Home buyers can increase their offer acceptance with simple tips
By Guest Columnist Mallory Savner, Licensed Realtor®, Veterans Realty
If you have been home shopping lately, you probably know by now that the market is booming. Inventory is low, interest rates are low, which means demand is high, and all of this adds up to create a highly competitive marketplace. According to MLS data, in January 2020 there were ninety-one active listings for single family homes in Long Beach, with an average of ninety-four days on the market. Fast forward to January 2021, there were only seventy active listings for single family homes in Long Beach and an average of twenty-nine days on the market.
Not only are there less homes on the market as compared to the same month last year, but also homes are selling much quicker. The good news—with interest rates being much lower than they have been in quite some time, affordability is high.
Now, you may be reading all this as a potential home shopper wondering how you can compete. Let’s talk about a few ways to increase your odds of getting your offer accepted.
Have your pre-approval ready! I cannot stress this enough. If you are submitting an offer, your pre-approval should be attached with it. Many homes are getting multiple offers the first day on the market. If you submit an offer, and Jane Doe submits an offer, and they are very similar - except Jane Doe submitted a pre-approval and you didn’t - chances are high that Jane Doe’s offer will get accepted. If you are paying cash, submit a proof of funds with your offer. Sellers want to be sure you can qualify before accepting your offer and possibly missing out on other great offers.
Eliminate as many contingencies as possible. Of course, you want a clear termite report, it will need to appraise at or above sales price, and so on; however, there is a little leg work you can do beforehand to make your offer as simple and straightforward as possible. Check on taxes and insurance to see what those costs may be, so you feel confident in the home’s affordability for your situation. You want to feel comfortable in your purchase, so I am certainly not recommending that you eliminate any and every contingency. My suggestion if you really love a house is merely to make eliminations, where possible, that will not affect your confidence level in your purchase—the nice-to-haves, not must-haves.
Think about the seller’s bottom line. You may have just reread that and are wondering why you would care about the seller’s bottom line. At the end of the day, that is likely a big determining factor in the seller’s decision. The purchase price offered, minus any expenses you’ve asked them to pay, plus real estate commission and pro-rated taxes will determine their estimated net proceeds. Many sellers have an idea of the amount with which they would like to walk away. Your real estate agent can help you determine the best way to go about this, but certainly something to keep in mind.
I may have a few more tips of the trade, and, as an agent, I am happy to discuss all options/suggestions with my clients. If you have been considering buying a home, don’t let this competitive market deter you. Stay safe, my friends!