Making a Competitive Offer: 5 Tips for Brevard County Homebuyers

In real estate, everything is negotiable! 

...And making a competitive offer in today's market is especially important. 

You can ask for exactly what you want. Sometimes you will get it, other times you will not, but the option is always there. However, in the current real estate market of low housing inventory and high buyer interest, it is more important than ever to understand the ins and outs of making a competitive offer.

The following are five key tips for success to making a competitive offer in Brevard County. 

1. Understand Your Finances

The best way to show a seller you are a serious buyer is to know your finances and the best way to do this is to speak with a lender BEFORE you begin looking for your new home. Your local lender will tell you exactly what you can afford and what loan will work best for you. Prospective homebuyers making an offer will want a pre-approval letter from their lender when making an offer to purchase. Some sellers require it, but even if they don't, make sure to have it accompany your offer in order to stand out from the other offers. A pre-approval from a trusted local lender shows the seller you are serious about purchasing and you are qualified to purchase their home. 

2. Be Ready to Move Quickly

The average home sold in today's market is receiving multiple offers in a very short period of time. In this competitive market it is important to stay vigilant in your home search. As soon as you find the perfect home for your needs, be prepared to work with your agent to submit your offer as quickly as possible. 

3. Make a Fair Offer

It is natural to want to get the very best deal when purchasing your new home. However, submitting an offer that is too low in this market could be the difference between your offer being accepted and having to find another home. You want the seller to know you are a serious buyer. You don't want your offer to be thrown out as soon as it is received. The expertise your agent brings will help you stay competitive by sharing with you the home's market value based on the condition of the home and the recent sales in the area. 

4. Accommodate the Seller as Much as Possible

To make your offer stand out even more among the rest in this market, make the offer appealing to the seller. Keep the offer as clean and simple as possible with the fewest contingencies possible. This will help get your offer approved by the seller and may help if you get involved in a multiple offer situation. Remember, sellers are looking for the BEST offer and that doesn't always mean the highest offer. 

5. Shorten Your Terms

While some contingencies are fairly standard such as financing, home inspection, and appraisal, if you want your offer to stand out even more, consider shortening the terms of contingencies. You have your pre-approval letter and should have all your necessary paperwork into your lender. This will ensure your loan moves as quickly as possible and the appraisal can be ordered sooner. As soon as your offer is accepted, schedule your home inspection. Homebuyers can present a clean offer to sellers by exercising due diligence early on in the buying process as well as shortening the terms to any contingencies they must have. 

Bonus Tips

When you know it is the home of your dreams, be flexible in your negotiations and allow your agent to guide you through the process. 

If you really want to stay on top, include an escalation clause. This means the contract would state you will purchase home for "x" price, HOWEVER, if a higher offer comes in, you will increase your purchase price in "y" increments up to a certain price point. 

Having extra cash in today's market can be a huge advantage. Many homes are going ABOVE asking price and if you are in a position to waive the appraisal contingency - meaning if the home appraises below your asking price, you are able to pay cash for the difference. (This only applies to buyers taking out a loan and only if feel comfortable with this approach.)

Today's competitive market makes it more important than ever to submit a strong, clean offer with little to no contingencies. These tips along with your agent should help you submit the best offer and increase your chances for your offer being accepted and purchasing your new home.