April 5, 2021
If you’ve been tuned into the current real estate market you know that it’s a seller’s market. In other words, there is a shortage of homes being sold, which means lots of pricing power for the seller. If you’re looking to sell your house, this is great news for you! But if you’re looking to buy—this could mean higher prices and bidding wars. However, it IS possible to win in a multiple-offer situation and you could still end up with your dream home! Here are seven tips if homebuying is on your radar in 2021.
- Be prepared by being fully (and locally) pre-approved. You’ll demonstrate to the seller that you’re serious and ready to close the deal quickly.
- Find a local real estate agent. Having a local, knowledgeable agent on your side is a huge buyer advantage. Find someone that you “click” with that will work hard to help you find your home. Their experience will be invaluable to you.
- Put your best offer out on the table immediately. Even if the home you’re interested in doesn’t currently have multiple offers on it, that could change very quickly. It’s best to start out strong and meet the seller’s listing price or even go above that.
- Cash is king. This doesn’t necessarily mean you need to be able to make an all-cash offer. For most, that’s out of the question. But making a larger down payment may help your offer stand up taller against other bids.
- Try to avoid a home sale contingency attached to your offer. Most sellers will want to accept an offer that doesn’t depend on the sale of your current home, which may cause a problem down the road.
- Be flexible. Terms of your offer, closing date, etc. In the current market, your offer is more likely to be accepted if it includes some flexibility.
- Know when to bow out. You don’t want purchasing your dream home to come back and haunt you. Don’t get so caught up in “winning” the bidding war that you lose sight of what’s best for you long-term. In a seller’s market, it’s possible that finding a home that’s right for you could take a little longer than you had hoped. But it’s better to walk away than to sign a bad deal.