We have indeed been experiencing a bustling real estate market here in Pittsburgh. Homes are still selling quickly with multiple offers. Sellers are ecstatic, but some buyers are becoming frustrated.
When you find the home of your dreams, what should you do to win against other competing offers?
Although I don’t have a crystal ball to know what offer will win the bid, I have some ideas on how to navigate this hot market.
Here are 5 tips to help you come out on top when you enter a bidding war:
Get A Pre-Approval
Meet with a lender and provide all the information they need to do a thorough pre-approval. Taking this step is essential for several reasons. First, you know you are looking in a price range you can afford. Second, being able to provide the seller with a pre-approval letter from a reputable lender is usually required to have your offer considered. And lastly, when the lender has your information collected upfront, and in their system, the processing of your loan will move more quickly.
Know The Market
Educate yourself on recent sales in the area you are looking. Prices have been escalating in our area due to the inventory of homes being so low. It would be best if you crafted your offer with a realistic idea of the prices of recent sales in the area. Your real estate agent can help you with this research.
Carefully Consider Your Offering Price
If the price you are offering is too high, the seller may not accept the offer for fear the property will not appraise at that price. A low appraisal may create another negotiation on the price that the seller would like to avoid. When you are competing with other offers, it is best to go in with your highest and best offer. It is not time to try to get a bargain and low ball the seller. You will need an experienced real estate agent to guide you through this decision.
Consider Which Inspections to Choose
Some buyers have felt that skipping the inspection process altogether would help them get their offer accepted. There are different types of inspections that include, home, pest, radon and camera sewer. Many times, the items found in a home inspection are things the seller did not know, but they can be significant items. You can help ease the seller’s mind that you are not going to nitpick the inspections. It is also a good idea to keep the inspection timeframe as short as possible based on the availability of home inspectors.
Provide Ample Hand Money
Hand money or Earnest Money will be submitted at the time an offer is accepted. Your hand money will be held in an escrow account with one of the brokers or the title company. This amount will be deducted from the amount of money you will need to bring to closing. The amount of hand money you put down shows the seller your sincerity in purchasing their home. It assures the seller you will not back out of the offer without a valid cause.
Winning the offer when there are competing offers is a tense time for a buyer. Preparing yourself before looking at homes is key to a successful home search in our current Pittsburgh real estate market.
The first step is to find an experienced real estate agent who can help you structure a winning offer. For over 17 years, I have been helping buyers and sellers reach their real estate goals in Pittsburgh. I have recently helped several buyers navigate this seller’s market and have some other techniques that help put their offers ahead of the game!
I can guide you through the process with the experience and education I have gained throughout my career. You can rely on my expertise.
Call me today to schedule a free consultation to see how I can help you. I look forward to handing you the keys to your dream home! Contact me by phone at 412-848-3907 or email at kim.henderson@pittsburghmoves.com.