Competitive Offers – Right now the housing market is full of homebuyers looking for their next ideal home, and few ideal homes to choose from. With a large number of buyers all looking at those same desirable homes, it is a smart idea to be as knowledgeable about the home buying process as ever, especially when it comes to submitting a home offer. You want to submit one that is strong and will be seen, one that can compete with others. Here are some tips to making a successful home offer in today’s sellers’ market.
Hire an Expert Agent and Heed Their Advice
A recent article written by Freddie Mac gave some tips on making an offer in this highly competitive and slightly crazy sellers’ market. In their article they make sure to point out how emotional the home buying process can become in a highly competitive market and that a trusted real estate expert can help you to keep your head in the game and focused on what is important. They note that relying on your agent and letting them guide you in the process will help you to stay on track with your financial parameters while still finding a house with must-have items you need in your new home. They can be your level-headed source of stability in the process.
Know Your Personal Finances
It is crucial to understand your budget down to the last penny and realistically know what you can comfortably afford to pay on a monthly basis for a home. Look over your monthly expenses and determine how much of what is left over you would be willing to spend on a home. Don’t tap out every last penny to afford a bigger house, make sure to leave some space for living with less stress. You don’t want to find yourself saving for two months to buy a new t-shirt when you need one.
The next step is to get pre-approval and know what a bank will lend you. Keep in mind they may lend you more than you thought you would qualify for right now especially if you have great credit and low debt to income ratios. Make sure to stick to the number that will keep you on track with that ideal monthly payment. Then obtain a preapproval letter. Providing a copy of this in your formal offer paperwork will go far. It presents that you are a solid buyer with a strong chance of finalizing a loan and are serious about buying the home.
Be Ready to Move Fast on Competitive Offers
The average home in today’s market is receiving three offers according to the National Association of Realtors as reported in their Realtors Confidence Index. Homes are also only on the market for a few weeks after being listed right now. As soon as you find a home you see yourself living in you will need to make an offer quickly and be readily available for fast responses when your realtor calls to stay competitive.
Make a Fair Offer
When buying a house we are all looking to make the best investment and receive the best deal possible, but you do not want to come in too low under the list price when submitting an offer on a home. Freddie Mac advises that submitting a low offer can lead the seller to think you are not serious about buying the home and will get tossed out without a further look. They advise to discuss your thoughts on the price you want to offer with your agent. Let them help you make an informed offer based on fair market values, the current condition of the home, and recent sales in the area.
Be Ready to be Flexible in Negotiations
After your formal offer is sent to the sellers they have the option to fully accept it, fully deny it, or offer a counter. In this competitive market it is important to be flexible and understanding about a counteroffer. Some ways to make your offer stronger is be willing to stay flexible with closing dates, and contingencies. One contingency you do not want to ever waive is an inspection, especially if you are planning to buy the home “as-is” where the seller has clearly communicated they will not be making any repairs at all.
In today’s market, it is more important than ever to present a strong offer, but you want to make sure you stay knowledgeable and strong and not get swept up in “winning” a house by paying too much or waiving inspections.
For information on Homes in Parkland, Coral Springs, and Boca Raton real estate. and surrounding areas please contact me any time. I specialize in helping buyers and sellers throughout our area including investors and retirees. Let me help make your next home purchase an easy one.
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