- Understand your budget: By knowing your numbers and understanding your budget is essential to knowing how much you can afford to spend. You have the great opportunity to connect with a Primco Mortgage lender in-house at Seven Gables Real Estate. Pre-approval for a loan early in the process will help ensure your home buying success. By taking this step, you are showing the seller that you are a serious and qualified buyer which will give you a competitive edge in a bidding war.
- Brace yourself to move quickly: The real estate market is hot, so as a buyer you must be dynamic and prepare yourself for the fast-paced environment. According to the Realtors Confidence Index from the National Association of Realtors (NAR), the average home is on the market for just 17 days – that means from start to finish, a house for sale in today’s climate is active for roughly 2.5 weeks. A Seven Gables Advisor will help you find the home that fits your lifestyle and will make sure you submit the best possible offer, in a timely manner.
- Lean on your trusted Seven Gables Advisor: The homebuying process will be a fast-paced whirlwind, but it is important to lean on your real estate agent to guide you. Your agent will help you from becoming overwhelmed and will give you an advantage over your competition. An agent will help you make your offer as enticing as possible to the seller. An example of this would be your ability to quickly close or make an offer that is not contingent on the sale of your current home. By catering to what the seller wants, you will be able to stand out in the potential bidding war.
- Make a strong offer: In today’s market, it is increasingly more difficult to make an appealing offer to the sellers. For every listing there are 5.1 offers and half of the homes are being sold above list price. In such a competitive market, emotions and prices have the potential to run high. Use an advisor to make your strongest offer given the market value, recent sales, and demand.
- Be a flexible negotiator: Given the climate of this seller’s market, it is important to remember that the seller will most likely counter with their own changes. You should be prepared to amend your offer to include flexible move-in dates, a higher price for the home, or minimal contingencies. A contingency is described as the conditions you set that the seller must meet for the purchase to be finalized. Freddie Mac gives one example of a contingency you don‘t want to remove: “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.”
Bottom Line
A good rule of thumb is to take into consideration what the seller may need during this process. Connect with a Seven Gables Advisor to help you navigate this tricky market and to ensure you are putting out your best possible offer to prioritize your long term financial success.
