by Maureen Bartelt, FMR Vice President | 20 Jul, 2022
1. Get pre-approved for a mortgage
Being pre-approved means your offer most likely has financial backing from a lender. If the only thing standing between your offer and a competing offer is whether or not you are pre-approved, the seller is going to take the pre-approved party 9 times out of 10. A pre-approval is the first or second step in your house-hunting process (only second to finding the professional who will help you identify the home you want to purchase).
2. Work with a REALTOR®
The key to home buying success is putting the right people together to get you to the finish line... a new home! Your REALTOR® can help you find a lender, an inspector, and even an insurance agent, in addition to helping you find the right home! Having an experienced professional on your side will make a world of difference when you're prepared to make an offer.
3. Make a solid offer
In a busy market, oftentimes, homes will go with multiple offers. When competing, it's important to be honest with yourself on what the home is worth to you. If you're ok with potentially losing the property and you aren't willing to offer full price, you'll still want to be realistic with your offer.
Remember: It's not always about the price. When putting together your offer, you'll also want to consider the terms (closing date, contingencies, etc.) that are most important to the seller.
Ask yourself if you would feel disappointed losing the home over a few hundred or even a few thousand dollars. If the answer is yes, bring your stronger offer to the table right away.
4. Limit your contingencies (where you can)
When you're looking at homes in a competitive market, one of the ways you can make your offer stand out from the rest is to limit the number of contingencies in your offer. Each contingency in your offer can be considered a hurdle in the seller's journey toward successfully selling their home. Common contingencies include financing, inspection, and sale of a buyer's property. These are all items that will be crucial in setting your offer apart from the competition.
5. Be Ready to Buy
When you find a home you love, you don't always have a lot of time to think about it. We know this can be intimidating, especially for first-time homebuyers. However, your REALTOR® is there to help guide you confidently through the process so you can move forward with confidence and don't end up heartbroken over waiting too long to make your decision.
FMR Vice President