Courtesy of Keeping Current Matters/
The KCM Blog
5/16/17
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, you want to make sure that you make a good offer so that you
can guarantee that 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’ should really 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 3.7-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.”
Talk with your agent to find out if there are any ways that you can make your offer stand out in this competitive market!
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
inspector
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 you’re 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 in making sure the process goes smoothly. Happy House Hunting!
Kevin D. Barbee