4 Tips for Making a Competitive Offer

So, you’ve been searching for that perfect house tocall ‘home,’ and you’vefinally found it! The price is right, and in such a competitivemarket, you want to make sure you make a good offer so that you canguarantee that your dream of making this house yours comestrue!

Below are 4 steps provided by Freddie Mac tohelp buyers make offers, along with some additional information foryour consideration:

1. Determine Your Price

“You’ve found the perfect home and you’reready to buy. Now what? Your real estate agent will be by yourside, helping you determine an offer price that isfair.”

Based on your agent’s experience and key considerations(like similar homes recently sold in the same neighborhood or thecondition of the house and what you can afford), your agent willhelp you to determine the offer that you are going to present.

Getting pre-approved will not only showhome-sellers that you are serious about buying, but it will alsoallow you to make your offer with confidence because you’llknow that you have already been approved for a mortgage in thatamount.

2. Submit an Offer

“Once you’ve determined your price, your agentwill draw up an offer, or purchase agreement, to submit to theseller’s real estate agent. This offer will include thepurchase price and terms and conditions of thepurchase.”

Talk with your agent to find out if there are any ways in whichyou can make your offer stand out in this competitive market! Alicensed real estate agent who is active in the neighborhoods youare considering will be instrumental in helping you put in a solidoffer.

3. Negotiate the Offer

“Oftentimes, the seller will counter the offer,typically asking for a higher purchase price or to adjust theclosing date. In these cases, the seller’s agent will submita counteroffer to your agent, detailing their desired changes, atthis time, you can either accept the offer or decide if you want tocounter.

Each time changes are made through a counteroffer, you orthe seller have the option to accept, reject or counter it again.The contract is considered final when both parties sign the writtenoffer.”

If your offer is approved, Freddie Mac urgesyou to “always get an independent homeinspection, so you know the true condition of thehome.” If the inspector uncovers undisclosedproblems or issues, you can discuss any repairs that may need to bemade with the seller or even cancel the contract altogether.

4. Act Fast

The inventory of homes listed for sale has remained well belowthe 6-month supply that is needed fora ‘normal’ market. Buyer demand hascontinued to outpace the supply of homes for sale, causing buyersto compete with each other for their dream homes.

Make sure that as soon as you decide that you want to make anoffer, you work with your agent to present it as quickly aspossible.

Bottom Line

Whether buying your first home or your fifth, having a localreal estate professional who is an expert in his or her market onyour side is your best bet in making sure the process goessmoothly. Let’s talk about how we can make your dream ofhomeownership a reality!