Judy Kuhtreiber's Blog
Looking to put together an offer on a house? Ultimately, you'll want to submit a competitive first offer. By doing so, you can speed up the process of acquiring your dream residence.
When it comes to submitting a competitive home offer, however, it is important to understand what differentiates a "fair" proposal from a subpar one.
To better understand how to submit a competitive proposal, let's take a look at three best practices that every homebuyer needs to consider before making an offer on a house.
1. Evaluate the Housing Market
If you plan to buy a house, you'll want to examine the real estate market closely. That way, you can identify housing market patterns and trends and plan accordingly.
For example, if you find there is an abundance of high-quality houses available, you may be entering a buyer's market. In this market, there likely is a shortage of homebuyers, which means a competitive offer at or near a home seller's asking price is sure to grab this individual's attention.
On the other hand, if you notice that homes are selling quickly in a city or town, you may need to prepare for a seller's market. If you pursue houses in a seller's market, you may need to act quickly due to the sheer volume of buyers competing for the same residences.
Clearly, a comprehensive housing market analysis can make a world of difference for homebuyers. With in-depth housing market insights at your disposal, you'll be better equipped than other buyers to submit a competitive first offer on any residence, regardless of the current real estate market's conditions.
2. Get Your Finances in Order
What good is a competitive home offer if you cannot afford to buy a residence? If you secure a home loan, you can narrow your home search to properties that you can afford. Then, you'll be able to submit a competitive offer that ensures you won't have to break your budget to purchase your dream residence.
Also, if you're unsure about how your financial situation will impact your ability to buy a house, you should consult with banks and credit unions in your area. These financial institutions can help you get pre-approved for a home loan, establish a homebuying budget and much more.
3. Collaborate with a Real Estate Agent
When it comes to submitting a competitive home offer, it pays to receive expert homebuying support. Fortunately, you can hire a real estate agent who is happy to help you put together a competitive home offer.
A real estate agent can provide housing market data that you may struggle to obtain elsewhere. Plus, this housing market professional can offer unbiased home offer recommendations to ensure you can get an instant "Yes" from a home seller.
Collaborating with a real estate agent is a great option for homebuyers in all cities and towns. Reach out to local real estate agents today, and you can get the help you need to submit a competitive offer on any residence.
Deciding whether to submit an offer to purchase a house may prove to be difficult. Fortunately, we're here to help you weigh the pros and cons of submitting a homebuying proposal so you can make the best-possible decision.
Now, let's take a look at three tips to help you determine whether now is the right time to submit an offer to purchase a residence.
1. Evaluate Your Budget
If you believe you've found your dream home, you should take a look at your budget. That way, you can verify whether you'll be able to afford this residence both now and in the future.
Oftentimes, it helps to get pre-approved for a mortgage before you start a house search. If you meet with banks and credit unions, you can learn about all of the mortgage options at your disposal. Then, you can select a mortgage that allows you to pursue a house with a budget in hand.
2. Consider Your Homebuying Criteria
You want to discover your dream residence as quickly as possible, but it is paramount to find a house that you can enjoy for years to come. If you have a list of homebuying criteria, you may be able to quickly determine whether a residence is right for you.
As you craft homebuying criteria, think about what you want to find in your dream residence. For instance, if you've always wanted to own a house on a beach, you can narrow your home search accordingly. On the other hand, if you would like to own a home that has an above-ground swimming pool but can live without this feature if necessary, you should include an above-ground swimming pool as a low-priority item on your homebuying checklist.
3. Assess the Housing Market
The housing market often fluctuates, and a buyer's market today may shift into seller's favor tomorrow. If you analyze the housing market closely, you can differentiate a buyer's market from a seller's one. You then can decide whether to submit an offer to purchase or hold off on providing a homebuying proposal until housing market conditions improve.
To distinguish a buyer's market from a seller's market, it generally is a good idea to look at the prices of recently sold houses in your city or town. You also should find out how long these residences were available before they sold. By reviewing this housing market data, you can assess the demand for houses in your city or town.
Lastly, as you debate whether to submit an offer to purchase a residence, you may want to consult with a real estate agent. This housing market professional is happy to provide honest, unbiased homebuying recommendations. As a result, a real estate agent can help you perform an in-depth evaluation of a home and determine whether to offer to buy this house.
Make an informed decision about whether to submit an offer to purchase a residence – use the aforementioned tips, and you'll be better equipped than ever before to decide how to proceed with any house, at any time.
When you find a home you love, you most likely will want to take the steps you can to buy it. When a home is already under contract, there’s actually a little-known strategy that can be used to help you have a chance at getting the property.
When you make a backup offer, you’re doing all of the same things you’d do under normal circumstances. The only difference between a normal offer and a backup offer is that you’re not guaranteed to get the home. The first deal needs to fall through in order for you to have a shot.
Advantages To Backup Offers
The backup offer is a bit of a stretch, but it still does give you a little bit of a chance to get a home. When a backup offer is in place, the home won’t just go back on the market if something falls through. This is especially smart when it comes to lower inventory markets. When a home is re-listed, you’ll need to compete against other buyers. If a bidding war is initiated, the home’s price will keep going up. The backup offer being in place helps the seller to feel secure in the sale of their home one way or another. If for any reason the first buyer falls through, you’ll be able to swoop in and get the home yourself.
Timing Is Everything
Keep in mind that there’s a certain period of time before a deal needs to be closed on for a home. The original buyer will need to close the deal on the home in an average of 50 days. Knowing the time frame that you’ll need to wait around for a decision is helpful for you in your own search for a home.
You can also have your agent check in with the listing agent for the property on a frequent basis. This lets the agent ad seller know that you have a keen interest in the property in case there are any difficulties coming from the other side of the deal.
If The First Deal Doesn’t Go Through
If the first deal on a home does fall through, you’re not the new owner of the home just yet. There’s always a possibility that the first buyers found some very difficult problems with the home during the inspection. These could be big issues like an issue with the roof or the foundation of the home. Be sure to include a home inspection contingency with your contract so that you can have your own inspection conducted. This way, you’ll know if there are any problems with the home and that you will be able to deal with them.
A backup offer can be a great tool to use in tight markets to help you get a home that you love. It’s always a good idea to proceed with caution in any home deal to make a sound financial decision.
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!