Thinking of buying a home soon? If so, you should know that the current market is very competitive in many areas, as the number of homes for sale is still low and this results in many offer scenarios. It is expected to rise further due to the peak home buying season this spring.
To make the best deal, keep these four tips in mind:
1. Work with a real estate agent
Trust your agent to support your goals. According to PODS:
“Making an offer on a home without an agent is certainly possible, but having a pro by your side gives you a massive advantage in figuring out what to offer on a house.”
Agents are local market experts. They know what has worked for other buyers in your area and what sellers are looking for. This tip can have a big impact when deciding which offer to put on the table.
2. Understand your budget
These days, it’s even more important to know your phone number. The best way to understand your budget is to work with a lender to get pre-approved for a home loan. This will help you feel more financially confident and show the seller that you are serious. This gives you a competitive advantage. Investopedia says:
“. . . sellers have an advantage because of intense buyer demand and a limited number of homes for sale; they may be less likely to consider offers without pre-approval letters.”
3. Make a strong but fair offer
It’s natural to want to get the best price for your home, especially if availability is limited. However, bidding too low comes with risks. You don’t want to make a throwaway offer right after you get it, just to make sure it sticks. Realtor.com explains:
“. . . an offer price that’s significantly lower than the listing price, is often rejected by sellers who feel insulted . . . Most listing agents try to get their sellers to at least enter negotiations with buyers, to counteroffer with a number a little closer to the list price. However, if a seller is offended by a buyer or isn’t taking the buyer seriously, there’s not much you, or the real estate agent, can do.”
The experience your agent brings to this part of the process will help you be competitive and find a price that’s right for you and the seller.
4. Trust your agent when negotiating
After submitting an offer, the seller may decide to counter it. When negotiating, it is wise to understand what is important to the seller. You can then make your offer more attractive by allowing as much flexibility as possible regarding things like your move-in date and the condition of your home.
Your real estate agent is your partner in navigating these details. Trust a professional who can guide you through the negotiation process and help you decide on the best plan. An article from the National Association of Realtors (NAR) explains:
“There are many factors up for discussion in any real estate transaction—from price to repairs to possession date. A real estate professional who’s representing you will look at the transaction from your perspective, helping you negotiate a purchase agreement that meets your needs . . .”