5 Tips for Making Your Best Offer

By
Real Estate Agent with Champion Real Estate Group 0561240

In todays sellers market, standing out as a buyer is critical. Multi-offer scenarios and bidding wars are the norm due to the low supply of houses for sale and high buyer demand. If you're buying this fall, you'll want every advantage, especially when you've found the home of your dreams.

Below are five things to keep in mind when its time to make an offer.

1. Know Your Budget

Knowing your budget and what you can afford is critical to your success as a homebuyer. The best way to understand your numbers is to work with a lender so you can get pre-approved for a loan. As Freddie Mac puts it:

This pre-approval allows you to look for a home with greater confidence and demonstrates to the seller that you are a serious buyer.

Showing sellers you're serious can give you a competitive edge. It enables you to act quickly when you've found your perfect home.

2. Be Prepared To Move Fast

Speed and the pace of sales are contributing factors to todays competitive housing market. According to the latest Existing Home Sales Report from the National Association of Realtors(NAR), the average home is on the market for just17 days. As the report notes:

Eighty-nine percent of homes sold in July 2021 were on the market for less than a month.

When homes are selling fast, staying on top of the market and moving quickly are key. After you've worked with your agent to find the home that suits your needs, they'll help you put together and submit your best offer as soon as possible.

3. A Real Estate Professional Can Lead You to Victory

No matter what the housing market looks like, rely on a trusted real estate advisor. As Freddie Mac says:

The success of your homebuying journey largely depends on the company you keep. . . . be sure to select experienced, trusted professionals who will help you make informed decisions and avoid any pitfalls.

Agents are experts in the local real estate market. They have insight into what’s worked for other buyers in your area and what sellers may be looking for in an offer. It may seem simple, but catering to what a seller may need can help your offer stand out.

4. Craft a Strong, Fair Offer

In the past, offering at or near the asking price was enough to make your offer appealing to sellers. In todays market, that's often not the case. According to the latest Realtors Confidence Index from NAR, 50% of offers are above the list price.

In such a competitive market, emotions and prices can run high. Having an agent to help craft a strong, fair offer is critical in these situations. Your agent can help you understand:

  • The market value of the home
  • Recent sales trends in the area
  • Current buyer demand

5. Understand the Sellers Needs, but Resist Waiving Certain Contingencies

When crafting an offer, you'll want to keep both your best interest and the interest of the seller in mind. Your trusted real estate advisor will help you consider which levers you could pull, including contract contingencies (conditions you set that the seller must meet for the purchase to be finalized). Of course, there are certain contingencies you don't want to give up, like the home inspection.

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 wont pay for repairs. Without an inspection contingency, you could be stuck with a contract on a house you cant afford to fix.

Bottom Line

Todays competitive housing market makes it more important than ever to make a strong offer on a home. Lets connect to make sure your offer rises to the top.

 

 

 

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Comments (2)

Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Shayne, your post hits home this morning, just wrote an offer where there are 4 other offers already in.  My buyers WANT this home, so we talked yesterday and today at great length.

Sep 20, 2021 09:38 AM
Shayne Stone

Awesome, Joan! Best of luck. One option I purpose to my Buyers (but it's risky) but sometimes worth a try especially in New Built Houses. Is to present contract with NO Option Period. In Texas we have OP Option Period which buyer give Sellers some cash to take House off market for a period of time like 5-10 days. This allows the buyer time enough to investigate property and perform inspection which if Buyer decides that can get out of contract during that time for any reason. 


But with No OP, the only way out of contract for is Lender denial like Apprisal...

Sep 20, 2021 10:37 AM
Kristin Johnston - REALTOR®
RE/MAX Realty Center 262-567-2455 - Waukesha, WI
Giving Back With Each Home Sold!

Great information.  Thanks for sharing and have a wonderful day!

Sep 21, 2021 06:58 AM