Have you ever been in a bidding war? No, I am not talking about an auction, just a regular home purchase. With so few houses for sale today and low mortgage rates driving buyer activity, bidding wars are becoming more common. Multiple-offer scenarios are heating up, so it is important to get pre-approved before you start your search. This way, you can put your best foot forward – quickly and efficiently – if you are planning to buy a home this season.
So, what should you do in a hot market to be prepared for a potential multiple offer situation? First, get pre-approved. Buyers who are pre-approved are a step ahead when it is time to make an offer. Having a pre-approval letter indicating you are a qualified buyer shows sellers you are serious. It is often a deciding factor that can tip the scale in your direction if there is more than one offer on a home. It is best to contact a mortgage professional to start your pre-approval process early, so you are in the best position right from the start of your home search.
Next, present your best offer. In a highly competitive market, it is common for sellers to pick a date and time to review all offers on a house at one time. If this is the case, you may not have an opportunity to negotiate back and forth with the sellers. As a matter of fact, the National Association of REALTORS® notes existing-home sales rose 1.4% on a seasonally adjusted annual rate from May to June, with no region showing a sales decline. Not only are properties selling quickly, but they are also getting more offers. On average, REALTORS® reported nearly three offers per sold property. Make sure the offer you are presenting is the best one the sellers receive. A real estate professional can help you make sure your offer is a fair and highly competitive one.
As you can see, the market is gaining steam. For several months houses have sold very quickly. Essentially, you may not have time to sleep on it or shop around when you find a home you love. Chances are, someone else loves it too. If you take your time, it may not be available when you are ready to commit.
The housing market is strong right now, and buyers are scooping up available homes faster than they are coming to market. If you are planning to purchase a home this year, talk to a local real estate professional to learn more about your current area, so you are ready to compete – and win.
Hope everyone has a great week! Remember to laugh and to do good things!
Stephanie Lemley, 2021 MBOR President