You may be correct if you believe the real estate market is weakening. But In the Chicago area, inventory is still rather low compared to the rest of the country.
This means we are still seeing many multiple offers. If you’re a buyer, you must be prepared for competition. If you’re a seller, it’s important to understand the process from the buyers’ perspective and set yourself up for success.
In this blog, I will talk about both of those things and give you the tips you need to win in any real estate market!
Ok, let’s get straight into it.
Get Pre- Approved by a local lender
You must be prepared for competition if you’re a buyer in today’s market. It’s not uncommon to still see multiple offers on a property, and sometimes there can be as many as 5 or 7 buyers competing against each other.
So how do you win in this situation?
The first thing you need to do is get preapproved for a mortgage. This will show the seller that you’re serious about buying the property and that you have the financial ability to do so.
Getting a pre-approval from a local lender is always your best bet-to-win offer. The very best lenders are also reaching out to the sellers and giving them a vote of confidence when your offer is submitted.
This step helps secure the closing. Listing agents and sellers want to feel confident that the mortgage will not be a problem when it comes time to close. Sellers are not only looking for the best terms but for peace of mind that the deal will close.
If you’re working with a real estate agent, they should be able to provide you with a list of local lenders that they recommend.
A seller with multiple offers will choose the best terms and the most likely to close. If the transaction doesn’t close, that extends the time on the market, and the property will likely sell for less.
Move Quickly
The next thing you need to do is be prepared to move quickly. In a competitive market, the seller will choose the buyer who can close on the deal the quickest. So if you cannot close quickly, you might want to reconsider making an offer on the property.
If you are a seller in a multiple-offer situation, pay attention to the buyers’ loan type and approval time frame.
Suppose there are two similar offers; one buyer is pre-approved with a conventional loan, and the other is still in the process of getting approved for an FHA loan. In that case, the seller will most likely choose the conventional buyer because they’ll be able to close on the deal quicker.
As a buyer, you should also be prepared to put your best foot forward with your offer. In some cases, this means offering more money than you originally planned, But if it means winning the property, it will be worth it in the end.
Keep Your Emotions in Check
Lastly- Keep Your Emotions in Check; it’s important to keep your emotions in check. In a competitive market, there will be times when you lose out on a property you want. It’s easy to get caught up in the moment and let your emotions take over, but you’re likely to make bad decisions if you do this.
When making an offer on a property, ensure you’re doing it for the right reasons. Don’t get caught up in a bidding war just because you think it’s what you’re supposed to do. Stick to your budget, and don’t let emotions cloud your judgment.
When you’re selling a property, don’t get too attached to it. It’s important to remember that it’s just a piece of property and that other homes are out there. If you get too attached, you’re likely to make poor decisions, such as accepting a low offer just because you don’t want to let the home go.
Conclusion
There are many things you can do to make your offer the most competitive it can be. Things like waiving contingencies, increasing earnest money, and being pre-approved for a loan can all help.
The bottom line is this: in a competitive real estate market, you need to be prepared.
Know what you want, do your research, and be ready to move quickly. If you do this, you’ll be in a much better position to win the property you want – whether you’re buying or selling.
But at the end of the day, it’s important to remember that you can’t control everything. Sometimes you’ll get lucky and win in a multiple-offer situation, and sometimes you won’t. Don’t let your emotions take over, and stick to your budget.
I hope you all got some value from this blog, and I hope you can put some of this into practice.
If you are looking into buying or selling real estate in the western Chicago Suburbs, feel free to give us a call, email, or book a consultation with us using the link in the description below.
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