and the market is changing weekly if not daily. Working with a professional who you can trust is more important than ever. At Lion Crest Real Estate we are here to help you as a buyer, to make sure your voice is heard and you know everything. If you have any questions about the current market or have considered buying a home, contact us today.