How to Win in a Multiple Offer Market
The housing inventory is low, but what does that mean for you? As a buyer, low housing supply coupled with high buyer demand means you need to prepare to navigate a highly competitive market. Realtor.com said:
Homes also flew off the market at [a] record pace as buyers put offers in the moment properties came up for sale….
In a bidding war, doing everything to get ahead of the competition is a wise move. According to the latest RealtorsConfidence Index from the National Association of Realtors(NAR), homes are receiving an average of 3.9 offers. That's the most offers we've seen in January in the last five years (see graph below):
An expert real estate advisor is critical to help you navigate bidding wars with multiple offers. They know what's worked for other buyers, 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 to help 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 budget is to work with a lender to get pre-approved for a loan. Pre-approval shows sellers you're serious, giving you a competitive edge. An agent can help you understand the home's market value and what other homes are selling for in your area. Homes often sell for more than their listing price. Typically, making an offer at the home's asking price may not be enough.
2. Be Ready To Move Fast
Speed and the pace of sales contribute to the competitive housing market. When homes are selling fast, it's essential 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 the best offer.
3. Make a Strong but Fair Offer
Lean on your agent to write a strong offer. Use their expertise on which levers to pull to make your offer as enticing as possible. One option is to wave some of your contract contingencies. A contract contingency is a clause in a purchase agreement specifying an action or requirement that must be met for the contract to become legally binding. Remember, there are certain contingencies you don't want to give up, such as the home inspection.
If you're ready to face a competitive market, reach out to a real estate professional today. Your agent is your best resource for making an offer that stands out in a competitive market. Know what to expect as a buyer and get ready to kick off a successful home search.