Putting your best foot forward in a hot real estate market can make the difference between having your offer accepted or missing out. Here are some tips to help you stand out in a sellers’ market without putting your personal finances at risk.

Get pre-approved

Knowing how much you can afford to spend is key when shopping for homes in a sellers’ market. One of the best ways to do this is to apply for pre-approval from one or more lenders. The pre-approval process will provide you with a ceiling for what your budget will allow so that you don’t put in an offer on a house you won’t be approved for, or can’t afford the monthly payments on. Pre-approval also gives sellers confidence in your offer. Providing a pre-approval letter along with your offer shows you have the financial backing to take the deal to closing.

Submit your offer quickly

In a fast-moving market, there’s no time to hem and haw. The moment you know for sure that you want to buy a particular home, get your offer put together and submitted.

Work with an experienced local realtor

Working with a trusted realtor who knows and understands your local market can help you craft an offer that best suits the needs of sellers in your area and is in line with what other buyers are offering for similar homes.

Put together an offer that is strong, but fair

In a hyper-competitive market, as many as half the homes sell for more than their asking price. Knowing how much more to offer above the asking price isn’t easy. You’ll need to assess the following before making a final decision on your best offer:

• What is the true market value of the home compared to the asking price?
• What are recent sales trends in the area?
• How strong is current buyer demand?
• How much can you afford to pay over the asking price?

Resist waiving contingencies

When sellers have the upper hand, they may ask buyers to waive home inspection and purchase the home as-is. This is a red flag and something you should avoid. It’s better to risk having your offer denied than to purchase a home with big problems that you can’t afford to fix.

Don’t be afraid to walk away

If multiple buyers are bidding the price up out of your comfort zone, you may need to walk away. This can be difficult, especially once you’ve fallen in love with a home but you must recognize the difference between a strong offer and an unreasonable one.

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