What NOT to do when submitting an offer

Want to be competitive in the real estate market? Follow these tips:

1. Don't just take a chance, know the market. How fast are homes going under contract? What percent of list are they selling for? What's the average price per square foot? How much inventory is out there? What comps are available? There's more to it, but information is power. This leads into my next point.

2. Where is the power? Is it a seller's or buyer's market? With inventory as low as it was in the #bitterrootvalley, sellers definitely had a ton of power. With the normalization of the market, we're seeing buyers have the opportunity for more negotiating. Some trends we're experiencing are buy down credits because the mortgage rates are rapidly increasing. We're also seeing a ton of price reductions, and the likelihood of a property selling for the listing price is much lower than the last two years. In fact, we're seeing many properties sell for 97.8% of list as of September 2022, whereas in September of 2021 that percentage was 99.7%.

3. Don't be ridiculous. How competitive is your offer? Are you asking for contingencies left and right? Do you have to sell a home in order to purchase this one? Are you pre-approved? All of these factors, and more, play a part. Make sure you're prepared to jump if something you love becomes available.

4. Don't try and do it solo. Surround yourself with valuable experts in their field. Make sure you employ a #realestateagent or #realestatebroker that is an expert in their area and field. If you need financing, make sure you have already established a relationship with a lender and you're pre-approved. Even go as far as talking with your insurance company about any potential homes you're looking into. Yes, you may have more time with the increased days on market, but a desirable home is likely desirable to others as well, not just yourself. Be prepared.

5. Get creative. With limited options, think outside the box. Can you find a property with the land size you want, but the house is ehhh? Maybe compromising is in order. Think about options and try to maintain a sense of flexibility.

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