The real estate market has truly been historic. Many anticipated the housing market to collapse because of the pandemic as states shut down and many became unemployed. In spite of this, the opposite happened. The government stepped in to stop foreclosures and used the power of the Federal Reserve to drop interest rates. Because of rock-bottom mortgage rates, the real estate market surged. Now we are in a seller’s market, so it’s important to be able to stand out. Bidding wars over houses and rentals are commonplace. Home buyers need every advantage possible in order to buy the house of their dreams. The team at Peoples Choice Mortgage is here to tell you how working with a professional mortgage broker can help you when it comes to making a perfect offer. 

Tips for Home Buyers to Make the Best Offer

In today’s competitive market, home buyers are under a lot of pressure to make the best possible offer. There are a lot of things to consider, from your own budget to being pre-qualified for a mortgage. Here are some tips to help you nail your offer the first time:

Keep Track Of Your Budget

If you want to purchase a home, it is critical that you know your budget when going into the process. Having an idea of what you can afford is important for your success as a homebuyer. One of the easiest ways to get help with your budget is to contact a lender who can get you pre approved for a home. Freddie Mac explains that having a preapproval letter shows that you are a serious buyer who is already approved. Without pre approval letters, you will also lose bidding wars. It is important to show sellers that you are serious so that you can act quickly. Getting preapproved could make the difference between getting your dream home or missing out. The first step is calculating your budget. 

Not only can a professional mortgage broker help you with getting pre-qualified for a mortgage, they can also help keep you on track. It is easy to fall in love with a house during the home buying process. Sometimes, home buyers will let their emotions take over and they end up making an offer that is more than they can afford. If your mortgage broker has your interests at heart, they will keep your eye on the prize. They will keep you informed about what your monthly payments will beand let you know if you are taking on more home than your budget allows. 

Act Quickly

Homes are being sold a lot faster than before, which is also contributing to how competitive the market currently is. The Existing Home Sales Report from the National Association of Realtors said the average home is on the market for only 17 days. It also reported that 89% of homes sold in July of 2021 were off the market in less than a month. Homes are selling much faster than before. This is why you have to be active in your search. After you have found your desired home, you need to submit your application and information as soon as possible. 

The combination of high demand and a small supply is driving up the price of homes. This creates incredible opportunities for homeowners. Homeowners can consider selling their homes and taking advantage of a seller’s market. They can also sit back and watch as the value of their homes increase, which would in turn increase their equity. Americans have already gained a lot of home equity over the past year because of how the market was. This should encourage homeowners and potential buyers to make moves in today’s real estate climate. The conditions of the market make it more competitive than ever, so you must act quickly.

This is one reason why it is important to speak with a mortgage broker before you meet with a realtor. You want to have your mortgage pre approval already processed before you look for a house to buy. This will allow you to act quickly when you find a house you like. Your realtor will not have to guess if a house is within your price range. They will know because your mortgage broker will have already helped you set your price range. 

Achieve the Balance Between Strong and Fair

If your offer is not strong and fair, it will be rejected. In the past, offering around the asking price would be appealing to sellers. This is no longer the case. The Realtors Confidence Index from the National Association of Realtors says that 50 percent of offers are above the list price. This shows how competitive the market is. Everyone is running to buy homes and anticipate the fight, so they try to one-up each other. Having a professional to help you create a strong and fair offer is essential for your success. A professional can help you understand the real market value of the home and the average sales price in the area. They can also assist with looking at buyer demand. Having the knowledge and data before making your offer will lead to a quicker and smoother transaction. 

Work with a Professional Mortgage Broker and Realtor

When buying a home, you want to start with the best chances for success. Freddie Mac says that the success of buying your home depends on “the company you keep.” They urge buyers to work with experienced professionals who can help make an informed decision. You want to have an expert mortgage broker and an expert realtor on your side. They will know all about how to get you the best offer and your dream home. Their insight will be valuable for your home buying journey. Your realtor will give you insight into your market. Your mortgage broker will help make sure you do not finance a home loan beyond your means. Together, they will guide you on your path to homeownership. 

Final Thoughts

Today’s market is extremely competitive. With houses being sold as soon as they come off the market, it’s important to respond quickly to opportunities with strong offers. Making the best real estate offer is not easy, but we are here to help. Working with an experienced mortgage broker who understands your market inside and out can be the difference between buying your dream home and not. If you are interested in buying a home, contact us! If you are interested in taking advantage of today’s red hot real estate market and want to buy your dream home, we are here to help. The team at Peoples Choice Mortgage is here to make your dream of buying a home a reality.