Our Real Estate Blog
If you’re in the market to buy a home, you want to find the perfect place for you and your family. In a seller’s market, the competition can be fierce. As a buyer, you may be under the impression that you need to make the highest offer in order to secure the home of your dreams. The problem is, you may never know what price other people have offered for the same home.
Know Your Budget
First, you should know what kind of a budget you have to work with to buy a home. You probably have done an online search to see what’s out there and what price range the homes you like fall into. You’ll want to go beyond the online search and actually see some of your favorite houses in person because pictures can be deceiving.
Next, you’ll want to do is speak with a lender. This can help you before you even hit the ground running on your home search. A lender can pre-qualify you then work you through the process of pre-approval. This will give you a definitive number to work with when searching for a home. With this number, you’ll know how much you can offer comfortably when you find that house you fall in love with.
Make A List Of Priorities
Finding the “perfect” house usually requires that you make a few compromises along the way. It’s very unlikely that you’ll find one house that gives you everything you want in one place without a bit of imagination. Jot down all of the things about a home that are the most important to you. These items could include:
- The neighborhood
- Big backyard
- Open floor plan
- Number of bedrooms
- Hardwood floors
- The size of the rooms
- Style of the house
- Granite countertops
Whatever is important to you should be on the list. Next, go through the list and see what can be compromised on. There are probably a few luxuries on the list that you could stand to give up in lieu of something else.
Once you find that home you know that you absolutely want to live in, you’re going to want to make an offer. Let your realtor know immediately that you’re interested in the home and they can get to work. Your realtor can help you to make an offer that’s reasonable based on the asking price and your budget. Your offer doesn’t have to be thousands of dollars over the asking price for you to win the bid. There are a couple of strategies that can help you to land the right home even if you’re not stretching your budget to the max.
Showing You’re Serious
Taking steps like being pre-approved and having all of your finances in order can help to give you the upper hand in the house hunt. Sellers don’t want to deal with a buyer who is ultimately going to have issues where the deal will fall through.
The Offer Letter
Writing a letter along with your offer is a great personal touch to help you land the home of your dreams. If a seller knows that the home they have lived in and loved will go to another owner who is going to appreciate and take the same great care of the home, they will be more likely to go with you as a buyer. First, tell the seller a bit about yourself and why you love the home so much. Compliment the landscaping. Tell the seller just how much your kids are going to appreciate living in the home. Don’t be afraid to get too personal when it comes to writing an offer letter to the sellers. They will appreciate honesty and a candid approach in the sometimes all too serious matter of buying a home.
Putting an offer on a home is an exciting event. You don’t want to get so excited that you overlook the important factors that go into buying a home. Follow the tips below before you put an offer on a property.
In order to come up with a price to offer on a home, you need to do some research. You should have a general understanding of the local market. Although your realtor will have a good grasp on this, it’s always a good idea to be an informed buyer. You can work with your realtor to find the right price. You don’t want to blurt out a number that is completely out of line for the neighborhood or market conditions.
A good place to start is by taking a look at what the homes in the the neighborhood are selling for. You can also look at what homes in the area have recently sold for. The advantage to hiring a realtor is that they have easy access to all of this research and information. Be sure that the properties that you look at are comparable to the one that you hope to put an offer on. You can even do this ahead of time if you have an idea of what kind of property you’re looking to buy.
Another useful tool in the research part of making a offer is the history of the property. When did the seller purchase the property? At what price? If the seller has moved in more recently, you may have some wiggle room for negotiations.
Getting pre-approved gives you some buying power. First, you’ll know how much house you can afford. Next, you’ll know that a lender is dedicated to lending you that amount to buy a home. Your offer will be taken more seriously if you have been pre-approved because the seller will know that you can get the funds to purchase the home.
Get The Help Of A Realtor
When you hire a realtor, you’re getting the agent along with the team of people that they work with. Realtors can recommend you to everyone from home inspectors real estate attorneys. An attorney is an especially helpful advocate in the process of buying a home because they can check to be sure that your offer meets the legal requirements within your state and protect your interests as a buyer.
The attorney will also look at the purchase agreement for the home. This will include all of the details of the property transaction:
- The date of the offer
- The address and property description
- Amount offered for the home
- Loan details including the down payment amount
- The closing date
- Any contingencies
These will all be very important to you as a buyer and a lawyer make sure that everything is legally sound will be a great protection for you.
Now, you’ll be ready to seal the deal!
An offer to purchase represents a key milestone in the homebuying journey. Ultimately, it helps to plan ahead to ensure you're ready to submit a homebuying proposal. Because if you know what it takes to put together a competitive offer to purchase a house, you can boost the likelihood that a home seller accepts your proposal.
Now, let's take a look at three tips to help you get ready to submit an offer to purchase.
1. Study the Housing Market
The housing market fluctuates frequently. As such, you may enter a real estate market that favors buyers but slowly shifts into sellers' favor, or vice-versa. But if you examine the real estate sector closely, you can differentiate a buyer's market from a seller's one and submit an offer to purchase that accounts for the current housing market's conditions.
If homes are selling quickly at or above their initial asking prices, you may be working in a seller's market. Comparatively, if houses linger on the real estate market for many weeks or months before they sell, you may be operating in a buyer's market. As you start to craft an offer to purchase a house, you should analyze the real estate market. By doing so, you can submit an offer to purchase that matches a seller's expectations.
2. Get Your Finances in Order
Entering the housing market with a budget in hand usually is beneficial. If you get pre-approved for a mortgage, you can narrow your house search and stick to a budget as you pursue your dream residence.
Banks and credit unions can teach you everything you need to know about fixed- and adjustable-rate mortgages. Perhaps best of all, lenders employ mortgage specialists who can respond to your mortgage concerns and questions. If you collaborate with a lender today, you can get the financing you need to buy a house. Also, you can conduct a search for homes that fall within your price range and reduce the risk of submitting an offer to purchase that surpasses your budget.
3. Avoid a "Lowball" Offer
Submitting a "lowball" offer to purchase a home may seem like a good idea at first. Yet submitting a homebuying proposal that falls short of a seller's expectations is unlikely to help you acquire your dream house.
In most instances, a seller will instantly reject a lowball offer to purchase. And if you receive an immediate "No" from a seller, you risk missing out on the opportunity to purchase your ideal residence.
Allocate time and resources to craft a competitive homebuying proposal – you'll be glad you did. Otherwise, you run the risk of putting together a lowball offer that will miss the mark with a seller and force you to look elsewhere to purchase a house.
Lastly, if you need extra assistance as you perform a house search, you may want to hire a real estate agent. By employing a real estate agent, you should have no trouble crafting a competitive offer to purchase any home, regardless of the housing market's conditions.
If you decide you're ready to purchase your dream house, you should submit a competitive homebuying proposal from the get-go. Otherwise, you could risk missing out on the opportunity to acquire your ideal residence.
Submitting an offer to purchase your ideal house that meets the expectations of a property seller can be simple. Now, let's take a look at three tips to help you craft a competitive offer to purchase your dream house.
1. Examine the Local Housing Market
The price of a home in a big city may prove to be much higher than the price of a comparable house in a small town. Much in the same vein, a housing market that features an abundance of sellers is likely to be far different from a market that includes many buyers. However, if you assess the local housing sector closely, you can identify real estate market patterns and trends and craft your homebuying proposal accordingly.
Oftentimes, it helps to look at the prices of recently sold houses in the city or town where you want to live. You also may want to find out how long these homes were available before they sold. That way, you can differentiate a buyer's market from a seller's one and put together a competitive offer to purchase based on the present's real estate sector's conditions.
2. Analyze a Home's Age and Condition
A brand-new home may prove to be more expensive than an older house that is in need of major repairs. Comparatively, a recently renovated house is likely to be a great choice for buyers who want to avoid property repairs, while a "fixer-upper" home may be a top option for those who are ready to tackle property repairs on their own.
As you analyze a home's age and condition, you should consider how much you are willing to pay for this residence. It sometimes helps to consider potential home upgrades and repairs that may need to be completed. And if you evaluate possible home improvement costs, you can account for these expenses in your offer to purchase.
3. Consult with a Real Estate Agent
A real estate agent is a homebuying expert, and his or her goal is to ensure you can acquire a great house at an affordable price. Thus, if you collaborate with a real estate agent, you can put together a competitive offer to purchase in no time at all.
Typically, a real estate agent will offer housing market insights that you may struggle to find elsewhere. And when you're ready to submit an offer to purchase your dream home, a real estate agent will help you craft a homebuying proposal that is sure to get a seller's attention. Plus, a real estate agent will negotiate with a seller's agent to help you get the best price on your ideal house.
Ready to submit an offer to purchase your dream home? Use the aforementioned tips, and you can put together a competitive homebuying proposal and quickly accomplish your homebuying aspirations.
If you're on the fence about whether to reject or accept an offer to purchase, it is important to remember that a third option is available: submitting a counter-offer.
Ultimately, deciding to submit a counter-offer can be a tough choice for first-time and experienced house sellers alike. But we're here to teach you about the benefits of counter-offers and ensure you feel confident to submit a counter-proposal as needed.
Let's take a look at three tips to help you decide when to submit a counter-offer.
1. Assess Your Residence
Although the initial asking price for your house is not set in stone, you likely have expectations about how much you should receive for your home. But if a homebuyer submits an offer to purchase that falls below your expectations, you should assess your residence to help you make the best-possible decision.
Try to take an objective view of your home – you'll be glad you did. For instance, if you discover your home is one of many similar properties available in a buyer's market, you may want to accept an offer to purchase, even if it falls below your expectations. On the other hand, if you feel that your home is in great condition and you receive an offer to purchase that is short of your initial asking price, you may want to counter the proposal or reject it altogether.
2. Review the Housing Market
Housing market data can help any home seller make informed decisions throughout the property selling journey. There is plenty of housing market data at your disposal, and you should not hesitate to use it, especially when you analyze an offer to purchase.
Oftentimes, it helps to look at the prices of recently sold residences, the prices of available residences in your area that are similar to your own and other pertinent housing market data. With this information, you can gain deep insights into the housing market. Then, you can determine whether an offer to purchase falls in line with the current state of the real estate sector.
3. Work with a Real Estate Agent
There is no need to review an offer to purchase on your own. Fortunately, if you hire a real estate agent, you can get the help you need to perform an in-depth analysis of any offer to purchase.
A real estate agent is a house selling expert who will allocate the necessary time and resources to help you review an offer to purchase. He or she can provide a recommendation about whether to counter a homebuying proposal and explain the reasons for this recommendation as well. Plus, if you ever have concerns or questions about an offer to purchase, a real estate agent is happy to address them.
Should you counter an offer to purchase? The answer depends on the home seller, the real estate market and other factors. And if you use the aforementioned tips, you can perform a full evaluation of an offer to purchase and proceed accordingly.