In today’s competitive real estate market, lack of inventory and high buyer demand has led to multiple offer scenarios, bidding wars, and ultimately many disappointed buyers. If you have been actively looking for a home this year, you may have experienced this first-hand. Here are a few tips to set yourself up for success the next time you submit an offer:

1. Be ready to move quickly – we have been seeing many homes sell in just a matter of days with showings up 47% from last year and sellers receiving an average of 3 offers. It’s imperative to schedule a showing quickly when a good opportunity pops up. Setting up a showing with your agent as soon as a property hits the market will not only show the seller your seriousness as a buyer, but also gives you the advantage to submit an offer before its too late.
2. Understand your finances early – make sure you have an understanding of your budget and how much you can afford early in the home buying process. If you are planning to take out a loan (which is a great idea given the record-low interest rates), talk with a lender about getting pre-approved. According to Keeping Current Matters, only 44% of today’s prospective homebuyers are planning to apply for pre-approval. Getting pre-approved in advance will show a seller that you are a serious and qualified buyer, and can help you stand out from your competition.
3. Make a fair offer – it’s natural to want the best deal possible, but presenting a low-ball offer to a seller will make you seem like a non-serious buyer and unwilling to negotiate. Your agent can help you make a reasonable offer based on the condition of the home, the market value of the home, and recent home sale prices in the area. Typically, the sooner that a home sells, the higher the sales price. If there are other bidders, submitting an offer at or over the asking price is a great way to show your intent.
4. Be flexible in negotiations – once you submit an offer, the seller may accept it, reject it, or counter back. In order to strengthen your position within your competition, submit the cleanest offer possible. Examples include fewer contingencies, a shorter escrow period, offering all-cash, or a minimal amount of seller repair requests. Be open and willing to work with the seller on these items.
5. Trust your real estate agent – we understand that this is one of the most emotional decisions that a buyer will make in their lives, and we are here to guide you through the entire process by keeping you focused on what’s important and getting you the best deal possible. Make sure to choose a trusted real estate agent with years of experience, local roots, and market knowledge.

We can help you get started in your home search! Reach out to us at russellandtony@compass.com / 310.230.5771