With mortgage rates at historic lows, 2021 is a great time to buy a home. If you fall in love with a property, you should definitely consider making an early offer, or you might lose out, considering the market is a strong seller's market. Our REALTORS® can help you craft the perfect proposal, one that couples financial details with the nuances of negotiations to help you close on the house of your dreams.
Currently, the housing market remains open, and the demand to buy is high. But housing inventory is low, and it's easy to find yourself in a bidding war with other homebuyers. The offer of purchase opens the communication channels that lead to the final deal.
Making an offer is not a choice you should make lightly. But just how long should you wait before you make an offer?
Here's everything you need to know about making an early offer.
When you're in the market for a new home, you shouldn't wait too long after finding a house that's a good fit before making an offer. You should submit a bid as soon as you're sure you want to buy it.
Typically in a seller's market, sellers prefer to keep their houses longer on the open market to give buyers plenty of time to visit and bid on the home. Knowing this, many buyers hesitate to make an early offer thinking they're at a disadvantage. However, in a fast-moving market, a pre-emptive offer may get you the house that you want. Remember, good homes get snatched up pretty quickly.
When is an early offer your best bet? If you have preapproval and have done your research, then you should make an early bid. There's no point in waiting if you have everything in order. You never know who else is interested.
A popular saying in real estate is: the first offer is the best offer. There's no other point when a house is most attractive than when it's first listed. And this works in favor of those who make early offers.
House-hunting tip: To make your offer attractive, shorten the contingency period to a week or so. This way, you won't constrain the seller's marketing time if the deal fails to go through.
While an early offer may get you the house, you're unlikely to make a bargain in the process. For pre-emptive offers to be considered, they must be high to garner attention. You must be willing to pay a higher price when you make an early offer so you can't have any doubts about the house.
It's clear that your bid will have to stand out when competing against other buyers. You'll need to be strategic, and a personal touch could give you the edge you need.
Don't shy away from making an offer on a house you love just because the market is competitive. It doesn't cost a thing to make an offer. The right real estate agent will guide you through the process and work to find you the right home for you.