5 Things Homebuyers Need To Know When Making an Offer
When it comes to buying a house, you’re looking for the perfect place to call home. The problem is, in today’s market there just aren’t that many homes available to purchase.
1. Know Your Numbers
Having a complete understanding of your budget and how much house you can afford is essential. That’s why you should connect with us as early in the homebuying process as possible so we can put you in touch with one of our Preferred Local Lenders to get pre-approved for a mortgage. Taking this step shows sellers you’re a serious, qualified buyer and can give you a competitive edge in a bidding war.
2. Brace for a Fast Pace
Today’s market is dynamic and fast-paced. According to the Realtors Confidence Index from the National Association of Realtors (NAR), the average home is on the market for just 17 days – that means from start to finish, a house for sale in today’s climate is active for roughly 2.5 weeks.
In Southern Indiana, if a house is priced well and staged right it often goes under contract in the first 24-72 hours. That means time is of the essence.
Agents with the 812 Living Group will do everything we can to help you stay on top of every possible opportunity. And, as soon as you find the right home for your needs, we will help you draft and submit your best offer as quickly as possible.
3. Lean on a Real Estate Professional
While homebuying may seem like a whirlwind process to you, our agents do this every day, and we know what works. That expertise can be used to give you a significant leg up on your competition. We can help you consider what levers you can pull that might be enticing to a seller, like:
Utilizing an "Escalation Clause" when appropriate
Offering an "Appraisal Gap Clause" to the seller up front
Discussing your ability to do a quick close or make an offer that’s not contingent on the sale of your current home
It may seem simple, but catering to what a seller may need can help your offer stand out.
4. Make a Strong, but Fair Offer
Let’s face it – we all love a good deal. In the past, offering at or near the asking price was enough to make your offer appealing to sellers. In today’s market, that’s often not the case. According to Lawrence Yun, Chief Economist at NAR:
“For every listing there are 5.1 offers. Half of the homes are being sold above list price.”
5. Be a Flexible Negotiator
If you followed tip #3, you drafted the offer with the seller’s needs in mind. That said, the seller may still counter with their own changes. Be prepared to amend your offer to include flexible move-in dates, a higher price, or minimal contingencies (conditions you set that the seller must meet for the purchase to be finalized). However, there are certain contingencies you don’t want to forego. Freddie Mac explains:
“Resist the temptation to waive the inspection contingency, especially in a hot market or if the home is being sold ‘as-is’, which means the seller won’t pay for repairs. Without an inspection contingency, you could be stuck with a contract on a house you can’t afford to fix.”
Bottom Line When it’s time to make an offer, it’s important to consider not just what you need, but what the seller may need too. Let’s connect so you have expert advice on this step in the homebuying process to put your best offer on the table.
Want to find out more? Check us out at 812Living.com and download our FREE Seller’s guide full of info and tips on selling your home in the current market.
Ready to make a move? Message us at firstname.lastname@example.org to get started.
Not ready to sell yet? Follow us on Facebook at Facebook.com/812Living for real estate related info and Southern Indiana community news.
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