If you’re planning to buy one of the Druid Hills homes on the market soon, you may very likely experience a situation where you’ll be competing against other buyers who are also trying to buy the house.
The Druid Hills real estate market is currently experiencing a strong seller’s market. This means there are more prospective buyers of homes than there are listings, and that competition is high. While the average home in this area sells for around the listing price and stays on the market for 18 days, a hot home can easily sell for above list price and get snapped up by a motivated buyer in 11 days or less.
If you want to compete in this type of market and land one of the Druid Hills homes that match your needs, you must be prepared to do what it takes to win in a multiple-offer scenario. Here are some tips.
In a seller’s market, those with Druid Hills homes listed for sale are unlikely to accept (or even consider) offers from those who have not already been pre-approved for financing. That’s why it’s important to obtain a pre-approval letter that you can take with you when you start looking at Druid Hills real estate.
The pre-approval process is quick, easy, and only requires proof of income, proof of assets, a good credit score (most lenders require a 620 or above for a conventional loan), employment verification, and various other items like a Social Security number and a driver’s license.
Not only does getting pre-approved ensure that sellers of Druid Hills homes take your offer seriously, but it also helps you get a better idea of how much you can spend, making the home search much more straightforward.
Be Prepared to Act Fast
When there are multiple offers on a home, the action can go fast — especially if it escalates into a bidding war. This means you need to be available at short notice to make counter-offers or escalate your bid, and you also need to have a budget in mind so you can quickly determine whether you can offer more or if you need to bow out.
In a multiple-offer situation, talk with your Druid Hills real estate agent about how they can best get a hold of you quickly and make sure your agent is available to the seller should they have questions or want to solicit a counter-offer. Hesitation is your enemy in this type of scenario, and not making a quick decision can mean losing the home of your dreams to a more motivated buyer.
Make Your Offer Fair and Clean
A seller’s market is no time to lowball sellers in the hopes of scoring Druid Hills homes for a deal. If you want a shot at a home, you need to make a fair offer that is at or just slightly below listing price with the understanding you will likely face multiple offers or a counter-offer from the seller.
In addition to making an offer with a fair price, you should also consider dropping common contingencies like those based on financing, inspections, or appraisals. Remember that not having contingencies in your offer opens you up to some risks, such as having two mortgages if your offer is accepted and you haven’t yet sold your current home. Talk with your Druid Hills real estate agent to weigh the costs versus benefits when you make your offer.
Offer More Earnest Money
Earnest money is like a deposit on a home. It shows the seller you are a good-faith buyer and reassures them you will not back out of the transaction. The typical amount of earnest money buyers put down on a home is between 1 and 5 percent. On a median-priced Druid Hills home of $689,000, that would amount to between $7000 and $35,000. If you want to make your offer more attractive and stand out from others making offers on Druid Hills homes, consider increasing this amount to 6, 7, or even 10 percent. If you win the bid, your money will go toward your down payment. If you don’t, you’ll get it back.
Make Your Offer in Cash
Sellers of Druid Hills homes like cash offers because there is less chance the deal will fall through if the buyer cannot obtain financing.
Making a cash offer means you are not seeking to obtain a mortgage or other type of financing to buy the home. You may be able to make a cash offer if you have a large amount of money sitting in the bank or if you’ve already sold your current home for as much or more than what your new home costs.
Making a cash offer not only increases your chances of winning the bid in a multiple-offer scenario, but it will also save you money in the long because you won’t have to pay interest on your home loan.
Work with an Experienced Druid Hills Real Estate Agent
In the current Druid Hills real estate market, it’s more important than ever to work with an experienced agent who can act as a partner and guide throughout the buying journey. If you are interested in a home that has gotten multiple offers, your agent can help you craft an offer that will get the seller’s attention and be by your side during the counter-offer or bidding war process. Your agent can also help you navigate the closing process should you succeed and have your offer accepted.
If you’re ready to start looking at Druid Hills homes, you need to be prepared to do what it takes to win in a multiple-offer scenario. Ready to take the next step? Reach out to a professional local agent like Molly Carter Gaines for assistance.