Soooooo you’ve been searching for that “perfect” place to call home and you finally found it. Next step is to make sure you make an offer hood enough to get the seller to accept yours. Here are 4 tips to make an effective offer.
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. As we’ve mentioned in previous posts, 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.” In DFW, the lower priced homes ($100s) are being purchased left and right by cash investors.
According to the latest Existing Home Sales Report, the inventory of homes for sale is currently at a 3.7-month supply; this is 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 your agent to present it as soon as possible.
Freddie Mac offers this advice to help make your offer the strongest it can be:
3. MAKE A SOLID OFFER
“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 your agent 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.
DREA’S TWO CENTS
Whether you’re buying your first home or your fifth, having a Realtor on your side who is an expert in their market is your best bet in making sure the process goes smoothly. It’s important to do a consultation and be prepared for whatever may come along in the home buying process.
Happy House Hunting!
P.S. Want a one-on-one conversation? Go to atfowlerrealtor.appointy.com to schedule an appointment with me. In the meantime, find your home at NewAvenueRealty.com.