5 Ways New Homebuyers Can Stand Out
When buying a new home, there are tons of challenges that homebuyers can deal with. If the real estate market is highly competitive, new homebuyers may struggle to get the attention of home sellers, especially if numerous offers are on their tables. However, as a potential homebuyer, you can do an array of things to stand out from the crowds. Standing out strengthens your offer and increases your chance of getting a great deal.
Working with a great real estate agent is the first step to standing out, below we list 5 ways new homebuyers can stand out.
Get pre approved for a mortgage
If you want to have a competitive edge over other potential homebuyers, you should have a preapproval for a mortgage. A mortgage pre approval shows to a seller that you are serious about buying their home. Also, it allows them to know whether you can secure financing for the home or not. Consequently, getting a mortgage pre-approval will help you to get the attention of a seller much easier than a competing party that doesn’t have the pre-approval. A mortgage pre approval does require you to submit specific financial documents to a prospective lender. To ease the process, you should have these documents organized prior to the pre approval meeting.
Put down a larger down payment
Individuals selling their home are looking to get the highest price possible for their home and would love an all cash offer. This is why they prefer to deal with buyers who are able to show their financial strength through a substantial down payment. This means you can stand out from the crowd by offering to put down a larger down payment.
Ensure your first offer is your best offer
When making the first offer, many potential homebuyers tend to offer a much lower amount than they would be willing to spend on that property. This approach can help you secure a property at a great value when it is a buyer’s market, however in a market like what we are experiencing now, with multiple offers being submitted on almost every available property, this tactic will surely eliminate you from the running. If you want to stand out from the other potential buyers, you should lead with your best offer.
After seeing a listing for a home you like, take the time to consider whether it is worth the value or not. A home evaluator or real estate agent can help in this regard. Once you are certain the home is worth going all in on, make your strongest offer. This makes it easy for the seller to accept your offer over other potential offers, unless of course another bidder’s perceived value of the home is higher and offers more.
Get rid of any irrelevant contingencies
Real estate contingencies are clauses that allow you to end a deal and get a refund of your deposit if some conditions are not met. Some of the most common contingencies for homebuyers include inspection contingency, appraisal contingency, mortgage contingency, title contingency, and home sale contingency.
Although contingencies protect you as a homebuyer, they also make your offer less attractive to the seller. Therefore, if you want to stand out among other potential homebuyers, you may want to forgo some of the contingencies.
Inspect the home quickly
Many real estate markets allow potential buyers to take about 10 or so days for a home inspection. However, you can strengthen your offer by inspecting the home quickly. You are advised to inspect the house with a home inspector or real estate agent within a few days of submitting an offer. This will show your seriousness about buying the home.
In a seller’s real estate market, it may be difficult to find and buy the home of your dreams. You may need to make multiple offers before securing a home that meets your needs. Partnering with an experienced real estate agent and following the 5 tips highlighted above will help improve your chances of standing out from other potential buyers and securing the best home for your needs.
