In the past year, the real estate market in the United States has seen many changes. As prices of existing homes continue to rise, it is clear to people in the industry that it is now a seller’s market. If you are looking for the home of your dreams, then you need to learn how to navigate the existing real estate market.
Nearly 6 million people realize their dreams of owning a home every year in America. When multiple people are vying to purchase the same home, multiple offers will be submitted to the current owner. Are you trying to get your offer on a home accepted by the owner? If so, here are some tips to help you out.
Start By Submitting a Clean Offer
When reviewing multiple offers on their home, a person will usually choose one that is simple and straightforward. In most cases, offers that are contingent on the sale of another property or contain other financial constraints will be overlooked completely. If you want to make your offer “clean”, then removing these types of constraints is imperative. You also need to work on removing seller concessions, like helping with closing costs.
If the existing seller has provided a detailed inspection report from a reputable company, you may also want to remove any inspection contingencies from your offer. The easier you can make it for a person to sell their home, the easier it will be to acquire the home of your dreams. Allowing an experienced real estate agent to help you draft an offer is a great way to avoid mistakes during this process.
Make An Offer Above The Asking Price
One of the biggest mistakes you can make when competing with other homebuyers for a particular property is making a lowball offer. You need to realize that these offers will be ignored. If you want your offer to stand out, then you need to give the buyer more than they are asking for the property in question.
Generally, you only need to go over the asking price by $2,000 to $3,000 to attract attention from the seller. You need to make sure that going above the asking price won’t come back to haunt you in the long run. This is why consulting with a real estate agent to find out more about the property values in the neighborhood in question is wise. With this information, you can make a decision regarding how to structure your offer.
Prove You Are a Good Faith Buyer
Using an earnest money deposit is also a good way to attract attention from a home seller. This money, also known as a good faith deposit, shows that the seller you are serious about buying their property. If your offer is accepted, you can use the money in your earned money deposit for a down payment or to cover closing costs.
If you want to beat out your competition and land a great home, then you need to utilize the tips in this article. By using these tips, you can create an offer that is hard for a home seller to refuse.