Submitting a Competing Offer on a Home

How to Submit a Competitive Offer

With inventories of available homes sliding ever downward, real estate markets across the country are becoming more competitive. It seems like only yesterday that buyers were in the driver's seat, able to take their time with the purchase process. Today, it's a whole different story. Nationwide, the inventory of available homes has shrunk to its lowest level in 13 years. At the same time, mainly due to low interest rates, buyer interest is at 2010 levels. Naturally, when demand outstrips supply, prices rise, and we're seeing that happen all over the country. Inventory contraction also brings about another problem: There are more buyers competing for fewer homes. The current real estate market calls for different strategies than you might have used in the past. Let's take a look at some of the ways you can become more competitive in a seller's market.

Talk to a Lender

Getting pre-approved for a mortgage does a lot more than show you how much home you can afford. It also shows a seller that you are a serious buyer and that the transaction won't be held up because of financing. Faced with a buyer who is pre-approved for a mortgage and one who isn't, the pre-approved buyer will typically win. Don't be confused between pre-qualification and pre-approval. Pre-qualification just lets a buyer know how much of a loan he or she might get, without relying on documentation. A loan pre-approval, on the other hand, is based on the buyer's income, assets and credit and thus tells a more realistic story. See a lender and ask for a letter of loan pre-approval. You'll submit that letter with your offer, giving you the edge over those who haven't taken the time to follow this step.

Your Real Estate Agent

Successfully dealing with multiple offer situations takes experience. An experienced real estate agent can counsel you on how to structure your offer, give advice on how much to offer the seller, and advise you about the pitfalls. Compass Home Group is there for you and will be sure that your offer is in line with making sure you meet your goals in your home purchase! Contact the Compass Home Group today by calling 443-360-0086.  Continue reading this article here and make sure to register for more valuable information on the Maryland Real Estate market.  Learn about the contract terms that should be added, and taken out of a competing offer, make it personal by writing a hand written note and more ways to make sure your contract gets accepted.