5 Things To Know When Submitting an Offer On A Home In 2021
Today's housing market is definitely in favor of sellers. With demand high and inventory low, chances are good that you will face competition. This doesn't mean all is lost. There are some steps you can take to increase your chances of putting in a winning bid. Keep these five things in mind when submitting an offer on a home in 2021.
1. Know What You Can Afford
While it can be tempting to bid just a tad out of your budget in order to get a home in a competitive market, this is a move that you could end up regretting. It's probably best to take some time to sit down and figure out just how much house you can afford comfortably and then plan to stick with that number. A smart move would be to get pre-approved by a lending institution prior to beginning your search so that you'll have a clear understanding of the numbers. Pre-approval also shows you are a serious and qualified bidder; it could give you an edge in a bidding war.
2. Be Ready to Move
Today's competitive real estate market moves fast. It's common for a house to be listed for only a couple of weeks before selling. If you don't want to miss out on any opportunities, you'll want to stay on top of things. A good agent can help you spot desirable homes and prepare a solid bid quickly.
3. Depend on Your Agent
Along these lines, you'll want to be sure you've done your research and that you trust your real estate professional. You'll need their inside tips if you want to keep up with the competition. A trained agent can advise you on ways to leverage your bids in order to best appeal to sellers.
4. Make Your Offer Strong
In a seller's market, you'll need to be prepared to make the strongest offer possible. With multiple bidders on most listings, you probably can't rely on offering at or near the asking price. Your agent is in a position to provide advice backed by data such as recent sales, market value, and demand. Be ready to offer above listing price.
5. Show Flexibility
Even a strong offer can be subject to a seller's counteroffer or conditions. When the market is this tight, it's crucial that you're ready to be flexible in order to best meet their needs. Conditions like a flexible move-in date or a slightly higher price may be things you can easily manage. Avoid things like waiving the inspection or an as-is sale, as these could leave you with expensive repairs. Make sure any concessions won't be detrimental or damaging to you.
These tips will help you stay competitive when submitting an offer on a home in 2021. There are a number of ways you can get what you want while remaining sensitive to a seller's needs as well.