Multiple Offers: 3 Tips for Your Best Shot
Buyers in 2021: “I’ll wait til the market cools down.”
The Market in 2022: “LOL.”
Well friend, the bad news is that Winter 2021 brought a squeeze in the ole’ inventory. Add that reduced inventory with increasing interest rates and the combo seemed to light a fire under buyers. You know what they say about supply and demand… The end of this year’s first quarter brought us higher prices AND higher interest rates.
Canopy MLS’s latest report** shows that Rowan County home prices are up an average of 16.5% and inventory is down over 50% (comparing February 2021 to February 2022)! No wonder so many homes go into an all out bidding war!
We are predicting that with warmer weather and blooming flowers, home inventory levels will increase, helping those buyers who just can’t seem to get an offer accepted (if you’re one of those buyers, we know it’s frustrating)!
If you are one of those buyers, be sure to give yourself the best chance at going under contract with these 3 MUST HAVE tools in your pocket:
1. GET. PRE. APPROVED.
We know, we know… we all sound like a broken record here but it’s truly an imperative start to any home search in this weird market. Imagine finding the perfect home, everything on your wishlist- just the right location, bedrooms, bathrooms, backyard she-shed- and it goes under contract within a matter of HOURS while you’re filling out loan applications. So sad! Don’t let it happen to you. Be as prepared as possible.
2. Minimal Offer Contingencies
What’s a contingency? You know, back in the old days, homes used to sit on the market for more than a nanosecond and buyers could ask sellers for things like paying for some or all of their closing costs, providing a home warranty and making multiple repairs. Now? Not-so-much! Submitting an offer with as few terms as possible will help you compete against sometimes dozens of offers on a home.
3. Do the Work
Rather… hire an agent who will do the work on your behalf. Listen, it’s a tough time for even the most experienced agents to help buyers under the $325k mark right now (those all cash offers are tough to beat, ya’ll) but agents who will study reports and review comps at all hours of the day give you a fighting chance at winning an offer on the home that you want.
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** Current as of March 5, 2022. All data from Canopy MLS, Inc. Report provided by the Canopy Realtor® Association. Report © 2022 ShowingTime.