Ready To Make An Offer? 4 Tips For Success
So you’ve been searching for that perfect house to call a ‘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!
Freddie Mac covered “4 Tips for Making an Offer” in their latest 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’ really should 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 home.
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.
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 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 inspection uncovers undisclosed problems or issues, you can discuss any repairs that may need to be made, with the seller, or cancel the contract.
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!
Home Buyer Tips
- 5 Reasons Home Ownership is a Good Financial Investment
- 2 Myths That May Be Holding You Back From Buying
- Do’s and Don’ts During The Loan Process
- FHA 90 Day Property Flip Waiver
- Getting a Mortgage: Why So Much Paperwork?
- How to know if it’s a condo?
- Ready To Make An Offer? 4 Tips For Success
- What You Need To Know About VA Loans
- The Perfect Home Loan Application
- Look for a Luxury Home? Now’s The Time To Act!
- Condo Loans - Low Down Payment
- How We Safe Guard Your Information
- Mortgage Insurance
- Niche - Unique Mortgages
- Path 2 Buy
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- Rising Rent - No Problem
- Student Loan Debt
- The Mortgage Process
- USDA-Wide Open Spaces
- FHA “Back-To-Work: Extenuating Circumstances” Program
- FHA 203k Streamline Rehab Loan
- HUD-184 Native American Program
- Jumbo Loans
- Reverse Mortgage
- Veterans Assistance Loan Benefits
- HomeStyle Renovation
- 3 Reasons Why First-Time Home Buyers Love FHA
- FHA - Home Ownership Opportunities
- FasTrac Approval Process
- Home Ready Program
- Jumbo Plus Loans
- Loan Programs - Pros & Cons
- Why Pre-Approval Should Be Your First Step
- Where Are Interest Rates Headed?
- The Power of Pre-Approval for Agents
- How Low Interest Rates Increase Your Purchasing Power
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- Discount Points vs Premium Pricing
- Duplex Financing Options
- FICO Scores
- Flipped Property Finance Options
- Jumbo - Credit Challenged
- No Lender Fees
- Union Advantage
- FHA - Benefits
- FHA - Credit Requirements
- FHA - Limited Savings
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- Family Opportunity Program
- Fannie Mae - 97% LTV
- HomeScout: Your Unfair Advantage
- Jumbo - Medical Loan Program
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- NHF Platinum - Down Payment Assistance
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