When it comes to buying a house, you’re looking for the perfect place to call home. The problem is, in today’s market there just aren’t that many homes available to purchase. With inventory hovering near record lows and sky-high buyer demand, a multi-offer scenario is the new normal. Here are five things to keep in mind when you’re ready to make an offer.

1. Know Your Numbers

This important step is covered in our free online home buyer education class.  You want to make sure you have an understanding of your budget and how much house you can afford. This is essential in making the right decisions. That’s why your first step should be to connect with Curt Tiedeman, at Caliber Home Loans. He will provide you with a no obligation prequalification which will provide you with the numbers.  How much you will qualify for, monthly payment, and anticipated money you will need to close.

2. Be Ready to Move Quickly

Today’s real estate market is fast paced. According to the National Association of Realtors (NAR), the average home is on the market for less than 17 days. A skilled agent will do everything they can to help you stay on top of every possible opportunity. And, as soon as you find the right home for your needs, that agent will help you draft and submit your best offer as quickly as possible.

3. Lean on a Real Estate Professional

In a market like we have now there is no better reason to have a top-notch real estate agent.  Your agent does this every day, and they know what works. That expertise can be used to give you a significant leg up on your competition. Price is not always the deciding factor on whether a Seller accepts an offer. An agent can help you consider what options you can pull that might be enticing to a seller, like:

• Offering flexible rent-back options to give the seller more time to move out
• Your ability to do a quick close
• An offer that’s not contingent on the sale of your current home
• A local and respect mortgage lender that is recognized by the listing agent

It may sound simple but catering to what a seller may need can help your offer stand out.

4. Make a Strong, but Fair Offer

Let’s face it – inventory is low, and demand is high.  We all love a good deal, but that is difficult when the seller is in the driver’s seat.  There can be multiple offers, so be prepared in a competitive market!  Make a strong but fair offer based on recent sales and current demand.

5. Be Flexible in Your Negotiations

If you followed tip #3, the seller may still counter with their own changes. Be prepared to amend your offer to include flexible move-in dates, a higher price, or minimal contingencies (financing, inspection and appraisal are the main contingencies). Have your lender and agent educate you on these before you waive them. There are certain contingencies as a first-time buyer you may not want to forego. Freddie Mac explains:

“Resist the temptation to waive the inspection contingency, especially in a hot market or if the home is being sold ‘as-is’, which means the seller won’t pay for repairs. Without an inspection contingency, you could be stuck with a contract on a house you can’t afford to fix.”

Bottom Line

Know your numbers, get preapproved by a reputable lender, and select the right real estate professional to represent you. When it’s time to make an offer, it’s important to consider not just what you need, but what the seller may need too. Let’s connect so you have expert advice on this step in the homebuying process to put your best offer on the table.

Curt Tiedeman | NMLS License: 35554 | Caliber Home Loans | 206.650.4202 | Curt.Tiedeman@CaliberHomeLoans.com