Securing the property you’ve set your sights on can be challenging as the market and a lower interest rate have allowed for more buyers and therefore more competition.
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The new year is in full swing and if you are looking to purchase your dream home in 2025 with the huge amount of competition, making sure your offer stands out is vital.
Cobus Odendaal, CEO of Lew Geffen Sotheby’s International Realty noted that securing the property you’ve set your sights on can be challenging as the market and a lower interest rate have allowed for more buyers and therefore more competition.
He added that in order to increase your chances of success, buyers need to make an offer that stands out from the crowd.
“When multiple buyers are interested in the same property, sellers are not only looking for the highest bid, they’re also considering other factors like the buyer's financial stability, the ease of the sale, and their willingness to close the deal quickly,” Odendaal said.
Odendaal explained that by employing a few key strategies, a potential buyer can enhance the attractiveness of their offer and position themselves as the ideal buyer.
Here are his tips for 2025:
He said that you should start with a good first impression as it matters, especially in a competitive market.
“When you make an offer on a property, it’s not just about the price; it’s about how you present yourself as a buyer. A strong first impression can set you apart and make the seller more inclined to accept your offer,” he noted.
Odendaal emphasised that hiring an experienced agent who knows the local market can give you a significant edge as they can help you craft a compelling offer, understand local pricing trends, and, very importantly, negotiate effectively on your behalf.
“Additionally, a reputable agent can vouch for your reliability and credibility, which can reassure the seller from the get-go.”
The real estate expert said that in a” hot market”, one of the most straightforward ways to make the offer stand out is to submit a competitive price.
“Sellers are often motivated by the highest offer but, be careful not to overbid to the point where the price exceeds the home’s market value as this could put you in a difficult financial position later, especially if the market cools down after your purchase,” he explained.
He said that a buyer needs to know the market value in order to make an informed offer.
“It’s important to have a solid understanding of the property’s market value. Your real estate agent can provide comparable sales data (known as “comps”) for the area to help guide your decision. Additionally, taking into account the home’s condition, location, and any improvements will help you determine a fair offer.”
Odendaal said that if the home is in high demand with several interested buyers, offering slightly above the asking price can increase the buyer's chances of success.
“However, do this only if you're comfortable with the price and after doing thorough research to ensure you’re not overpaying,” he warned.
Odendaal said that flexibility on the transfer date can be a key factor in swaying the seller.
“Some sellers may want to close the deal quickly, while others may need more time to find a new home. so, offering flexible terms shows that you’re willing to work with the seller’s timeline,” he advised.
“If you have the ability to be flexible with your move-in date or offer a quicker transfer, it may make your offer more attractive as a seller may prioritise buyers who offer convenience and certainty over those whose offers come with conditions that delay the process."
Lastly, he said that in a competitive market, properties can sell quickly, sometimes with multiple offers in a matter of days, so being prepared to act fast is essential.
Odendaal noted that a serious buyer should move quickly with their offer.
He said that if a buyer finds a property they are interested in, don’t hesitate to make an offer and submit an “earnest money deposit”.
“Submitting a deposit can show the seller that you’re serious and committed to the purchase. This is typically a small amount of money (1% to 3% of the purchase price) held in escrow as a sign of good faith. so if you back out of the deal without a valid reason, the seller keeps the deposit,” he explained.
“Offering a higher deposit than usual can give the seller peace of mind that you’re financially stable and unlikely to back out of the sale.”
Finally, Odendaal said that if you adopt some of these strategies and work closely with a skilled and knowledgeable agent, a buyer will generally have a better-than-average chance of beating one’s competitors and securing the property.
IOL BUSINESS
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