{"id":3911,"date":"2014-11-09T14:40:45","date_gmt":"2014-11-09T19:40:45","guid":{"rendered":"https:\/\/www.bhgre.com\/bhgrelife\/?p=3911"},"modified":"2015-01-09T14:49:38","modified_gmt":"2015-01-09T19:49:38","slug":"making-an-offer-on-a-house-in-a-sellers-market","status":"publish","type":"post","link":"https:\/\/www.bhgre.com\/bhgrelife\/making-an-offer-on-a-house-in-a-sellers-market\/","title":{"rendered":"Making an Offer on a House in a Seller\u2019s Market"},"content":{"rendered":"
Making an offer on a house can be one of the most stressful aspects of the home buying process. Even if you think you\u2019re making a strong real estate purchase offer, another buyer can still end up outbidding you, especially if you\u2019re trying to buy a home in a seller\u2019s market.<\/p>\n
A seller\u2019s market describes an area where there are more people looking to buy homes than there are people who are selling their homes. In this type of environment, sellers are more likely to receive multiple bids, increasing the level of competition between buyers for a particular home. Fortunately, there are several strategies potential homebuyers can implement to boost their bargaining power when they\u2019re making an offer on a house.<\/p>\n
Pay With Cash<\/strong><\/p>\n
Not many homebuyers have enough cash to completely pay for their homes without the help of a mortgage loan. However, if you have enough cash to pay for a house outright, you\u2019re likely to be one of the few \u2013 if not only \u2013 all cash bidders who are trying to purchase that particular house, which makes you a more attractive candidate for many homeowners.<\/p>\n
Cash offers are more appealing than financed offers because a financed offer has the potential to fall through during the mortgage approval process. When a buyer comes to the table with cash, there are fewer stumbling blocks that could slow down or derail the closing process. Because there\u2019s less risk involved, some sellers may even accept a cash offer that\u2019s lower than competing financed offers.<\/p>\n
Get Pre-Approved<\/strong><\/p>\n
If you aren\u2019t able to pay cash for your home, getting pre-approved for your mortgage is another way to make your real estate purchase offer more appealing to home sellers. Being pre-approved for a mortgage means that a loan officer has reviewed your credit, income level and other qualifying information and has certified that you will be approved for specified loan amount.<\/p>\n
Having a pre-approval letter shows sellers that if they accept your bid, there\u2019s a stronger chance that your final loan application will be go through without any issues. Sellers usually have more confidence in pre-approved offers, giving you an edge over potential buyers who haven\u2019t gone through the pre-approval process.<\/p>\n
Make a Fair Bid<\/strong><\/p>\n
Many homebuyers are understandably interested in securing the best purchasing price for their new home. However, placing a lowball bid may not be the best strategy in a seller\u2019s market. In a market that\u2019s likely to bring multiple bidders to the table, you\u2019ll have a higher chance of success if you place a bid that matches the asking price or exceeds the asking price. Your real estate agent can give you even more expert guidance on what the best bidding level is for your desired property.<\/p>\n
Make an Offer with Fewer\/No Contingencies<\/strong><\/p>\n
Almost every real estate purchase offer will include certain contingencies. Contingencies give you the option of nullifying the real estate contract under certain conditions, such as if the new house is appraised at a lower value than the purchase price. Some contingencies are fairly standard \u2013 such as specifying that the house has a satisfactory inspection report. However, additional contingencies may make a seller think twice about choosing your bid if he has other competing bids that don\u2019t include as many contingencies. Carefully consider what contingencies are important to you, and only include the ones you think are absolutely necessary.<\/p>\n