Planning to buy a home this fall? You may need to get more creative to keep your dream home from slipping through your fingers.
Low prevailing interest rates coupled with a low inventory and a surging demand turn the real estate sector into a seller’s market. How can you avoid the typical bidding wars and get your offer accepted right out of the gate? Dig in to find out.
Get Prequalified
Prequalification is an elementary step that helps with the budgeting process when planning to buy a home.
A prequalification letter from a reliable lender such as Tidewater Mortgage Services indicates you can afford to buy the home and you’re ready to go.
It demonstrates you’re serious about the home, which may propel your offer to the top of the pile. Sellers often prioritize offers from prospects with a mortgage prequalification because it makes for a hassle-free sales process.
Make Your Offer Competitive
Real estate is a seller’s market during fall due to limited inventory. Sellers have the upper hand so you must make a strong offer for your dream home.
Double down on research to gain insights into the local market. Working with a reliable real estate agent can offer you insider secrets that can help present a seller with an offer they can’t refuse. If the property is worth it, going slightly above the asking price helps your offer stand out.
If you can’t afford to go higher, consider appealing to the seller’s emotions. People have a great attachment to their homes, especially when it holds great memories. Writing a heartfelt letter explaining what you love about the home and how you plan to keep it in great shape can work in your favor.
Be Flexible on the Closing Dates
Want your offer to stand out without going over the asking price? Make it clear that you’re flexible with the closing dates. A mortgage prequalification means you’re ready to close the home quickly. But what if the seller needs more time to vacate the home?
Making it clear you’re flexible on the closing dates can help you trounce other offers without incurring additional costs. Sellers appreciate such flexibilities because it allows them time to plan their move and eases the house-hunting pressure.
Some sellers may consider such concessions valuable and pick your offer over others that don’t work with their needs. You may also use this approach if your offer comes slightly below the asking price because sellers appreciate flexibility.
Minimize Contingencies
Due to limited inventory during the fall season, sellers are often inundated with offers. As such, they’re more likely to prioritize the more attractive offers—such as those with fewer contingencies. However, that doesn’t mean compromising on crucial factors such as a professional home inspection.
Instead, you may consider waiving non-essential contingencies such as requiring minor repairs or being flexible on appraisals.
Minimal contingencies coupled with your prequalification send a strong message that you’re a serious buyer. Consequently, a seller is likely to pick your offer over the others because it’s highly convenient for them.
Increase Your Earnest Money Deposit
Putting down earnest money is the hallmark of a serious buyer. It demonstrates an unbridled commitment to the sale. Previously, a $500 earnest money deposit was sufficient. Not anymore.
Today, 1% is customary—but not in a seller’s market. If possible consider kicking up your earnest money deposit to 2% or 3%. That makes your offer standout and leaves no doubt in the seller’s mind that you have skin in the game and want to close on the home.
Get Your Dream Home This Fall
Don’t let a shrinking inventory and growing demand get in the way of securing your dream home. Make your offer stand out by going over and above what that average buyer does when buying a home. With a little creativity and preparation, you can craft an irresistible offer that’ll help sway the seller in your direction.
Making an offer on your dream home? Stand out from the pack with a Tidewater Mortgage Services prequalification!
