The real estate market is moving at a competitive pace. If you are in the market to buy a house, it is important that your offers stand out. With all the effort that goes into finding your next home, the last thing you want is to miss out on a good opportunity because another offer was accepted over yours. There are many factors that go into making an offer competitive. Burns & Ellis Realtors is here to give you some tips and tricks that will help get your offer noticed and accepted. Read on to learn more, and if you are in the Dover, DE area and are looking for an expert realtor to help you with your next move, call the office of Burns & Ellis Realtors today.
Mortgage Pre-Approval
As the market continues to get more and more competitive, obtaining a pre-approval becomes increasingly important. A mortgage pre-approval is a statement from a lender that states how much you are qualified to borrow. Coming into negotiations with a pre-approval letter assures the seller that you are a serious buyer, with the capital to make an offer on their property. Pre-approvals are for more than just the seller though. Having a letter of pre-approval also lets you and your realtor know what you are working with, and can help narrow down your search for a home.
Understand Your Market
Before starting the process of buying a home, it is essential that you gain a strong understanding of the market in the area that you are looking to move to. Of course, it is important to know that we are currently in a very competitive market, but it’s equally important to understand your specific market. Are houses going quickly in that area? What about that specific area makes houses go for less or more than in other areas? Having solid, research-backed answers to questions like these can up your negotiation game, as well as keep you from wasting time on homes that are listed way above what they are actually worth. Additionally, your real estate agent will be able to advise you and answer these questions.
Limit Contingencies
Contingencies act as an “as long as...” statement within a contract, so if you have a contingency on a contract, you are essentially stating that you will buy the home as long as a certain criteria is met. For example, you will buy the home as long as the home passes a home inspection. There are a long list of contingencies that you can consider, but in order to make your offer more attractive to a seller, limiting them to only the essentials may be best. This will show the seller that you are serious about their property.
The Escalation Clause
Escalation clauses are essential when you are sure you have found your dream home. In a bidding war, an escalation clause will escalate your bid up to a certain amount automatically. That way, if you are outbid on your first offer, the escalation clause will immediately up that offer to beat out the bid that beat out your original offer, keeping you at the top of the list. You will stay at the top of the list until your dedicated maxed-out bid is reached. Staying ahead of other offers is essential in this market, so ensuring that yours is the highest bid can be a lifesaver when you are serious about a home.
Offer Earnest Money
Earnest money works as an initial deposit on a home and is held in a separate escrow account until you reach settlement. By offering earnest money, the seller knows that you aren't just making offers on a bunch of homes, and instead, that you are serious and ready to buy. A good rule of thumb for earnest money is to offer anywhere between 1-3% of the home’s list price, but in some markets, this may be different. Be sure to consult with your real estate agent to ensure you are hitting the right mark.
Get Your Offer Accepted
Buying a home in the current market can be frustrating, and you may feel like you’ve hit a wall. By implementing some of these tips and tactics, you are becoming a serious, competitive buyer who will get their offer accepted. If you are located in or around the Dover, DE area and are looking for a realtor with the expertise and knowledge to get your offer accepted, contact Burns & Ellis Realtors today!