Thinking of Making an Offer? 4 Tips for Success

Home / Blog / Thinking of Making an Offer? 4 Tips for Success

Thinking of Making an Offer? 4 Tips for Success

So you’ve been searching for that perfect house to call a ‘home,’ and you finally found one! The price is right, and in such a competitive market that you want to make sure you make a good offer so that you can guarantee your dream of making this house yours comes true!

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’ really should 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 3.6-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.”

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 out above the rest.

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 inspection 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 

Whether buying your first home or your fifth, having a local professional on your side who is an expert in their market is your best bet to make sure the process goes smoothly. Happy House Hunting!

3a323efd 79f0 4366 bd71 fe6e7bc020e0 bdb1b8ee 6992 4d4c 8075 d16ca91d0a80 f747bbf8 09d8 4510 819e 44035b745fde f00539a1 d01b 4a09 b625 3ad595a9b778 e1d2c641 c786 41a3 b8df 5f7f5d76b4ce dc1c0c9e 6df8 4b8a a8c4 daaf1db9e63c 526269d2 2c77 4109 a39a 6ce8803c6a02 1416ad47 59a6 4eda 91e0 374ad760e92a 9898341e bb31 4efa 86da c394bbb2b242 5dc99006 ea3a 4034 830f 06888b66e9c6 ae658684 950e 4ead 8c77 4c77ee48febb 59c65775 9238 42ed a84a e294c0937348 ab6705a6 a8c2 47eb b16a 0ca0e875ff38 d112f77a 8a03 4c0e 8478 e0fd2d90fe36 e165ee39 8dc8 44c8 9a71 b0d1db2b2007 4b327654 c92b 4905 86d7 c0dd295c0130 d22d22d2 dc17 4be6 84e6 d2623b211379 749f4738 2f86 4677 aafd 02bfc7bf4b55 5511ca4c 0700 4533 8576 dc7bd28311c8 a279c187 ed8b 49ac 947c 86f7c9e10784 d3a2ae02 8964 4db6 aea6 a57c0ec6f9e8 36edf66a 4285 4df8 960f ebde06c5a4ff d191a34e 1db9 4e64 975b eb4db70070f4