Buyers following these four tips will have an easier time in this market.
Imagine finding the perfect house that checks off most of the boxes on your must-have list, but just as you are ready to purchase, you find a bidding war standing between you and your dream home.
That’s the hallmark of today’s hot market. Competition is expected to be even tougher this year due to low inventory and rising rates. If you aren’t ready, your dream home can easily be snatched out of your hands. Make sure your offer wins the bidding war with these tips for crafting the perfect offer:
1. Get pre-approved for a loan. Do this before you start home shopping. Getting pre-approved by a local reputable lender before you make an offer puts you in a position to act quickly. It’s also important to understand what type of loan you qualify for. With a pre-approval letter in hand, you’ll show sellers that you are serious, and you can also be more confident in your home search.
“Competition is expected to be even tougher this year.”
2. Consider homes under your pre-approval amount. You should expect a bidding war. If you look at properties below your top range, you will have the room to make a competitive offer beyond the asking price.
3. Act fast. In this fast-paced market, if you love the home, you have to act fast or risk losing it to another buyer. Do thorough research quickly and make an offer the same day.
4. Strategize with your agent. Talk about competitive strategies such as appraisal gaps, higher earnest money, escalation clauses, or waiving contingencies. It’s not always about the price when buying a home in a competitive market like this one. Hiring a seasoned Realtor who can help guide you and make a strong and attractive offer is extremely important.
If you have any questions, don’t hesitate to reach out to me by phone or email. I look forward to hearing from you.