Over the last few months, we’ve been in a very strong seller’s market here in DFW. Denton County had only 1.4 months of inventory in October 2020. If you are a current buyer in the market, you have probably experienced the competitiveness of the market firsthand! There are less homes available on the market, which means desirable homes are going fast, some even with multiple offers and over list-price. I wanted to go over 5 tips on how you can make your purchase offer more attractive in a seller’s market, whether you’re a first-time homebuyer or an experienced buyer:
Get Pre-Approved! In a competitive market, buyers need to be prepared with lender pre-approval. A pre-approval letter shows sellers that you are a serious buyer, ready to obtain the financing required to purchase their home. Most sellers will not even an entertain an offer without a pre-approval letter or proof of funds!
Be ready to make a move, fast! It’s important to move fast in a competitive seller’s market. Many homes are in a multiple offer situation. If you don’t get your offer in fast, you risk the seller accepting another offer. If homes in your price range and area are going under contract within days, be available to see homes as soon as they come on the market. Have a discussion with your agent and prepare an offer template beforehand so you’re ready to submit your offer right away.
Make a clean offer! Your offer should have as little contingencies as possible. That means in a seller’s market, your offer should not be contingent on the sale of your home. Some common contingencies in contracts are loan approval, appraisal, and repairs. Consider waiving the buyer approval contingency if you’ve already been pre-approved by your lender! This can give you a leg up over other third party financed offers.
Submit your very best offer. You may only get one chance to make an impression on the seller! If you’re competing with other offers, don’t submit a lowball offer thinking the seller will counter or negotiate with you. A seller will often disregard low offers, especially if they have other higher offers.
Price doesn’t dictate everything. Find out what is important to the seller. There may be other ways to appeal to the seller other than a higher offer price. For example, a seller may want a lease back so they can stay in the home through the holidays. If yours is the only offer that gives the sellers a free lease back through January, then they just might choose yours over another offer.
If you’re looking to buy, we can help you navigate this competitive market and help you figure out how to best present your terms to get an accepted offer! Give us a call today at (214) 449-1022!
Submitting an offer on a home without ever setting foot inside is not new… and now with the COVID-19 Pandemic, it has become more common place for buyers who simply don't want to take any risks. But is this a smart thing to do?