Currently, national real estate markets are trending towards highly competitive environments driven by record-low inventory and mortgage interest rates. Before the coronavirus had even made its way to the US, experts were predicting a housing shortage. The pandemic exacerbated that shortage, making home building more difficult.

This has led to seller’s markets in which multiple offers are being made on new listings in many markets across the nation. As a result, buyers have to stay competitive if they really want to become a new homeowner. 

Luckily, there are moves you can make now to better help you win the bidding war.

1. Start Strong

Preparation for purchasing a home should start years in advance. By building your credit score and your down payment, you can get a headstart on many other prospective buyers, painting a worthy image of yourself to both lenders and home sellers. 

This requires a dedication to paying bills on time while setting aside a sum from every paycheck to go towards home ownership. Keep an eye on your credit score and don’t let your debt ratio pile up too much. The more you can put down on a home, the better your odds of receiving great financing deals for the home of your choice.

2. Get Pre-Approved

Waiting until you put down an offer to seek financing approval can be a big mistake in a competitive market. With other buyers ready to go, you need all the tools in your toolbox for a competitive offer. This means having your pre-approval letter on hand before you even start your home search.

Many sellers won’t take an offer without such a letter seriously. They will turn instead to buyer’s with the finances guaranteed so they don’t waste time on a bad deal. Home seekers should contact mortgage services at the beginning of the home search process to secure this necessary advantage.

3. Move Quickly

Some markets across the nation are experiencing competition unlike anything seen before. This means offers made with hours of posting, as many as three offers for the average home sold, and constant snapping up of available inventory. 

To get in on heavy market competition, buyers have to be ready to act fast. Homes aren’t staying long on the market, and inventory in many areas is hitting lows due to pandemic complications. Buyers have to be ready with their full offers and pre-approval letters while keeping a constant eye out for new listings. 

4. Go Big

Dealing with heavy competition requires going big to get a home. If you are sure about a property, be prepared to offer—within reason—the limits of your budget. You will need your offer to beat out the competition if you really want to get your foot in the door, so start high.

Since it takes time for sellers to review offers on their home, you don’t have the ability to go back and forth negotiating. Instead, you want your initial offer to stand out. Make use of all the advantages you have to offer to compose the best offer—with professional advice, of course.

5. Find Exceptional Assistance

Due to the highly competitive nature of today’s real estate markets, you will want all the help you can get in winning the bidding war. This means enlisting the aid of real estate agents and financial professionals who can direct you to the best possible property for your housing and investment needs. 

You’ll need a realtor who is on top of current listings and market trends, as well as financial advisors who can inform you what an acceptable deal is in your neighborhood. Winning the bidding war isn’t easy. Get help in your corner to come out on top.

For more information on real estate investment and property management, contact 208.propeties or visit us on social media.