In today’s strong seller’s market, it is becoming increasingly more difficult for homebuyers and the process they must navigate when deciding to purchase a home. We are witnessing copious amounts of active buyers all competing for the same homes leading to bidding wars and appreciating home prices in the market. If you are interested in purchasing a home this year, it is essential that you understand the inventory shortage to ensure you are confident while making a competitive offer on your potential dream home. Let’s look at possible tips to guarantee your success when entering the journey to purchase a home.
Making a decision to purchase a home can be extremely difficult so as a buyer you have the opportunity to connect with a real estate advisor to make the process much easier. From the beginning, it is necessary to get in touch with a trusted professional to help you stay focused on the most important aspects of purchasing a home. A real estate agent will assist you in making an offer on a home while also helping to keep your emotions at bay while searching for a home. As a buyer, you will lean on your agent for advice when making an offer and they will provide you with the best possible decision to fit your lifestyle. Freddie Mac shared an article that emphasized that your trusted advisor will guide you on your journey, instead of your emotions leading the way:
“Their support and expertise will keep you from compromising on your must-haves and future financial stability.”
It is also extremely important when purchasing a home to completely understand your finances. It is essential to understand your budget to best strategize how much of a home you can truly afford. You have the opportunity as a buyer to get pre-approved for a loan early in the process. This is the best way to see what you will qualify for and this method will help you to stand out amongst the crowd of other buyers. Pre-approval will also show the sellers you are qualified and very serious, which will help your success if you encounter a bidding war.
Buyers in this seller’s market must be prepared to move quickly if they make an offer on a home. Realtors Confidence Index from the National Association of Realtors (NAR) has reported:
“The average property sold today receives 3.7 offers and is on the market for just 21 days.”
As a buyer, you must make a fair offer on a home that you are interested in, to ensure sellers know how serious you are. Your trusted advisor will help you to make a well informed offer that is based on the market value of the home and also recent sale prices in the area.
Once you have made an offer on a home, the seller may accept it, reject it, or counter it with their own negotiations. As a buyer, it is essential to stay flexible during this process to ensure your success in the long run. You will strengthen your offer to sellers by having flexible move in dates, increasing your offer price, or less contingencies.
These tips will help you to make a strong offer on a home. The first step is to reach out to a real estate agent to help streamline the process of buying a home! Reach out to a Seven Gables Advisor today to learn more about making a competitive offer in the market!