How First Time Home Buyers Can Stand Out in a Multiple Offer Market

The spring and summer market is in full swing with buyers bustling to find the right home.
Historically low interest rates coupled with low inventory on houses are creating a seller’s
market, resulting in bidding wars and homes closing over asking price. In this competitive
market it may seem impossible for first time home buyers to enter onto the property ladder.
Follow these tips to make your offer stand out as a first time homebuyer.

Have Strong Finances
In many markets around the country buyers are competing with cash offers. As a first time home
buyer, it is daunting to think of measuring up to a cash offer, or even comparing to existing
homeowners that have built up equity over time, but it can be done.
The best way to impress a seller is to have strong finances. Get pre-approved for a mortgage
before you start looking at homes. Save up a substantial down payment that shows a seller how
committed you are by personally investing your own money into the house.

Look At Homes Below Your Budget
In a market where multiple offers are expected, avoid looking at homes that are listed at the top
of your price range. A home with a listing price that is the same as your max budget gives you
no room to offer over asking, and will make your offer undesirable from the start. If your pre-
approval is for $450,000, look at homes that are listed at $425,000 and below. This gives you
room to increase your offer over listing price and be competitive with other offers.

Put Your Best Offer Forward
Many first time homebuyers enter the housing market with the idea that they are going to get a
great deal. Resist the temptation to put in a low ball offer in hopes of negotiating with the seller.
Put your best foot forward from the beginning to show sellers how serious you are about buying
the house and to avoid being outbid by other potential buyers.

Avoid Asking for Concessions
A big mistake that many buyers make in a multiple offer scenario is asking for too many
concessions. Seller concessions typically cover some closing cost expenses for buyers.
However, in a seller’s market it is highly unlikely to have sellers who will entertain these
concessions, as it drives down their net profit from the sale. In addition to having money saved
for a down payment, make sure to save between 3-4% of the sales price for closing costs.

Work With A Trusted Real Estate Professional
Finally, the best way to stand out in a multiple offer market is to work with a trusted real estate
agent. A seasoned real estate professional will strongly advise you throughout the offer process,
allowing you to put your best foot forward. They will know how to engage with the seller’s agent
when it comes time to present the offer. They will also have an unbiased opinion about the
properties you are looking at and can guide you toward making a real estate investment you
won’t regret.

The real estate market is poised to see growth for several years and interest rates remain at
historic lows, so now is the best time for first time buyers to enter the property ladder. With
some financial preparedness and perseverance, buyers can find themselves entering into
homeownership with a house they can love for years to come.