From Your President of The Lynchburg REALTORS ® Association
How To Make The Best Purchase Offer In A Seller ’ s Market !
You ’ ve worked with a REALTOR ® to scour the listings , toured what feels like a million houses and finally found it : the house you want to call home . The next step is to make your purchase offer , and if you are like most people , the prospect can be quite intimidating . In a seller ’ s market , there can be even more pressure on the buyer to submit an impressive bid . So how can you make sure that the offer you submit is the one that is accepted ?
“ In a seller ’ s market , home prices are a bit higher , and inventory is lower ,” said Polly Wooldridge , President of the Lynchburg Association Of REALTORS ®. “ This means you are more likely competing with multiple bidders . In a competitive market like this , buyers need every advantage they can get , and working with a REALTOR ® to make the best purchase offer is a smart move .” And believe it or not , the bid with the highest price is not always the one that wins .
“ Of course , sellers want to get the best price for their home , but that isn ’ t always the deciding factor ,” said Wooldridge . Eliminating or reducing the number of contingencies with your bid , through things like pre-offer inspections , can also help make your offer stronger . The bid that causes the least amount of hassle for the seller is the one that will probably win .”
That doesn ’ t mean , however , that you should just submit a below market offer with no contingencies . “ This is not the time to make a lowball offer ,” said Wooldridge . “ When you are going up against more than one potential buyer , it ’ s the time to put your best foot forward .” This might be your one chance to convince the owner to sell their home to you , so it ’ s even more important to submit your best possible purchase offer .”
If you can pay cash for your home , chances are your bid will be accepted . Sellers ’ appreciate allcash offers as they usually mean a quick , streamlined purchase . Financing issues , such as delays in mortgage approval or getting funds moved from the buyer ’ s bank account , are the primary causes of delays in the closing process . If a seller can avoid a lengthy or complicated process by choosing an all-cash buyer , they likely will .
For most people , however , a cash offer isn ’ t a possibility , and you ’ ll need to qualify for some variety of mortgage financing . If this is your situation , Wooldridge recommends getting preapproved for a mortgage before you begin the search process . “ With loan preapproval , you ’ ll be able to make a solid commitment to buy , and your offer will be more appealing to the seller ,” said Wooldridge .
And of course , the most important thing that you can do to give yourself an advantage is to hire a REALTOR ®. “ REALTORS ® have real insights and unparalleled knowledge of your local market and can help you navigate the complicated home buying process ,” said Wooldridge .