When planning to put in an offer on a highly desirable house, it’s important to know what could help you get closer to an accepted offer as a prospective buyer. There are many ways to help yourself stand out in a competitive market. Here’s some tips and tricks from Jen Dillard herself along with a few other helpful ideas.
Since housing inventory is low and demand is high, the market has become even more competitive, which is why it is crucial to know how to be a competitive buyer. If you’re trying to finance a home or would like to go the mortgage route, you will most likely find yourself in bidding wars, competing with all cash offers. Although one of the best things you can do is put down an all cash offer, we know this isn’t the route that the majority of us are able to go. Let’s look at what you can do when all cash isn’t an option.
DOCUMENTS & FINANCES
First, it’s a great idea to look at your finances before entering the market. There are a few ways to do this. We suggest making sure you have a good chunk of money saved for a down payment, along with looking at your credit score, “Pull your credit report to make sure there are no blemishes that need fixing or explaining when it comes time to finance. The better your financial picture entering the home buying process, the stronger your offer will be,” Chelsea Levinson says in The Homebuyer’s Go-To Guide For Competing in a Hot Housing Market. It is also a smart move to meet with a financial advisor to make sure you’re not missing anything.
LENDERS
Another helpful tip is to find a knowledgeable lender with good local relationships. This lender will help in many ways, from boosting your credit score to speeding up the application process, working with a local lender ensures you will get the fastest service and approval.
PRE APPROVAL
After getting documents and finances in order, it’s time to work on an offer. There are a few great ways to strengthen an offer. A pre approval or conditional approval can make the seller consider your offer more seriously, especially if there are cash offers in the mix.
EARNEST MONEY & CONTINGENCIES
In addition, earnest money strategies can make your offer much more competitive, Jen Dillard explains. An earnest money deposit shows the seller that you’re a serious buyer who is ready to close on the home. Jen suggests making you offer “as clean as possible and limiting contingencies and eliminating anything that may complicate the sale.”
Removing contingencies shows the seller that you’re ready to move as fast as possible to close the deal without any roadblocks. As stressful as buying a house is, selling a house can be even worse, which is why forgetting about any contingencies makes your offer much more appealing to the seller
ABOVE ASKING OFFERS
Lastly, it’s crucial to offer above asking in a competitive market. An offer above listing price might seem unreachable on a budget but “what are you willing to lose the home for? That’s what you should offer” says Jen. Normally cash offers are close to if not a little lower than asking price, so making an offer over makes the seller consider you more seriously.
TRUST THE EXPERTS
It is essential in any market, especially a competitive one, to choose the right real estate team. With years of experience and knowledge, JDRE is able to help you navigate the market in the Columbia Gorge. We are happy to answer any questions you might have and help evaluate your concerns. We offer amazing agents who will be there with you from start to finish. We will help you make the best decisions throughout the buying process whatever the state of the market and will do our best to make sure any doubts you might have had turn into a realistic possibility of owning a home.