5 Tips to a Strong Offer
5 tips to a strong offer on your next dream home...
You've been looking high and low for the home of your dreams, and you FINALLY found one. You see the price is right, and in a market like ours, you want to make sure your offer is going to pan out and your dream of owning a home will turn into reality.
Freddie Mac recently covered this topic in their latest Executive Perspective that needs to be shared. Especially in our market with a lack of inventory, there will be strong offers on the table, so to avoid instant heartache, here are five ways you can prepare yourself:
1. Get Pre-Approved
“While it's not nearly as fun as house hunting, fully understanding your finances is critical in
making an offer.” This should be your first step, before you even start shopping in my opinion. 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. Move Quickly
“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. In Seattle, it's even more daunting- with less than a 2 month supply as of late. 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 Strong 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.”
4. Make your offer Stand Out
Consider ways of making your offer stand out! Many buyers write a personal letter to the seller letting them know how much they would love to be the new homeowners. Your agent will be able to help you figure out if there are any other ways your offer could stand above the rest.
5. Prepare 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 typically re-negotiate the terms 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!
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