If you’re thinking of buying a home today, you already know that the number of homes available for sale is low. But what does that really mean for you? As a buyer, low housing supply coupled with high buyer demand means you should be prepared to navigate a highly competitive market where homes sell fast and get multiple offers. Realtor.com has this to say:
“Homes also flew off the market at record pace as buyers put offers in the moment properties came up for sale….”
In a bidding war situation like this, doing everything you can to get ahead of the competition is a wise move. That’s because when you find a house and submit an offer, it’ll likely be up against strong offers from other buyers. According to the latest Realtors Confidence Index from the National Association of Realtors (NAR), homes today are receiving an average of 3.9 offers. That’s the most offers we’ve seen in January for the last 5 years (see graph below):
To help you navigate bidding wars with multiple offers, an expert real estate advisor is key. A Seven Gables advisor knows what has worked for other buyers, what sellers are looking for, and how to help you prepare when it comes time to make an offer. Here are three tips to keep in mind that will help you make the best offer possible.
1. Know Your Numbers
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. Pre-approval shows sellers you’re serious, which can give you a competitive edge. It also gives you a good idea of your budget. You should also know, making an offer at the home’s asking price may not be enough. Homes today often sell for more than their listing price, (you can thank historically low mortgage rates for that). One of our Seven Gables advisors can help you understand the market value of a home, and get data on what other comparable homes are selling for in your area.
2. Be Ready To Move Fast
Speed and the pace of sales are contributing factors to today’s competitive housing market. When homes are selling fast, it’s important to stay on top of the market and be ready to move quickly. Pairing with an agent allows you to strategize your best plan for home buying. Not only that, a Seven Gables advisor will keep you stay up to date on the latest listings, and help you put together your best offer as soon as you find the home you want to buy.
3. Make a Strong but Fair Offer
When you’re up against other offers, putting your best offer forward from the start is key. Lean on your agent’s expertise to write a strong offer, and to make it as enticing as possible to the seller. A few easy ways to make your offer more attractive to a seller is: including your recent pre-approval letter, providing proof of funds with your offer, or to wave some of your contractual contingencies (conditions that a buyer sets, and that the seller must meet for the purchase to be finalized). Just remember though there are certain contingencies you don’t want to give up, like the home inspection.
No matter what, your Seven Gables agent is your best resource for making an offer that stands out in today’s competitive market. Meet with a Seven Gables advisors to talk through what you can expect as a buyer, and how to kick off a successful home search, and purchasing experience.