Looking to buy a home this season? Here's what you should know.
Buyers have more leverage today than they’ve had in years. There are more homes to choose from and, in many areas, sellers are more open to negotiation.
But that doesn’t mean competition is gone completely. These days, it varies a lot depending on where you’re hoping to move.
If you’re buying in a popular neighborhood, or in a market where there aren’t many homes for sale, you may still find yourself competing with another buyer.
And that’s especially true in the Spring. Here's how to stay one step ahead of any competition this season.
According to experts at Zillow and Realtor.com, Spring is one of the busiest times of year to buy a home.
That’s because many buyers want to move now so they can settle in before the next school year. And when more buyers enter the market, competition naturally picks up.
So, depending on where you’re buying, you may still need to move quickly and make a strong offer, even though the market overall has moderated. And that’s especially true if you find a home you really love.
This is what you need to know to make your offer stand out.
It’s tempting to start low and negotiate up. And in some markets, that strategy can work. But if a home is priced well and getting attention, lowballing could hurt your chances.
Instead, focus on making an offer that reflects your local market. As Bankrate explains:
“There is no magic formula for an optimal home offer. Any offer will be heavily dependent on asking price and local market conditions . . . Your real estate agent will know the local market well and can advise what a competitive — but fair — offer will look like in your area.”
The goal is to make an offer that makes sense for you and stands out to the seller.
If you’ve fallen in love with a home, it’s important to have a plan in case there’s competition from another buyer. One strategy your agent may discuss with you is an escalation clause, which Investopedia explains like this:
“An escalation clause is a way to automatically escalate your bid by a certain dollar amount, up to a certain ceiling, to compete with other bids.”
The key is knowing your budget and sticking to it. You don’t want to lose out over a small difference – and this can help prevent that. But you also don’t want to overpay.
Keep in mind that if the appraisal comes in lower than your offer, you may have to make up the difference out of pocket. Your agent can help you weigh those risks and determine the best approach for your situation.
Price matters. But sellers also look closely at your offer’s terms. In some cases, a simpler, cleaner offer can stand out – even if it’s not the highest. As Redfin says:
“Sellers tend to want clean, straightforward offers with minimal strings attached. Keep your requests simple and focus on the essentials.”
Your agent can help you prioritize what matters most, so you’re not giving up things you need, while still making your offer as appealing as possible.
Sometimes, what helps your offer the most is understanding what matters to the seller. NerdWallet explains:
“As you prepare an offer, you tend to focus on what the seller has (a house) and what you want (their house). But you’ll gain a competitive edge by viewing the transaction from the seller’s eyes: What does the seller want?”
Does the seller need extra time to move out? Or do they want to move as soon as possible? Your agent can talk with the seller’s agent to find out what matters most. Flexibility here can make a big difference in how your offer is received.
Today’s market may be balancing out, but strong offers still matter – especially during the busy Spring season.
Working with a local agent can help you understand your market and put together an offer that stands out when it matters most.
