Last updated on August 8, 2024
Fortunately for buyers, there are more homes on the market now than there were a year ago. Compared to last summer, inventory is up 37.1%, but despite the increase in inventory, some buyers are still finding it difficult to find a home.
While inventory is growing, it is still not where it needs to be to have a balanced market. In addition to inventory issues, one of the biggest problems in the housing market is the fact that first-time homebuyers and seniors looking to downsize are often competing for the same homes.
The latest data from the National Association of Realtors shows us that first-time homebuyers are the largest buyer segment in the market today, making up 32% of the homebuyer population.
If you’ve been looking at homes for a while and are tired of being outbid, here are 5 tactics you can employ to get your next offer accepted.
Keep a wish list
While you’re unlikely to find a home that ticks all of your boxes, keeping a wish list and notes about each home you visit will help you objectively know when you’ve found the right one. As you continue your search, keep track of each home’s listing and sales price, which will help you spot any trends.
Familiarize yourself with the Recent Comps
Understanding comps, or comparable sales, is an important part of the puzzle when it comes to offering the right amount. Even before you’re ready to make an offer, when you’re still early in your home search, it’s a good idea to look at past comps within the last 6 – 9 months for neighborhoods you’re interested in.
You can do your homework and look at homes that have sold recently, studying various factors that influence the sales price, such as square footage, how up to date the home is, recent upgrades or additions, location, curb appeal, and more.
Having a solid idea of how much to offer to win the bid starts with having a solid understanding of the comparisons in an area.
Think beyond the price
It’s time to get creative and think beyond price when making an offer in today’s real estate market. A good real estate agent will help you determine what’s important to the seller so you can carefully craft a more competitive offer.
You may need to be more flexible to make this work in your favor. For example, you can win the deal by offering a competitive price and adding amenities for the seller. An example would be accommodating the seller’s future plans by offering an ideal closing date.
Beyond the closing date, lean on your real estate agent for the best due diligence and escrow strategy in your current local market when crafting your offer.
Start with your best offer first
In the old days of home buying, many buyers expected a negotiation process, and while there will still be some negotiation, it’s not exactly like it was in the past.
You should submit your best and highest offer first. In the current market, well-priced homes sell quickly and receive multiple offers, with low offers unlikely to be considered.
Find a real estate agent with connections, experience and serious negotiation skills.
Don’t let this real estate market discourage you when looking for an experienced real estate agent with strong community connections and serious negotiation skills.
A tip: Don’t give up on inspections
In an attempt to get their offer accepted, a growing trend among buyers has been to forgo home inspections. We recommend that you do not forgo home inspections, as they are not worth the risk in the long run. Remember that a home inspection protects you (the buyer) as a qualified inspector reviews key areas that are crucial to a safe and efficient home.
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