How to Win in this Market and Get Your Offer Accepted

By Kyle Koller

Producing Branch Manager of UMortgage West - The #1 Producing Team at UMortgage

You finally found the perfect home but found out that multiple buyers are eyeing the same property. How do you get your offer accepted in today’s highly competitive real estate market? As a lender, I’ve helped homebuyers navigate this market successfully, and today, I’ll break down three key strategies that will give you a competitive edge.

1. Speed solves everything. In a fast-moving market, the best homes are snatched up quickly, so acting fast is essential. You should get pre-approved before house hunting since a fully underwritten pre-approval shows home sellers that you’re serious and financially prepared.

To enhance your offer, propose a two-week closing. Quick closings are attractive to sellers and can make your bid stand out, sometimes even more than higher ones.

A bridge loan could be ideal if you need to buy a new home before selling your current one. This short-term loan allows you to use the equity in your current home as collateral, covering up to 80% of both properties’ value. While it comes with a higher interest rate, it’s temporary and perfect for homeowners with strong equity who want a smooth transition without the hassle of moving twice.

2. Understand which loan programs fit you. Many buyers choose options that don’t align with their needs, like choosing a conventional loan when an FHA loan might be a better fit. It helps to sit down with a loan officer to explore your options. Your aim is to align your financing with your goals and timeline so you can act quickly when the right home comes along. Here’s a quick guide on how these loans work:

• Conventional loans. Fannie Mae or Freddie Mac backs these and are ideal for buyers with strong credit and stable income. They often offer lower rates compared to short-term loans like bridge financing.

• FHA, VA, and non-QM loans. FHA loans are great for those needing lower down payments, VA loans offer excellent benefits for veterans, and non-qualifying mortgages (non-QM loans) are tailored for self-employed individuals or real estate investors.

3. Use a 2-1 temporary buydown. This is great to help you start with lower mortgage payments. Here’s how it works: you can lock in your current interest rate and get a 2% discount for the first year and a 1% discount for the second year. After that, you’ll pay the regular rate for the rest of the loan. This is easier on your budget, plus sellers can sometimes pay for this discount, making your offer more appealing.

For example, if the rate is 7.5%, you’d pay 5.5% in the first year and 6.5% in the second year. It’s like getting a little extra money back. If you refinance your loan within those two years and still have some discount left, you can get that back.

In 2025, this strategy will benefit buyers who want lower payments while waiting for interest rates to drop. You can refinance to get an even better rate if rates go down. The 2-1 buydown helps you manage your payments better when rates are high and makes settling into your new home easier.

Success in real estate hinges on acting quickly, selecting the right financing, and structuring your offer effectively. Whether upgrading, downsizing, or relocating, I’m here to help you create a winning strategy to get your offer accepted. While I primarily serve clients in Utah, we operate nationwide. Feel free to contact (801) 687-2018 or kkoller@umortgage.com. I’m looking forward to talking with you!