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!

cd21b762 73cf 4c07 84b3 6e5744185569 7c9b5fba ad4f 4002 9f25 8ea4f52fdb33 c6373118 cf31 4ae1 b636 9e0c2aed7034 ff28d022 bd42 4553 9b5e 5d0a0226791b 4922472b 1531 443e a49d 71823ff12616 8b27e599 a17b 4cab bcb0 cd3f7ebc7b25 d60bae31 f945 4c36 b281 6076ace460a3 94495894 53c4 4c90 bc27 f569e72ad878 6a051339 80fb 42fe bef1 8febcc8622c2 a0c954f5 272e 47be bd98 8cabeffe8901 7500e3da 8ec7 4077 aac7 b932c3117bc6 b7c91c2b ac8f 4e1a a51b 7cf2067382c1 582f4ac2 1760 4ed8 b02d 840eab5d61bd 5c9679cb fe4c 47fd bd0d 8a82a99cb0e4 ec0b5dd0 0a12 4240 8271 0b5fea339f3d fa4beebe 55f9 4d57 af79 304bd369ede5 c2bbc52e 28ab 4686 9db9 a6f11f807fa4 810e95d1 b59d 455c a847 6fcf5d2ba926 559772c7 11f1 42e3 8d75 8ddc5782adcd 52d6d9a9 4e16 4f66 80ea 9f2d4aedd3cf cc2ae73f bf60 4208 bb2c 1f4b98913112 8ad0fa44 fee3 4fb2 9e93 dff0e739555a d4311da2 0c39 49d2 99fd 978e01beafbc