A lot of active buyers are competing for a relatively low number of available homes and it is considered as a strong seller’s market with which the homebuyers are facing nowadays. An understanding of how to lay down a confident and competitive offer for your dream home is essential. These are the five tips for success in this critical stage of the homebuying process.

1. Listen to Your Real Estate Advisor

A direction in making an offer on a home is what an article from Freddie Mac gives. It begins with emphasizing how trusted professionals can help you stay focused on the most important things, most importantly, at times when this process can get emotional for buyers:

“Remember to let your homebuying team guide you on your journey, not your emotions. Their support and expertise will keep you from compromising on your must-haves and future financial stability.”

Expert guidance and the best advisor when you’re ready to make an offer is what you can get from a real estate professional.

2. Understand Your Finances

It is a must to have a complete understanding of your budget and how much house you can afford. In the home buying process, the best way to know this is to get pre-approved for a loan early. With 44% only of today’s prospective homebuyers planning to apply for pre-approval, you have to make sure that you take this step so you will stand out from the crowd. This is something that will make it clear to sellers that you’re a serious and qualified buyer plus, it can give you a competitive edge in a bidding war.

3. Be Prepared to Move Quickly

Based on the latest Realtors Confidence Index from the National Association of Realtors (NAR), the average property sold today receives 3.7 offers and is on the market for just 21 days. Both results of today’s competitive market, only indicate how important it is to stay agile and alert in your search. The moment you find the right home for your needs, be prepared to submit an offer as quickly as possible.

4. Make a Fair Offer

Everyone wants the best deal you can get on a home. But, Freddie Mac also warns that submitting an offer that’s too low can lead sellers to doubt how serious you are as a buyer. Make an offer that will not be tossed out as soon as it’s received. The key on this one is to rely on the expertise your agent brings to this part of the process will help you stay competitive:

“Your agent will work with you to make an informed offer based on the market value of the home, the condition of the home and recent home sale prices in the area.”

5. Stay Flexible in Negotiations

When you submit an offer, the seller may accept it, reject it, or counter it with their own changes. Today’s competitive market makes it important to stay nimble throughout the negotiation process. What can strengthen your position with an offer can include flexible move-in dates, a higher price, or minimal contingencies (conditions you set that the seller must meet for the purchase to be finalized). Freddie Mac explains that there are, however, certain contingencies you don’t want to forego:

“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

In today’s competitive market makes it is a must to make a strong offer on a home. Reach out to My Tampa Agent to make sure you rise to the top along the way.

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