Things That Could Help You Win A Bidding War On A Home
Things That Could Help You Win A Bidding War On A Home
With a limited number ofhomes for saletoday and so many buyers looking to make a purchase beforemortgage ratesrise further,bidding warsare common. According to thelatest reportfrom theNational Association of Realtors(NAR), nationwide, homes are getting an average of 4.8 offers per sale. Here’s a look at how that breaks down state-by-state (see map below):
The same report from NAR shows the average buyer made two offers before getting their third offer accepted. In this type of competitivehousing market, it’s important to know what levers you can pull to help you beat the competition. While a real estate professional is your ultimate guide to presenting a strong offer, here are a few things you could consider.
Offering over Asking Price
When you think of sweetening the deal for sellers, the first thought you likely have is around the price of the home. In today’s housing market, it’s true more homes are selling for overasking pricebecause there are more buyers than there are homes for sale. You just want to make sure your offer is still within your budget and realistic for the market value in your area – that’s where a local real estate professional can help you through the process.Bankratesays:
“Simply put, being willing to pay more money than other buyers is one of the best ways to get your offer accepted.You may not have to increase it by a lot — it’ll depend on the area and other factors — so look to your real estate agent for guidance.”
Putting Down a Bigger Earnest Money Deposit
You could also consider putting down a larger deposit up front. Anearnest money depositis a check you write to go along with your offer. If your offer is accepted, this deposit is credited toward your home purchase.NerdWalletexplainshow it works:
“A typical earnest money deposit is 1% to 2% of the home’s purchase price, but the amount varies by location.A higher earnest money deposit may catch a seller’s attention in a hot housing market.”
That’s because it shows the seller you’re seriously interested in their house and have already set aside money that you’re ready to put toward the purchase. Talk to a professional to see if this is something you can do in your area.
Making a Higher Down Payment
Another option is increasing how much of adown paymentyou’re going to make. The benefit of ahigher down paymentis you won’t have to finance as much. This helps the seller feel like there’s less risk of the deal or the financing falling through. And if other buyers put less down, it could be what helps your offer stand out from the crowd.
Non-Financial Options To Make a Strong Offer
Realtor.compoints outthat while increasing these financial portions of the deal can help, they’re not your only options:
“. . .Price is not the only factor sellers weigh when they look at offers.The buyer’s terms and contingencies are also taken into account, as well as pre-approval letters, appraisal requirements, and the closing time the buyer is asking for.”
When it’s time to make an offer, partner with a trusted professional. They have insight into what sellers are looking for in your local market and can give you expert advice on what levers you may or may not want to pull when it’s time to write an offer.
From a non-financial perspective, this can include things like flexible move-in dates or minimal contingencies (conditions you set that the seller must meet for the purchase to be finalized). For example, you could make an offer that’s not contingent on the sale of your current home. Just remember,there arecertain contingencies you don’t want to forego, like yourhome inspection. Ultimately, the options you have can vary state-to-state, so it’s best to lean on an expert real estate professional for guidance.
In today’s hot housing market, you need a partner who can serve as your guide, especially when it comes to making a strong offer. Let’s connect so you have a trusted resource and coach on how to make the strongest offer possible for your specific situation.
Author:Brian Woodhead -Skyline Team Leader Phone: 602-369-0671 Dated: May 3rd 2022 Views: 58 About Brian Woodhead: Realtor Designation
You deserve a Realtor with the Knowledge from these designations. Realtor’s...
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You deserve a Realtor with the Knowledge from these designations. Realtor’s that take the time to earn these designations are the industry leaders and top producers. We care about your real estate purchase and want to give you a level of service and representation that will make you a client for life. Brian Woodhead has all of the following:
MASTERS OF REAL ESTATE SOCIETY-
Membership in the MRE society recognizes an individuals dedication to excellence through professional education and commitment to staying abreast of the latest real estate regulations and practices. Less than one percent of REALTORS in Arizona belong to this Society.
GRI - Graduate, REALTOR® Institute
The Graduate REALTOR® Institute (GRI) symbol is the mark of a real estate professional who has made a commitment to providing a superior level of professional services by earning the GRI designation. REALTORS® with the GRI designation are highly trained in many areas of real estate to better serve and protect their clients.
Why Choose a REALTOR® With a GRI designation?
Buying property is a complex and stressful task. In fact, it's often the biggest single investment you will make in your lifetime. At the same time, real estate transactions have become increasingly complicated.
New technology, laws, procedures and the increasing sophistication of buyers and sellers require real estate practitioners to perform at an ever-increasing level of professionalism.
So it's more important than ever that you work with an agent who has a keen understanding of the real estate business. The GRI program has helped the best and the brightest in the industry achieve that level of understanding.
• Nationally recognized as top performers in the real estate industry
• Professionally trained
• Dedicated to bringing you quality service
A GRI can make a difference
When you see the letters "GRI" after an agent's name, you can count on receiving the knowledge and guidance you need to make your transaction go smoothly. In short, you can count on getting the best service available from a real estate professional.
CRS - Certified Residential Specialist
Why a CRS? Today, home buying and selling is faster, more complex, and more competitive in every way. Our goal is to make the process a little easier for you. The first step is choosing the right REALTOR®.
Experience - To earn the Certified Residential Specialist (CRS) Designation, every REALTOR® must have significant experience and volume of real estate transactions.
Ethics - Every CRS Designee is required to maintain membership in the NATIONAL ASSOCIATION OF REALTORS® and to abide by its strict Code of Ethics.
A focus in home buying and selling - To help make the home buying and selling process more rewarding, every CRS Designee must have a proven track record in the business, as well as advanced education in related areas like finance, technology and marketing. Work with the top 5%
Technology Expertise - The training available to CRS Designees includes a strong focus on technology and its applications in the real estate business.
ABR - Accredited Buyer Representative
The Accredited Buyer Representative (ABR) designation is the benchmark of excellence in buyer representation. d designation is awarded by the Real Estate BUYER'S AGENT Council (REBAC), an affiliate of the National Association of REALTORS, to real estate practitioners who meet the specified educational and practical experience criteria. More than one million people in the United States are licensed to sell real estate. Of those licensees, fewer than 2 percent are Accredited Buyer Representatives (ABR).This covete
The New Real Estate Professional must meet the needs and expectations of the Connected Consumer. The rules of business are changing, especially the real estate industry. The e-PRO Certification Program is specifically designed to keep the agent on top of changes and help you meet your goals in the exciting and rewarding world of online real estate.