How To Be the Winning Bid In Today’s Market

March 19, 2021

We are in one of the strongest Seller’s Markets in history.  If you’ve been looking at buying a home or if it’s in your near future, which it should be, then you need to read and reread this article.  Here we will give you five simple steps to make sure that you’re able to buy that home that you’ve been dreaming about.

Because of the market that we’re in, there are fewer homes available than during a normal market or during a Buyer’s Market.  Furthermore, due to this, if is extremely important to have a handle on how to make a strong, competitive offer on your dream home.

Below are the five tips you need to succeed with your offer.

Tip # 1 Listen to your Realtor!

It is your agent’s job to study and know the markets that they work in.  More importantly, your agent can help you stay focused on the transaction just as things are getting emotional for you.  They are ethically bound to put your needs ahead of theirs.

According to an article from Freddie Mac: “Remember to let your homebuying team guide you on your journey, not your emotions.  Their support and expertise will keep you from compromising your must-haves and future financial stability.”

When you think you’ve found the right house, consult with your agent.  Have them run comparables and follow their advice when submitting the offer.

Tip #2  Know your finances!

Understanding your budget will let you know just how much house you can comfortably afford.  What is the best way to do this?  Get pre-approved for a mortgage BEFORE you even start looking.  Presenting an offer with a pre-approval shows the seller that you are serious and that you have a lending institution behind you that will lend you the money to buy the house.  If you don’t have a pre-approval, you’ve lost your competitive edge in any bidding war.

Tip #3 Don’t dilly-dally!

As silly as this sounds, it’s the truth.  According to the National Association of Realtors (NAR), the average home that sells in today’s market will receive 3.7 offers!  Not only that, but the average time on the market is 21 days.  This is because of the competitive market that we’re in.  It is also why need to be quick when new homes come on the market.  Be prepared to see them right away and get ready to submit an offer.

Tip #4 Make a strong offer, be informed!

Everyone wants a great deal, and with the equity that you’ll earn, you’ll get one.  But, if you try to lowball an offer, the seller will doubt your motivation and consider other offers.  This is where your agent can really shine.  By helping you understand how much similar homes have sold for recently, then you’ll be able to calculate market value due to the market.

Tip #5 Be flexible!

Once you’ve submitted your offer, serval things can happen.  The seller can accept, reject or counter it.  Because you are likely to be competing with other buyers, you need to stay flexible.  If you can make your offer appear stronger by changing the closing date or removing some contingencies (these are conditions either party must meet in order to execute the contract.)

Here’s the bottom line, in this very competitive market, it’s more important than ever to make your offer as strong as you can!

If you’re ready to start looking at homes, contact me today! Let me help you find your dream home.

All opinions, information and data provided is deemed reliable but is subject to errors and omissions. Not intended to solicit other Brokers’ clients. We cooperate with them fully.