After weeks of looking at homes in person and online, the time has come. You’ve fallen in love with a home, and you’re ready to make an offer. It can be scary, but exciting at the same time.
Here are some pointers to keep in mind as you throw your hat in the ring.
Have Confidence In Your Experience
Keep in mind that when it comes to making an offer, there is no single right answer and no exact price or terms for a home you want. As a savvy buyer, you’ve got the market knowledge and experience it takes to analyze the deal. Believe in yourself.
Take what you’ve learned from your Realtor, and trust your judgment. Think about the homes you’ve toured and you will naturally start to see where your home of choice fits in the context of the market.
Learn All You Can Upfront
If you are ready to pull the trigger, first find out what the story is with the listing history. In order to come up with the best offer, you’ll need to know how long the home has been on the market, if there are other offers on the table, and if there is a specific day the sellers plan review the offers.
Reviewing Comps Is Critical
Your agent should send you the last six months of recent sales data to review and compare. These “comps” tell about the most recent market and what current buyers/sellers have agreed on for a sale price.
Ask your agent what her opinion of the home’s value is. When creating comps for clients I like to think “had I been the listing agent on this home, I would have recommended positioning the price at $X.”
Update Your Lender
Let him know you plan to make an offer on the home. Not only will you need to accompany the offer with an updated pre-approval letter with your offer, but you will want an update on mortgage rates and terms, since these can change daily.
In addition to price, you will need to decide on terms. How long will you take for your inspections? Do you want to close quickly or take a longer time? Will you need an appraisal contingency? A home warranty?
The terms of your offer can make or break your deal. If the seller wants a quick close, and you can do it, give it to them. If you are competing with a cash offer, make your loan terms foolproof. Marry all of the data from above and take your best shot. Be bold if it’s called for.
Remember, There Will Be Other Houses
Rarely does a buyer score the first house they offer on. And it’s not the end of the world if you don’t. There will be other homes for sale.
People change jobs, get divorced, move closer to family, have children or pass away. All of these things can result in a home sale or purchase.
Know that another home will come along in the future. There’s no rush. Have fun, listen to your agent’s experience and learn from each offer you make.
Ready to take your first step? Book an appointment to talk with us.