5 Tips for Making Your Best Offer on a Home
It can feel like you're caught between a rock and a hard place as a buyer in a sellers' market. When you're ready to make an offer on a house, keep these five simple things in mind to help you stand out from the crowd.
1. Know Your Spending Limits
Knowing your budget and what you can afford is essential for homebuying success. Working with a lender to get pre-approved for a loan is the best method to understand your figures. Freddie Mac puts it like way:
"This pre-approval gives you more confidence when looking for a home and shows the seller that you are a serious buyer."
Showing sellers you're serious can give you a leg up on the competition and allow you to act swiftly when you find your dream house.
2. Be Prepared To Move Quickly
In today's competitive housing market, homes are selling swiftly. According to the National Association of Realtors' (NAR) Existing Home Sales Report:
"In November 2021, 83 percent of homes sold were on the market for less than a month."
Staying on top of the market and moving promptly are essential when residences are selling so quickly. As soon as you identify the home you wish to buy, your realtor can assist you in putting together and submitting your best offer.
3. Count on a Real Estate Expert
Rely on a trusted real estate advisor regardless of the situation of the housing market. As Freddie Mac points out:
"The company you keep will have a big impact on the success of your home-buying trip. . . . Select knowledgeable, dependable individuals that can assist you in making educated selections and avoiding traps."
The local real estate market is well-understood by agents. They know what has worked in the past for other buyers in your region, as well as what sellers may be looking for in an offer. Although it may appear straightforward, responding to the demands of the seller can help your offer stand out.
4. Make a firm but reasonable offer.
According to the National Association of Realtors' newest Realtors Confidence Index, 40% of today's offers are over the list price. Emotions and prices can run high in such a competitive environment. In these cases, having an agent to assist you in submitting a strong, yet fair offer is crucial. Your realtor can assist you in determining the home's market worth as well as current sales patterns in the region.
5. Be a Negotiator Who Can Change His Mind
Your experienced real estate professional will assist you in determining which levers you may pull while putting up an offer, such as contract contingencies (conditions you set that the seller must meet for the purchase to be finalized). Of course, there are some things you don't want to miss out on. Freddie Mac clarifies:
"Resist the urge to waive the inspection contingency, especially if the home is being sold 'as-is,' which means the seller will not pay for repairs." You could be left with a contract on a house you can't afford to fix if you don't have an inspection contingency."
In today's competitive market, making a solid offer on a home is more vital than ever. Let's connect to make sure you get to the top as quickly as possible.