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How to Make a Successful Offer in Today’s Housing Market
Special to The Truth
Prospective homebuyers can
get encouraged by the current market. Nearly 68 percent of
homes sales today are to individual buyers compared to 53
percent in 2011 when investor and cash deals were at their
peak. Still, competition for housing is hot.
“In a competitive market,
your offer may be one of many. But you can take steps to
increase your chances of success,” says Chris Bowden, senior
vice president of HomeSteps, the real estate sales division
of Freddie Mac.
The experts at HomeSteps
and Bowden are offering homebuyers five important tips for
making an offer in today’s market:
• Understand your
finances. While it’s not nearly as fun as house hunting,
fully understanding your finances is critical to helping you
determine your price limit and whether your budget can cover
necessary upgrades, as well as monthly expenses for general
upkeep and utilities, which can run hundreds of dollars
monthly.
• Act fast. When home
inventory is low, the sooner you can make an offer, the
better. Get pre-approved if you know you’ll need a mortgage
to buy. It will help you act fast and make a confident
offer.
• Make a solid offer. A
strong offer will be comparable with other sales and
listings in the neighborhood. A licensed real estate agent
who is active in the neighborhoods you’re considering will
be instrumental in helping you put in a solid offer based on
recent sales of similar homes, the condition of the house
and what you can afford.
Always ask the seller for
a home warranty as part of your initial offer. That way,
you’ll be covered if appliances or mechanicals fail or break
down after you’re in the home.
Set your offer apart from
the competition by including a letter to the seller, or
offer the seller the ability to rent back their home for
some period of time after closing. This can be your chance
to connect beyond just dollars. Talk to your agent about
other ways to make your offer resonate.
• Prepare to negotiate. Be
prepared for counteroffers. 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 aid the
negotiation process, giving you guidance on the counteroffer
and making sure that the agreed-to contract terms are met.
• Get a home inspection.
Once you’ve signed the purchase contract, always get an
independent home inspection so you know the true condition
of the home. If the inspection uncovers undisclosed problems
you can typically re-negotiate the terms or cancel the
contract.
More tips, insights and
home buying resources can be found by visiting
myhome.freddiemac.com.
While house hunting is
fun, home buying should not be taken lightly. For best
results, get prepared. Smart strategies can help you make a
successful offer on a property.
Courtesy StatePoint
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