Ready for the spring homebuying season? In today’s robust housing market, multiple offers are the norm in many areas. It’s a seller’s market. Here are some things to keep in mind as you get ready to make an offer on a property:
Think twice about making lowball offers: It’s an enduring myth among home buyers: Many people think the only way to make an offer on a home is by making a lowball offer and work up from there to get the best deal possible. However, in reality, lowball offers aren’t as effective as you might think unless the property has languished on the market for a long while. In a hot real estate market, consider making your best offer upfront.
Have your financing lined up before you begin: Make sure you’re pre-approved for a home loan before you look at a single property and definitely before making an offer. (If you’re a member of our nation’s military or a veteran, ask us about VA home loans!) Many sellers will not accept offers from buyers who haven’t yet lined up financing. When making an offer, ask your real estate agent about making a larger earnest money deposit; doing so could help position yourself as a serious buyer.
Carefully plan contingencies: Offers should almost always be made contingent upon a home inspection. Beyond that, though, sellers in a healthy housing market are likely to reject an offer that contains several buyer conditions or contingencies. For example, in a hot seller’s market, you probably aren’t going to have much success making an offer contingent upon the sale of your existing home or a similar demand.