home buying

Making an Offer? Four Tips for Success

You’ve found the perfect house to call your new home, making an offer can be an intimidating part of the buying process. In such a competitive market, you’ll want to make sure you make all the right moves so you can ultimately land your dream home.

Below are four helpful tips provided by Freddie Mac so you can feel the ease and confidence about making a solid offer on your next home.

IN SHORT:

Determine Your Price (i.e. comps in the area, condition of the property, and what you can afford).

Submitting an Offer (i.e. purchase agreement; price, terms, and conditions of the purchase)

Negotiate the Offer (counteroffers, Inspection, etc.)

Act Fast/ Time is of the Essence (growing up in a real estate industry family that is a term that has been embedded in my brain)

1. Determine your price

“You’ve found the perfect home and you’re ready to buy. Now what? Your real estate agent will be by your side, helping you determine an offer price that is fair.”

Based on your real estate agent’s experience and key considerations (like similar homes recently sold in the same neighborhood “comps”, the condition of the property, and what you can afford), your agent will help you determine an offer to present. Have confidence in your realtor, knowing that they’re guiding you in the right direction.

“T” TIP
Have you been pre-approved for a mortgage? (TIP: It’s good idea in today’s market!) If you have – you’ll be that much more prepared for this step. Pre-approval will show home sellers you’re serious about buying. Better yet pre-approval allows you to make an offer with confidence as it relates to your budget, savings, expenses, and more.

2. Submit an Offer

“Once you’ve determined your price, your agent will draw up an offer, or purchase agreement, to submit to the seller’s real estate agent. This offer will include the purchase price and terms and conditions of the purchase.”

Talking with your agent (or Tiffany with Coldwell Banker Realty) to find out ways to make your offer stand out in this competitive market. There’s nothing more beautiful than a “clean offer”

3. Negotiate the Offer

“Oftentimes, the seller will counter the offer, typically asking for a higher purchase price or to adjust the closing date. In these cases, the seller’s agent will submit a counteroffer to your agent, detailing their desired changes, at this time, you can either accept the offer or decide if you want to counter. Each time changes are made through a counteroffer, you or the seller have the option to accept, reject, or counter it again. The contract is considered final when both parties sign the written offer.”

To be transparent, this can be the time that leaves people on the edge of their seats. Good real estate agents will keep consistent communication going to between both sides.

INSPECTION
Your offers approved (WOO!), now what?… Freddie Mac urges you to “always get an independent home inspection, so you know the true condition of the home.”
If the inspector uncovers undisclosed problems or issues, you can discuss any repairs that may need to be made with the seller. Are there safety/hazardous issues, general maintenance that may need attention sooner than later? Then it doesn’t hurt to ask the sellers to fix “it” before closing. More than likely, the homeowners would have to tend to the issues if they weren’t selling. (food for thought!) One suggestion I make to clients, the inspection isn’t a time to renegotiate the purchase agreement.

4. Time is of the Essence

The inventory of homes listed for sale today remains well below the 6-month supply that constitutes a ‘normal’ market, especially at the entry-level. Homebuyer demand has continued to outpace the supply of homes for sale, causing buyers to compete for their dream homes.

Make sure as soon as you decide you want to make an offer that you work with your agent to present it as quickly as possible.

On that Note…

Whether you are buying your first home or fifth – ASK QUESTIONS! It is my job as a real estate agent to educate you on the fine print. A client should walk away excited about the purchase of their new home, happy with the process, and have learned a thing or two about real estate. Connect with me to talk about your needs and what you’re looking for to make sure your home buying process goes smoothly.