The below post is a transcription from one of our recent videos. We have added additional information about the topic as well as additional graphics and resources. We hope you find this information helpful, and if there is a real estate topic you would like us to cover, please reach out! We love helping provide Real Estate information for the Denver metro area, which helps our real estate clients and anyone who could use the help.
If you’re a buyer in a sellers’ market, you can sometimes feel like you’re in a bind. These five easy tips will help you stand out from the competition when you’re ready to make an offer on a house.
1. Know Your Budget
Understanding your budget and what you can afford is critical if you want to succeed as a homebuyer. Working with a lender will help you know your numbers and get pre-approved for a loan. As Freddie Mac puts it:
“This pre-approval allows you to look for a home with greater confidence and demonstrates to the seller that you are a serious buyer.”
If you show sellers that you’re serious about the purchase, they’ll be more likely to accept your offer, and it helps you act quickly when you find the perfect home.
2. Be Ready To Move Fast
Today’s competitive housing market is causing homes to sell quickly. Based on the Existing Home Sales Report from the National Association of Realtors (NAR):
“Eighty-three percent of homes sold in November 2021 were on the market for less than a month.”
Staying on top of the market and acting quickly is essential when houses sell this fast. As soon as you find the home you want to buy, your agent can help you formulate and submit your best offer.
3. Lean on a Real Estate Professional
Your trusted real estate advisor will be able to help you no matter the housing market. As Freddie Mac also notes:
“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.”
Local Dever real estate agents are experts in the local market. They can give you feedback on what’s worked for other buyers in your area and what sellers might expect. It may seem simple, but tailoring your offer to the seller’s requirements can make it stand out.
4. Make a Strong, but Fair Offer
In NAR’s latest Realtors Confidence Index, 40% of offers were above the listing price. Prices and emotions can run high in such a competitive market. It would be best to have an agent to help you submit a fair and strong offer in these situations. In addition to advising you on the house’s market value, your agent can provide you with recent sales and market trends in the area.
5. Be a Flexible Negotiator
A real estate professional can help you choose which levers to use when making an offer, including contract contingencies (conditions you set for the seller to meet before finalizing the purchase). Indeed, certain contingencies are not worth giving up. Freddie Mac explains:
“Resist the temptation to waive the inspection contingency, especially in a hot market or if the home is being sold ‘as-is’, which means the seller won’t pay for repairs. Without an inspection contingency, you could be stuck with a contract on a house you can’t afford to fix.”
As the market becomes more competitive, making a good offer on a home is more essential than ever. Together, let’s ensure you reach your goal.