Congratulations, you’ve found your dream home! Unfortunately, so did four other bidders. Maybe the home is in a sought-after neighborhood, the housing market has a tight supply or interest rates are in a good buying zone. Whatever the reason, there are steps you can take to ensure that your offer catches the seller's eye.

Understand the Market

When it comes to making an offer that becomes the winning bid, sometimes timing is everything. Nationwide, houses are averaging just 24 days on the market, according to the most recent data from the National Association of Realtors (NAR). If a seller is🍬 looking to get out of one property to finance the purchase of another, they might want an even shorter timeline.

Housing inventory is currently tight, which means each property on the market is in high demand. This is advantageous for sellers who want to reach a deal quickly—and given the demand, they’re likely to get at least their asking price, if not more, should a bidding war arise🎉.

In real estate, a bidding war can occur when multiple buyers are vying for the same property. The buyers compete by incrementally increasing their offers, often pushing them higher than the asking price. NAR June 2024 data show that houses on the market got an average of 2.8 offers, and demand does not show signs of slowing. That’s why takin༒g the steps to ensure your offer stands out boosts your oꦍdds that it might pay off in the long run.

“There is a lot ﷽of competition right now. And with that, there are almost always multiple offers on homes for sale. That’s why you have to start thinking about what is doable and attractive to help your buyers sell themselves,” says Angela Larkin, a sales associate and accredited buyer representative at Brown Harris Stevens in Montclair, New Jersey.

Research the Property

Thoroughly research the property you’re interested in. This i𝕴ncludes the property value, condition, and market demand. Revie♈wing other listings in the area can give you a good idea of your target neighborhood’s market. There are also online tools, such as , that can help calculate the approximate value of a home.

Additionally, 澳洲幸运5开奖号码历史查询:choosin𝐆🍸g the right real estate agent or broker who specializes in helping buyers make competitive offers can give you an upper hand. When vetting agents, the National Association of Realtors recommends looking for those listed as Accredited Buyer Representatives—these are agents who focus on working directly with buyer-clients at ever🐬y stage of the home-buying process.

Your agent can also help identify what is most important to the seller, like how much their listing price matters, how risk-averse the seller is to first-time buyersౠ with a mortgage vs. an investor with cash on hand, and how quickly they want to close.

Make a Strong Offer

It’s crucial that you price your offer competitively. If the home price is reasonable, you could los🃏e out with a lowball offer or an offer under asking. In a competitive market, putting in a slightly higher offer to stand out ma﷽y make more sense.

To determine the right offer price, you can analyze comparable sales. Your real estate agent can create a 澳洲幸运5开奖号码历史查询:comparative market analysis (CMA) to help you compare the pr🧔ice of your dream home to what similar homes sold for in 🌠the area. A CMA considers the location, size, construction, condition, style, and other factors. If you’re not working with an agent, you can do your own comparisons by researching recently sold properties in the area on websites like Zillow.

As noted above, with homes inඣ high demand, properties are likely to sell for the asking price or even more. That being saiꦯd, if you sense you’re up against multiple buyers, it may be smart to offer at least the asking price upfront.

Here are add💟itional tips for making a competitive offer.

• Show proof of mortgage pre-qualification. This means that a lender has completed a cursory review of your finances and pre-qualified you for a home loan. This can be advantageous in a seller’s market because it speeds up the buying process. There are plenty of mortgage lenders or brokers that offer competitive financing options for homebuyers, whether you’re veteran buyers or first-timers.
• Offer more earnest money. Earnest money is a good-faith deposit toward the purchase of a home, typically around 1% to 3% of the purchase price. In a competitive market, you may choose to increase this to 5% or higher to stand out and prove your commitment. It’s delivered when the sales contract or purchase agreement is signed, but it can also be attached to the offer. Note that you must ensure that the deposit is refundable in case you choose not to proceed with the purchase. Typically, a contract is written up during the exchange of the earnest money that outlines the refund conditions.
• Prepare an escalation clause. An escalation clause is a way to automatically escalate your bid by a certain dollar amount, up to a certain ceiling, to compete with other bids. Escalation clauses are written by the buyer and seller’s agents. Your agent can also help you determine what’s appropriate, as it’s smart to keep your offer close to the home’s appraised value.

Should You Negotiate the Price in a Competitive Real Estate Marꦰket?

In a 澳洲幸运5开奖号码历史查询:seller’s market, the pressure is on the buyer to offer a competitive price. Home prices are typically higher in a seller’s market, and with high demand for housing, the selle✨r has more power in negotiations than buyers do.

As a buyer in a seller’s market, you likely won’t be able to negotiate much. However, there may be room to negotiate if the home needs some work. Your biggest asset on which to base your negotiations will be comparable homes in th𓃲e area that sold for a similar price and how their conditions compare to the one you are bidding on.

Still, with multiple offers, th♐e seller ꦦis unlikely to make concessions and will go with the best offer.

Minimize Contingencies

To make your offer more attractive to the seller, you may also want to minimize your coﷺ🐓ntingencies.

A 澳洲幸运5开奖号码历史查询:contingency is a clause that buyers can include when making an offer that allows them to♉ back o๊ut of the purchase if the terms of the clause are not met.

The buyer may have a 澳洲幸运5开奖号码历史查询:contingency clause written into an offer to buy the home only if it passes inspection. Should there be issues—su💧ch as a shoddy foundation or mold—discovered by the inspection, the buyer has the opportunity to withdraw the offer or negotiate a lower price.

You can also structure a contingency based on the appraisal. The lender providing the mortgage for the property will send an appraiser to assess the vaꦰlue—if it’s determined to be of lower value than the sale price, it could prompt a contingency clause that lets the buyer request a lower price or abandon th💮e transaction.

Without a contingency, for examꦛple, buyers risk losing their earnest money deposit if they decide not to purchase the property after making an o🍷ffer.

You aren’t required to include contingencies in an offer, but it’s a good idea to include at least one to ensure you get your earnest money back. Most buyers i🧸nclude home inspection contingencies, appraiꦐsal contingencies, and mortgage contingencies in their offers.

If you want to expedite the sale or make your offer more attractive to the seller, you may waive a few of 🤪these contingencies. It’s recommended that you keep your home inspection contingencies, as this will ensure your purchase on the condition that the home is structurally sound.

A general inspection contingency requires a review of th𒈔e home’s plumbing, appliances, roofing, and integrity to ensure you🎃’re making a wise—and safe—investment. However, there are less crucial ones, like a buyer’s sale contingency, which allows buyers to back out of a sale without legal repercussions if their property doesn’t sell first. If you have the funds to waive this contingency, it can be advantageous for the seller.

Stand Out from the Competition

With mortgage pre-approval, an earnest money deposit, and limited contingencies, you will show the seller that you’re ready and able t🔯o move quickly on📖 a purchase.

Another plus, Larkin notes, is working with local lꦡenders. “The timing can be challenging when working with larger business centers versus a local branch with someone who’s going to be more hands-on,” she says.

But while these details are all important parts of the deal, one more can be the clincher: conඣnecting with the seller emotionally. When making your offer, write a personal letter telling the seller why you love their ho🥂me.

Whether it’s the neighborhood, the dream kitchen, the amazing𓃲 landscaping, or the history, telling the seller you see a future home in their home is one more effᩚᩚᩚᩚᩚᩚ⁤⁤⁤⁤ᩚ⁤⁤⁤⁤ᩚ⁤⁤⁤⁤ᩚ𒀱ᩚᩚᩚective way to stand out from the competition.

The Bottom Line

With the demand for homes currently inflated, it’s important to make a competitive offer to ensure you catch the seller’s eye. Getting mortgageဣ pre-approval, minimizing contingencies, and offering more earnest money wജill all make your offer more attractive. In the event of a bidding war, an escalation clause or a personal letter to the seller may help seal the deal.

No matter how badly you wa🌼nt the home, remember to keep your offer contingent upon a proper inspection and your offer price within range of the home’s value.