Lisa Mailhot | July 26, 2023
While the days of the 'unicorn' housing market are behind us, the current real estate landscape remains competitive due to limited housing supply. If you're planning to purchase a home during this season, you may encounter multiple-offer situations, though the extreme bidding wars have eased.
Here are some key factors to take into account in order to present your strongest offer when making a bid on a home.
Count on a qualified agent who can back your objectives and provide insights into the current real estate market. Agents possess extensive knowledge of local and national trends, utilizing this expertise to equip them with the necessary information for a confident decision-making process.
Furthermore, they are well-versed in successful approaches taken by other buyers in your area and are aware of what sellers seek in an offer. Attending to the seller's requirements might appear straightforward, but it can significantly enhance the appeal of your offer. As stated in a Forbes article:
"Getting to know a local realtor where you’re hoping to buy can also potentially give you a crucial edge in a tight housing market."
In the face of present affordability challenges, having a well-defined budget is crucial. To gain a comprehensive understanding of your borrowing capacity, collaborating with a lender and obtaining pre-approval for a home loan is the best approach.
This process not only boosts your financial assurance by providing a clearer picture of your numbers but also signals to sellers that you are committed to the purchase. This can grant you a competitive advantage, particularly in situations with multiple offers.
Desiring the most favorable deal on a home is entirely understandable. Yet, there are certain risks associated with presenting an excessively low offer. Avoid submitting an offer that may be promptly dismissed simply to test its acceptance. As clarified by Realtor.com:
“. . . an offer price that’s significantly lower than the listing price, is often rejected by sellers who feel insulted . . . Most listing agents try to get their sellers to at least enter negotiations with buyers, to counteroffer with a number a little closer to the list price. However, if a seller is offended by a buyer or isn’t taking the buyer seriously, there’s not much you, or the real estate agent, can do.”
The proficiency your agent contributes to this stage will keep you competitive and assist in determining a price that is equitable for both you and the seller.
In the era of the housing market's 'unicorn' years, certain buyers forwent home inspections and neglected to request concessions from sellers to secure a winning bid on a property. However, as stated in a Bankrate article, this occurrence is less frequent in the present, which is positive news:
“While the market has largely calmed down since then, sellers are still very much in the driver’s seat in this era of scarce housing inventory. It’s not as common for buyers to waive inspections anymore, but it does still happen. . . . It’s in the buyer’s best interest to have a home inspected . . . Inspections alert you to existing or potential problems with the home, giving you not just an early heads up but also a useful negotiating tactic.”
Luckily, the current market offers a distinct scenario, providing you with increased negotiating leverage compared to the past. As you craft your offer, your dependable real estate advisor will guide you in discerning which strategies to employ and which aspects you should stand firm on.
If you are considering buying a home this summer, don't hesitate to reach out and connect with our team of experts. We are here to provide full support throughout the entire process and assist you in presenting the most compelling offer possible. Your dream home awaits, and we're ready to help you make it a reality.
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