4 Tips For Making An Offer

Dated: 11/29/2016

Views: 180

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 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, 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 4.7-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 home.

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.” 

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 above the rest.

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 inspection uncovers undisclosed problems or issues, you can typically re-negotiate the terms or cancel the contract.”

Bottom Line

Whether buying your first home or your fifth, having me as your local real estate professional as an expert in the market on your side is your best bet.  Making sure the process goes smoothly. Happy House Hunting!

Want to Advertise on this Site?

Latest Blog Posts

Feb 20 2018 21170 1

Hey read this article today:Higher Rates Could Raise Housing Costs 15% DAILY REAL ESTATE NEWS | TUESDAY, FEBRUARY 20, 2018 If mortgage rate forecasts pan out, home buyers might see their mortgage

Read More

Feb 20 2018 20790 1

2 Ways to Get the Most Money from The Sale of Your Home Every homeowner wants to make sure they maximize their financial reward when selling their home. But how do you

Read More

How To Build The Perfect Home Gym

Working out doesn't have to be so much work. Ditching the gym membership for a home gym pays off in privacy, freedom, convenience, time efficiency, and cost! Here are 5 simple steps for building

Read More

Feb 19 2018 20198 1

Existing-home sales slowed in most of the country in December, but 2017 as a whole edged up 1.1 percent and was the best year for sales in 11 years. Read the full news.

Read More