The property market can be fiercely competitive. Even when described as ‘slow,’ it’s not uncommon to put an offer on a home and not be the only one to do so. It can be frustrating to wait for a homeowner to choose and even more frustrating when you aren’t the person they pick to buy their home.
While you might not be able to avoid entering a multi-offer situation, there are ways you can make yourself stand out. You might be able to improve your chances of securing your dream home by taking these essential actions:
Get a Mortgage Pre-Approval
Home sellers want a fast and easy house sale, and encountering buyers with mortgage pre-approvals can often help them get just that. Having a mortgage pre-approval means you’ve approached a lender, provided all the necessary paperwork, and have permission to buy a house of a particular value as long as it meets the lender’s conditions.
You know your preferred price range, the cash you’ll need to close, and your maximum monthly payments. However, mortgage pre-approvals also give home sellers peace of mind. They know you’re a serious buyer and may be able to close and move in faster than someone who hasn’t yet gone through the pre-approval process. As a result, they may choose you over someone who hasn’t yet approached a lender.
Make Your Best Offer First
It can be tempting to ‘lowball’ a home seller, thinking it will help you save money on your dream home. This tactic may work in car sales but not always in a hot property market. If there are multiple offers on a property, you’ll want to put your best offer forward to potentially improve your chances of having it accepted over others. If you’re unsure what to offer, research the area, find similar properties, review their prices, and put in an offer you can comfortably afford.
While you don’t want to make a hasty decision, sleeping on the decision to buy a house might mean it’s not the house you sleep in. Time is of the essence in a fiercely competitive property market. When you view a house and love everything about it, start putting steps in place to make it yours as soon as possible. Remember, in the time that passes since you viewed the house, other prospective home buyers might have also visited it and are taking the same steps to make it theirs.
Make a Clean Offer
It’s not always about the money for sellers. Their circumstances might see them need to move on quickly, and they’re looking for a fast and straightforward sales process. You might not be offering the most money, but you might stand out to them if your offer is clean with few contract conditions. There will always be standard conditions like finance, builder’s inspections, and closing dates, but be mindful of making additional conditions that may see sellers choosing other buyers over you.
Standing out from other home buyers in a competitive property market is rarely easy. However, by getting loan pre-approval, making a clean and competitive offer, and not waiting too long, you might be on your way to being an official new homeowner in no time.