Bidding wars are common because the number of homes sold today is limited and many buyers are considering buying before mortgage rates continue to rise. According to the latest report from the National Association of Real Estate Agents (NAR), homes across the country receive an average of 4.8 properties per sale. Let’s see how State by State is categorized (see map below).
The same report from the NAR shows that the average buyer makes two offers before accepting the third offer. In this kind of competitive housing market, it’s important to know which levers you can pull to outperform the competition. Real estate professionals are the ultimate guide to presenting strong offers, but there are a few things to consider here.
Offering over Asking Price
When you think of sweetening a deal for a seller, your first idea probably revolves around the price of the home. In today’s home market, there are more buyers than sellers, so more homes are being sold at soaring prices. You just want to make sure your list is still within budget and realistic for the market value in your area-this is where local real estate professionals can help you through the process. .. Bankrate says:
“Simply put, being willing to pay more money than other buyers is one of the best ways to get your offer accepted. You may not have to increase it by a lot — it’ll depend on the area and other factors — so look to your real estate agent for guidance.”
Putting Down a Bigger Earnest Money Deposit
You can also consider paying a large deposit in advance. The deposit is the check you write in your bid. If your offer is accepted, this deposit will apply to your home purchase. NerdWallet explains how it works:
You can also consider paying a large deposit in advance. An earnest money deposit is a check you write to go along with your offer. If your offer is accepted, this deposit is credited toward your home purchase. NerdWallet explains how it works:
“A typical earnest money deposit is 1% to 2% of the home’s purchase price, but the amount varies by location. A higher earnest money deposit may catch a seller’s attention in a hot housing market.”
That`s because you’re showing the seller that you’re really interested in their home and you’ve already saved the money you’re ready to invest in your purchase. Talk to an expert to see if this is what you can do in your area.
Making a Higher Down Payment
Another option is to increase the deposits you pay. The advantage of a higher down payment is that you don’t have to raise much money. This makes sellers feel less at risk of transaction or funding failures. And if other buyers are spending less, it may help your offering stand out from the crowd.
Non-Financial Options To Make a Strong Offer
Realtor.com points out that while increasing these financial portions of the deal can help, they’re not your only options:
“. . . Price is not the only factor sellers weigh when they look at offers. The buyer’s terms and contingencies are also taken into account, as well as pre-approval letters, appraisal requirements, and the closing time the buyer is asking for.”
Please work with a trusted professional when making an offer. They have insights into what sellers are looking for in your local market and expert advice on levers you may or may not want to pull when writing an offer. Can be given.
From a non-financial point of view, this includes flexible move-in dates and minimal contingencies (conditions that the seller must meet to complete the sale). For example, you can make an offer that is not contingent on the sale of your current home. Keep in mind that there are certain contingencies you don`t want to miss: B. Inspection of your home. Ultimately, the options you have can vary from state to state, so it’s best to rely on an experienced real estate expert for advice.
In today’s hot housing market, you need a partner who can serve as your guide, especially when it comes to making a strong offer. Let’s connect so you have a trusted resource and coach on how to make the strongest offer possible for your specific situation.