6 Tips for buyers who want to make a competitive offer

Buying a home has always been challenging, from navigating the market, to negotiating a deal, and nowadays there’s the added stressor of a tight market. We have record lows in inventory and growing buyer interest, so how can buyers make a competitive offer? Success in that department starts with listening to your realtor, but here are a few other tips on making a competitive offer that are sure to get you off on the right foot. 

1: Know your finances

This may seem like a really obvious one, but you’d be surprised at how many home buyers out there aren’t completely sure of what they can and cannot afford. The best way to understand your finances is to approach a lender and get pre-approved for a loan. Not only does it allow you to know exactly how much you can afford, it gives you an opportunity to make a competitive offer, especially if there’s a bidding war.

2: Be ready to move quickly

With the market as tight as it is today, houses are only on the market for a few weeks before they’re in contract and gone. Time, which was already precious, has become truly rare. This is another reason why being pre-approved by a lender will go a long way in giving you an edge. If you see a house that you’re interested in, you can make a competitive offer that day, showing the lender you’re serious.

3: Be reasonable with your offer

As tempting as it may be to try and get the best deal possible, when the market is as tight as it is right now, making a lowball offer isn’t going to get you far. Making a competitive offer in this climate is essential; you don’t want to make an offer that will be immediately thrown out. Listen to your realtor, they have years of expertise and will know how to guide you in making an offer they believe will be considered, and hopefully, accepted. 

4: Be flexible

Flexibility in real estate is a very useful trait, and when market conditions are as tight as they are now, it’s almost mandatory. That’s why it’s important to always be thinking one step ahead, to ensure you’re not left behind. If an offer you made is countered within your budget, you can gain a competitive edge by agreeing to certain contingencies (but please, resist the urge to waive the inspection, you don’t want to be stuck in a house you can’t afford to fix.)

5: Know what you need versus what you want

In the competitive world of real estate, you can almost count on not getting exactly what you want. That’s why it’s essential to know what are absolute requirements, versus desirable features. Having this predetermined will allow you to make easier and faster decisions, eliminating any doubt from the home-buying process. 

6: Don’t let your emotions control you

Buying a home is an emotional roller coaster that can take a lot out of you. Add to that the fact that it’s a huge financial investment, and you have everything you need for a potentially disastrous outcome. That’s why it’s important to listen to your realtor, as they are your voice of reason. They’ll be able to ensure you don’t compromise on any of your must-haves while keeping you within your budget, empowering you to make a competitive offer every step of the way.

There are other important factors that have an impact on your equity, such as the amount of earnest money one pays, the type of loan one gets, as well as contingencies, inspections, appraisal clauses, and more. One thing is for certain, navigating the world of real estate requires guidance, so working with a realtor is a must. If you haven’t found a realtor yet, or you’re looking for a change, let us help. We’ve got all the tools and know-how needed to make sure you can make a competitive offer, and come out on top in these unprecedented times. Set up a free consultation with us, and let’s find you your dream home.