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. Get everything you need to know now!
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, having a true expert real estate advisor is key. They know what’s worked for other buyers, they've worked with sellers, and know what other buyers are offering and exactly 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. 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. An agent can help you understand the market value of the home and what other 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. Your agent will help 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 to write a strong offer and use their expertise on which levers you can pull to make your offer as enticing as possible. One option is to wave some of your contract contingencies (conditions you set that the seller must meet for the purchase to be finalized). Just remember there are certain contingencies you don’t want to give up, like the home inspection.
4. Do Your Research
Do your research! This is where your agent needs to go to work quickly. Ask them to find out
- How many people toured the home?
- How many offers are in on the property?
- What number are we at right now? And what is the seller looking for? and they need to be direct. While most agents won't tell you exactly what number their clients are after they might let it slip.
- What closing date the seller wants?
- What else the seller might need?
Some will give you a good idea, and sometimes they just let it slip. Agents do have to safeguard their client's info and bottom but sometimes you get someone who will talk the day away and give away information accidentally. Have your agent ask as many questions as possible so you know just what angle to come in at or if it is out of reach already. Answers to these questions will help you gauge exactly how
5. Be Ready To Get Creative
Creativity on offers MATTERS! The bottom line is the bottom line for the seller. If it's highly competitive, offer to take as much as you can in closing costs. In Nevada it's normal for the seller to pay the home warranty for the buyer, but in today's market not so much. Offer to pay the resale package or reimburse the seller for it... its $200 to $300 dollars but it shows you are working every angle. Offer to pay some closing costs of the sellers, transfer tax or prorations or other. And if you want to know more strategies, give me a call I have tons of strategies and angles to help you get the property you want, ask the questions you need to know and win in this competitive market.
Let’s connect to talk through what you can expect as a buyer and how to kick off a successful home search.
LOOKING TO SELL?
For sellers, what a great time to sell! Inventory is low and motivated buyers are looking for houses for sale. Sellers don't have competition with as many property owners. Some would be sellers have decided to wait out the pandemic, but more and more buyers enter the market. This only further pushes the pricing point higher due to tight supply. Check your home's value here! or CONTACT ME HERE FOR MORE INFORMATION!
LOOKING TO BUY?
For buyers, the inventory is slowly increasing and mortgage rates are at historic all-time lows, record-breaking never seen before lows. Buyers are out in force taking full advantage of their higher than usual purchasing power. It is a win-win scenario for both sellers and buyers. CONTACT ME HERE to get started!