Are you thinking about making an offer on a home?
The real estate market is more competitive than ever as buyers prioritize space and privacy, turning single-family homes into extremely hot commodities.
While compromises and quick decisions are an inevitable part of the home buying process, it can be very easy to get caught up in the excitement of it all and make some unfavorable decisions.
The pressure to act quickly can easily cloud your better judgment and you could make some decisions that you may later regret.
Working with a trusted agent who has your best interests in mind is one of the best ways to ensure you are making sound, confident, and educated decisions about your home purchase.
However, there are a few other things you can do to help yourself and your agent through the process, such as:
Being aware of how much you can spend will ensure you’re not searching for homes that are beyond your budget.
Once you’ve found the right home, you can now make an offer that is within your budget, and possibly even leave a little wiggle room for a bidding war or counter offer.
Furthermore, making an offer without a mortgage approval clause will prove to sellers that you’re a serious buyer and your offer will be much more attractive.
Recalibrate Your Offer to Match Your Location
As a home buyer, there’s nothing more deflating than being outbid over and over again.
If you’re interested in a specific area, do some research and find out how much homes in the area are being listed and sold for.
For example, if homes are continuously selling for 10% over asking price in your desired area, you may want to look for a home that is listed at 10-15% below your maximum budget. This will allow you to write a strong offer, within your budget, and beat out the competition.
Consider Waiving Contingencies
When making an offer, it is important to come in as strong as possible and an offer with little to no contingencies will always be more attractive to a seller.
While there is some risk with waiving contingencies, it can also be what wins you the home.
If you are not comfortable waiving contingencies altogether, an offer with shorter contingency periods can also help you win the bid.
You may need to have easy access to your property inspector or appraiser to make this happen, but if you’ve spoken to them in advance and advised that you’ll need their services in a short time period, you can make this work.
The days of 3-4 week contingency periods are a thing of the past, try to keep them down to a few days and your offer will be taken much more seriously.
Being as prepared as possible when making your offer will give you the best chance of winning the bid and owning your ideal home!