5 Tips For Making A Competitive Offer


So, you’ve been searching for that perfect house to call ‘home,’ and you’ve finally found it! The price is right, and in such a competitive market, you want to make sure you make a good offer so that you can guarantee that your dream of making this house yours comes true!
Below are 5 steps to help buyers make offers, along with some additional information for your consideration:

1. Get Pre-Approved

“You’ve found the perfect home and you’re ready to buy. Now what? Your real estate agent will be by your side.  You will also want to build a relationship with a reputable mortgage lender."

In todays real estate market most areas have been experiencing sellers market based on very low inventory of available homes.  Many areas have half the inventory needed to be considered a balanced housing market.  Because of this, you very well may face a multiple offer situation when you find the perfect home.  Getting a pre-approval not only makes you a more attractive buyer to the seller, but many listing agents will advise their clients to require a buyer to be pre-approved prior to submitting an offer.  

2. Determine Your Price

 "A knowledgable real estate agent will know how to put together a comparable market analysis to helping you determine an offer price that is fair.  The analysis report will compare recently sold properties close to the home you like to determine if the asking price is fair”

Based on your agent’s experience they will help you to determine the offer that you are going to present does not exceed the value of the home you have fallen in love with.  Another safeguard is to make sure there is an appraisal contingency in place which specifies the home must appraise for at or above the contract price.

3. Submit an Offer

“Once you’ve determined your price, your agent will draw up an offer, or purchase agreement, to submit to the seller’s real estate agent. This offer will include the purchase price and terms and conditions of the purchase.” 

Talk with your agent to find out if there are any ways in which you can make your offer stand out in this competitive market! A licensed real estate agent who is active in the neighborhoods you are considering will be instrumental in helping you put in a solid offer.

4. Negotiate the Offer

“Oftentimes, the seller will counter the offer, typically asking for a higher purchase price or to adjust the closing date. In these cases, the seller’s agent will submit a counteroffer to your agent, detailing their desired changes, at this time, you can either accept the offer or decide if you want to counter.  Each time changes are made through a counteroffer, you or the seller have the option to accept, reject or counter it again. The contract is considered final when both parties have agreed to everything and signed the written offer.”

If your offer is approved, it is imperative for you to  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 even cancel the contract altogether.  Not all states require home inspectors to have any certification or special training.  The two certifications to inquire about are ANSI and Internachi.  Speak with your agent to verify you are getting a home inspector that can be trusted to provide you with accurate information.

5. Act Fast

The inventory of homes listed for sale has remained well below the 6-month supply that is needed for a balanced 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 quickly as possible.

Bottom Line

Whether buying your first home or your fifth, having a local real estate professional who is an expert in his or her market on your side is your best bet in making sure the process goes smoothly. Let’s talk about how we can get you started on the path to homeownership!

Comments

Popular Posts