In today’s sellers’ market, standing out as a buyer is critical. Multi-offer scenarios and bidding wars are the norm due to the low supply of houses for sale and high buyer demand. If you’re buying this fall, you’ll want every advantage, especially when you’ve found the home of your dreams.
Below are five things to keep in mind when it’s time to make an offer.
1. Know Your Budget
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. Showing sellers, you are serious is a necessity in our market. Having a pre-approval in advance enables you to act quickly when you’ve found your perfect home. Don't hesitate to call me for some lender recommendations!
2. Be Prepared To Move Fast
Speed and the pace of sales are contributing factors to today’s competitive housing market. According to the latest Existing Home Sales Report from the National Association of Realtors (NAR), the average home is on the market for just 17 days. As the report notes: “Eighty-nine percent of homes sold in July 2021 were on the market for less than a month.” And that's nationwide. In our area it's not unusual to see homes selling in less time.
When homes are selling fast, staying on top of the market and moving quickly are key. After we find the home that suits your needs, they’ll help you put together and submit your best offer as soon as possible.
3. A Real Estate Professional Can Lead You to Victory
No matter what the housing market looks like, rely on a trusted real estate advisor. As Freddie Mac says, “The success of your homebuying journey largely depends on the company you keep. . . . be sure to select experienced, trusted professionals who will help you make informed decisions and avoid any pitfalls.” I am an expert in our local real estate market and can help your offer stand out. I am here when you need me!
4. Craft a Strong, Fair Offer
In the past, offering at or near the asking price was enough to make your offer appealing to sellers. In today’s market, that’s often not the case. According to the latest Realtors Confidence Index from NAR, 50% of offers are above the list price. In our most recent data for the month of August from the Garden State MLS, our communities continue to average a sale price over asking price.
In such a competitive market, emotions and prices can run high. I can help craft a strong, fair offer. I can help you understand the market value of the home, recent sales trends in the area and current buyer demand.
5. Understand the Seller’s Needs, but Resist Waiving Certain Contingencies
When crafting an offer, you’ll want to keep both your best interest and the interest of the seller in mind. I will help you consider which levers you could pull, including contract contingencies (conditions you set that the seller must meet for the purchase to be finalized). Of course, there are certain contingencies you don’t want to give up, like the home inspection. We will work together with a trusted attorney to help you create an offer you are comfortable with.
Today’s competitive housing market makes it more important than ever to make a strong offer on a home. Let’s connect to make sure your offer rises to the top.