5 Ways to Win in an Extreme Seller’s Market in 2021

The real estate market is tricky for buyers in 2021. There are way more buyers than there are houses on the market. That gives a big advantage to sellers because the demand is so high. There’s often multiple buyers going after the same house at the same time. But that doesn’t mean that buyers should give up. You just have to be prepared and find a way to set your offer apart. Keep reading to find out five ways to do that.

1. Have Proof of Funds & Pre-Approval Ready

You can’t make an offer on a home without proving you have the money to do so. You’ll want to get your pre-qualification done before you start going on showings. This can speed up the process because you already have the documents and can put in an offer ASAP. We recommend using a local lender because they know the area very well and have a lot experience with transactions in Philadelphia.

GET PRE-APPROVED

2. Be Prepared to Make an Offer Fast & Possibly Pay More than the Asking Price

Inventory is at record lows and demand is high. You’ll need to bring your highest and best offer to be in the running. This is not the time to make a low offer and see what happens. There is so much competition and a full-price offer might not even cut it. You will likely have to offer above the asking price to make your offer strong enough to beat out other bids. Homes are also selling extremely fast. That likely means you’ll have to make your decision to put in a bid or not very quickly - maybe even the same day that you see the home.

3. Make Your Offer as Clean as Possible

You want to make the offer the most appealing to the seller. You might want to consider making your offer free of seller concessions. That means you wouldn’t ask for the seller to contribute things like closing costs. You also could consider giving up your inspection to make your offer very competitive. However, you’ll have to understand the risk you are taking by doing that. Another option is to waive the appraisal contingency, but you can only do that if you have the cash to cover the difference if the offered price is higher than the appraised price. Finally, you could add an escalation clause to your offer. This is when you offer X amount of dollars, but say if another higher offer comes in, you’ll increase your offer to Y.

4. Get an Excellent Real Estate Agent

Having a realtor is essential to help you negotiate, understand the process and utilize their connections in the industry. A real estate agent is a local expert in your corner that knows the area like the back of their hand. They can often find out when new listings are going to hit the market before they do. That can give you a head start in the process. They will help you decide when it’s a good idea to go all in on your offer, or when you might want to reconsider. They know what red flags to look out for on a property. A great realtor is a top priority to win in a seller’s market!

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5. Keep an Open Mind and Don’t Give Up Hope

We know it can be stressful and frustrating when you continuously get beat out by other offers. You might be tired of the process and just feel like giving up. But don’t lose hope! There is a home out there for everyone. It just might take more time than you expected it to. You also want to keep an open mind. Don’t get too fixated on just one home. You could also consider expanding your search to more neighborhoods. At Venture Philly, we are here to help you every step of the way to find your dream home!

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