How to Effectively Make an Offer
So, you finally found that perfect house to call a ‘home,’ now you want to know how to effectively make an offer and make it your own. The price is right, and in such a competitive market, you want to make sure that you make a good offer so that you can guarantee that your dream of making this house yours comes true!
How to Effectively Make an Offer
Freddie Mac covered “4 Tips for Making an Offer” in their latest Executive Perspective. Here are the 4 tips they covered along with some additional information for your consideration:
1. 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.
As we’ve mentioned before, 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. Act Fast
“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.”
According to the latest Existing Home Sales Report, the inventory of homes for sale is currently at a 3.7-month supply; this is 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 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 Solid 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.”
Talk with your agent to find out if there are any ways that you can make your offer stand out in this competitive market!
4. 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.”
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 inspector uncovers undisclosed problems or issues, you can discuss any repairs that may need to be made with the seller, or cancel the contract.
Bottom Line:How to Effectively Make an Offer
Whether you’re buying your first home or your fifth, having an Arizona Home Group professional on your side who is an expert in their market is your best bet in making sure the process goes smoothly. Happy House Hunting!
Who You Choose Makes a Difference When Buying or Selling a Home
5 Star Zillow Premier Agent Review:
John Sposato and his team are absolutely amazing! Extremely responsive. John was very aware of our needs and likes so our pool of homes to look at all really had the chance to be “The One”. John has been our realtor from when we purchased our original home back in 1999. He negotiated a great buy then and has gotten us our ask price on one sale, which was the highest per square foot purchase in the area at the time, and darn near asking price on our last sale, before this purchase. As he has been for 17 years, John and his team, is who I will be looking to for any future purchases myself and who i will be referring out when asked. Thank you again to John and his team! Your the best! Those thinking of real estate in the Phoenix Market would be wise to give John and his team a call. You will not be disappointed! I assure you that! ~ Ty Wilcox