Before You Make An Offer, Here Are 4 Tips For Success!
With these four tips in mind you will be better prepared to make a successful offer.
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’ 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.
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 homes.
Make a Solid Offer
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.
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.
Happy House Hunting!
Source: Freddie Mac