So,
you’ve been searching for that perfect house to call a ‘home,’ and you
finally found it! The price is right, and in such a competitive market,
you want to make sure that you make a good offer so that you can
guarantee that your dream of making this house yours comes true!
Freddie Mac covered
“4 Tips for Making an Offer” in their
Executive Perspective. Here are the 4 tips they covered along with some additional information for your consideration:
1. Understand How Much You Can Afford
“While it’s not nearly as fun as house hunting, fully understanding your finances is critical in making an offer.”
This ‘tip’ or ‘step’ should really take place before you start your home search process.
Getting
pre-approved
is one of many steps that will show home sellers that you are serious
about buying, and will allow you to make your offer with the confidence
of knowing that you have already been approved for a mortgage for that
amount. You will also need to know if you are prepared to make any
repairs that may need to be made to the house (ex: new roof, new
furnace).
2. Act Fast
“Even though there are fewer investors, the inventory
of homes for sale is also low and competition for housing continues to
heat up in many parts of the country.”
The inventory of homes
listed
for sale has remained well below the 6-month supply that is needed for
a ‘normal’ market. Buyer demand has continued to outpace the supply of
homes for sale, causing buyers to
compete with each other for their dream homes.
Make sure that as soon as you decide that you want to make an offer, you work with me, your agent, to present it as soon as possible.
3. Make a Solid Offer
Freddie Mac offers this advice to help make your offer the strongest it can be:
“Your strongest offer will be comparable with other
sales and listings in the neighborhood. A licensed real estate agent
active in the neighborhoods you are considering will be instrumental in
helping you put in a solid offer based on their experience and other key
considerations such as recent sales of similar homes, the condition of
the house and what you can afford.”
Talk with me to find out if there are any ways that you can make your offer stand out in this competitive market!
4. Be Prepared to Negotiate
“It’s likely that you’ll get at least one
counteroffer from the sellers so be prepared. The two things most likely
to be negotiated are the selling price and closing date. Given that,
you’ll be glad you did your homework first to understand how much you
can afford.
Your agent will also be key in the negotiation process, giving
you guidance on the counteroffer and making sure that the agreed-to
contract terms are met.”
If your offer is approved,
Freddie Mac urges you to
“always get an independent home inspection, so you know the true condition of the home.” If the
inspector
uncovers undisclosed problems or issues, you can discuss any repairs
that may need to be made with the seller, or cancel the contract.
Bottom Line
Whether buying your first home or your fifth, having a local real
estate professional who is an expert in their market on your side is
your best bet to make sure the process goes smoothly. Let’s talk about
how we can make your dreams of homeownership a reality!
