Last Updated on August 8, 2024
Luckily for buyers, there are more homes on the market now than a year ago. Compared to last summer, inventory has risen by 37.1%, but despite increased inventory, some buyers are still finding the home search challenging.
While inventory is growing, it’s still not where it needs to be to have a balanced market. Besides inventory issues, one of the biggest issues in the housing market is the fact that first-time homebuyers and older adults hoping to downsize are often competing for the same homes.
The latest National Association of Realtors data shows us that first-time home buyers are the largest buying segment on the market today, making up 32% of the home buying population.
If you’ve been searching for homes for a while and are tired of getting outbid, here are 5 tactics to employ to have your next bid accepted.
Keep a wishlist
While you’re unlikely to find a home that checks all the boxes, keeping a wishlist and notes about each home you view will help you objectively know when you’ve found the one. As your search continues, keep track of the listing and sales price of each home, which will help you spot any trends.
Familiarize yourself with the comps
Understanding comps, or comparable sales, is a big piece 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 on in your home search, it’s a good idea to pull past comps of the neighborhoods you’re interested in.
You can do your homework at look at houses that have recently sold, studying various factors that influence sales price, such as square footage, how updated the home is, location, curb appeal and more.
Having a solid idea of how much to offer to win the bid begins with having robust knowledge of the comps 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 realtor will help you figure out what’s important to the seller so that you can carefully craft a more competitive offer.
You may have to be more flexible to make this work to your advantage. For example, you may win the offer by offering a competitive price and adding in conveniences for the seller. One example would be to accommodate the seller’s future plans by offering an ideal closing date.
Beyond the closing date, lean on your Realtor as to what’s the best strategy for due diligence and earnest money in your current local market when building 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 negotiating, it isn’t quite the way it was in the past.
You need to come to the table with your highest and best offer first. These days, homes that are priced well will move fast and receive multiple offers. Offers that are low won’t even be considered.
Find a realtor with connections, expertise and serious negotiating skills
Don’t let this housing market get you down when you seek out an experienced Realtor with strong community connections and serious negotiating skills.
A word of advice…don’t waive inspections
In an attempt to have their offer accepted, a growing trend among buyers has been to waive home inspections. We advise that you don’t waive home inspections, as it’s just not worth the risk down the road. Remember, a home inspection protects you (the buyer), as a qualified inspector reviews four key areas crucial to a safe and efficient home.
