4 Tips for Effectively Making an Offer
So, you’ve been searching for that perfect house to call a ‘home,’ and you finally found one! 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 latest Executive Perspective. Here are the 4 tips they covered along with some additional info for you to think about:
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.”
You’ve heard this from me before – 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’ll also need to know if you are prepared to make any repairs or updates that may need to be made to the house (ex: new flooring, updated master bath).
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.”
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 let me know so I can get it written up and presented asap, so we have the best chance at getting you that home!
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 about ways we can make your offer stand out in this competitive market! Of course, offer price is paramount, but there are many other parts of an offer that might make a difference to a seller and might cause your offer to be chosen above any others. Once you want to make an offer, I’ll call the listing agent and ask point-blank if there’s anything that the sellers need or want that we could provide…that kind of conversation that might provide some “inside information” can make a huge difference!
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.
I am there every step of the way to provide you guidance on the counteroffer and making sure that the agreed-to contract terms are met.”
My advice with these counterpoints, is simple – don’t sweat the small stuff. If the counter points are reasonable and aren’t deal-breakers, agree to them and get that house under contract asap! At any point up until all point of an offer are agreed to, and that offer becomes an “executed” contract, another buyer can come in, make an offer, and get that house under contract. So, be prepared to make quick decisions on counterpoints, and get that home!
Whether you’re buying your first home or your fifth, having a local professional on your side who is an expert in their market is your best bet in making sure the process goes smoothly. Let me be that expert to help you out. Call or text me at 214-549-7978 and let’s do some HAPPY HOUSE HUNTING together!