5 Things Homebuyers Need To Know When Making an Offer
What are you looking for in your new home? A place to call “home”? Well, it’s not easy finding that perfect house. You know there just aren’t many houses available today and the ones on offer have buyers fighting over them! Here are five things to keep an eye out for when making a bid:
1. Know Your Numbers
When determining how much house you can afford, it is important to know your budget and what type of loans are available. This step should be taken early in the homebuying process so that sellers see you as a serious qualified buyer who will not back out on negotiations at any time.
2. Brace for a Fast Pace
Today’s buyers and sellers have to be ready for anything. These days, a home is on the market an average of just 17 days before it sells! A skilled agent will help you stay one step ahead by alerting you about every possible opportunity with fresh listings as soon as they come up so that when your perfect match finally comes along, their team can get your offer in ASAP!
3. Lean on a Real Estate Professional
While home buying might feel overwhelming for some people, it’s actually just another transaction in today’s fast-paced world for most professionals who are trained at navigating these issues each day. The experience they’ve gained will help guide them through helping clients make better decisions about everything from price negotiation tactics to understanding how different factors affect value in their area (such as location).
4. Make a Strong, but Fair Offer
Let’s face it – we all love a good deal. In the past, offering at or near the asking price was enough to make your offer appealing to sellers. In today’s market, that’s often not the case. According to Lawrence Yun, Chief Economist at NAR:
“For every listing there are 5.1 offers. Half of the homes are being sold above list price.”
In such a competitive market, emotions and prices can run high. Use an agent as your trusted advisor to make a strong, but fair offer based on market value, recent sales, and demand.
5. Be a Flexible Negotiator
If you followed tip #3, you drafted the offer with the seller’s needs in mind. That said, the seller may still counter with their own changes. Be prepared to amend your offer to include flexible move-in dates, a higher price, or minimal contingencies (conditions you set that the seller must meet for the purchase to be finalized). Just remember, there are certain contingencies you don’t want to forego. Freddie Macexplains:
“Resist the temptation to waive the inspection contingency, especially in a hot market or if the home is being sold ‘as-is’, which means the seller won’t pay for repairs. Without an inspection contingency, you could be stuck with a contract on a house you can’t afford to fix.”
Now that you know how to make the best offer, let’s talk about what happens next. If you want more expert advice on making an offer or negotiating for a home, contact us today and we can help get your feet wet in this process with some helpful hints.