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
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
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:
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
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
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.
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
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!