5 Tips for Property Buyers Who Want to Make a Competitive Offer
The real estate market can be very competitive at times. With many buyers competing for a limited number of quality homes, it’s more important than ever to know the ins and outs of making a confident and competitive home offers. Here are five important tips for this important stage in the property buying process.
How Property Buyers Can Make A Competitive Offer
- Listen to Your Real Estate Negotiator
Don’t underestimate how emotional making an offer can be for buyers and why trusted real estate professionals can help you stay focused on the most important things. So remember to let your real estate agent guide you on your journey, not your own emotions. Their support and expertise will keep you from emotion decisions and future financial stability. Your real estate professional should be your primary source for answers to the questions when you’re ready to make an offer on the property.
- Understand Your Finances & Commitments
Having a complete understanding of your property buying budget and how much you can afford is essential. The best way to know this is to reach out to your bank to get pre-approved for a loan early in the property buying process. Only 34% of today’s prospective homebuyers are planning to apply for pre-approval, so be sure to take this step so you stand out from the crowd. It shows sellers and property agents that you are a serious, qualified buyer and can give you a competitive edge if you enter a bidding war over a property.
- Be Ready to Make A Decision Quickly
The average property being sold today is receiving more than three offers and is only on the market for a few weeks. This shows how important it is to stay agile and vigilant in your property search. As soon as you find the right property for your needs, be prepared to work with your property agent to submit an offer as quickly as possible.
- Make a Realistic Offer
It’s normal to want the best deal you can get on a home. However submitting an offer that’s too low can lead sellers to doubt how serious you are as a property buyer. Don’t submit an offer that will be rejected out as soon as it’s received. The expertise that your property agent brings to this part of the process will help you stay competitive in the market. Your property 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 location.
- Be a Flexible Property Buyer
After submitting your offer, the seller may accept it, reject it, or counter it with their own home price. In a competitive market, it’s important to stay flexible throughout the whole negotiation process. Your position can be strengthened with an offer that includes flexible move-in dates, a higher price, or minimal conditions you set that the seller must meet for the purchase to be finalized. There are, however, certain contingencies you don’t want to forego. For example:
Resist the urge 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.
Today’s competitive market makes it more important than ever to make a strong offer on a property, and a trusted property expert can help you rise to the top along the journey.
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