Currently, home sellers are receiving multiple offers which create bidding wars between home buyers. With low housing inventory, new home construction trailing behind buyer demand, and interest rates still at historical lows creates the perfect storm where buying a home gets competitive. So, what are some of the best ways home buyers can give themselves an advantage?
Get Pre-Approved For A Home Loan
The first thing interested buyers need to do is to get pre-approved for a home loan. Since many sellers are receiving multiple offers, there might be a cash offer on the table that they would be more willing to accept. In order for potential buyers to compete with cash offers, they need to get pre-approved for a home loan, which tells the seller that the buyer has already been approved for a defined loan amount by a lender. Getting pre-approved is vital to making buyers more competitive.
Present The Best Offer First
Buyers need to be prepared and ready to submit their best offer first. If they can convince the seller to forgo considering other offers, they may have a better chance of securing the home. Therefore, buyers should be working with experienced real estate professionals who can help them figure out what their budget is, what comparable homes are selling for, and how they can make a competitive offer that will convince the seller to accept their offer.
Act As Quickly As Possible
Finally, buyers must act as quickly as possible. Good properties are not staying on the market as long as they once did. MLS records show that houses are spending fewer days on the market now than they did a year ago. Therefore, buyers should not delay in getting their financial documents in order for pre-approval and should schedule to see potential house listings as soon as possible. Homes could have multiple offers before their scheduled open house weekend and be taken off the market the following week.
Get Ready To Win A Bidding War
These are just a few of the most important steps home buyers need to take in order to win a bidding war. Even though the market is hot, it’s still possible to find a home with the right strategy.