5 Things Homebuyers Need To Know When Making an Offer
Making an offer is where preparation pays off.
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. With inventory hovering near record lows and high buyer demand, a multi-offer scenario is the new normal. Here are five things to keep in mind when you’re ready to make an offer.
1. Know Your Numbers
Having a complete understanding of your budget and how much house you can afford is essential. Connect with a lender to get pre-approved for a loan early in the homebuying process. 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. A skilled agent will do everything they can to help you stay on top of every possible opportunity, and as soon as you find the right home for your needs, 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, local real estate agents do this every day and know what works. An agent can help you consider what levers you can pull that might be enticing to a seller, like offering flexible rent-back options to give the seller more time to move out, or your ability to do a quick close or make an offer that’s not contingent on the sale of your current home. Catering to what a seller may need can help your offer stand out.
4. Make a Strong, but Fair Offer
In today’s competitive market, offering at or near asking price is often not enough. Use an agent as your trusted advisor to make a strong, but fair offer based on market value, recent sales, and demand.
5. Be a Flexible Negotiator
Even a well-crafted offer may come back with a counter from the seller. Be prepared to amend your offer to include flexible move-in dates, a higher price, or minimal contingencies. That said, resist the temptation to waive an inspection contingency, especially in a hot market, so you don’t end up 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.
Making an offer that stands out
Lead with a strong pre-approval
Sellers want confidence that you can close. A full lender pre-approval makes your offer stronger than a simple pre-qualification. It is the first thing a listing agent checks when you are making an offer.
Price from the comps
Base your number on recent closed sales, not the list price alone. Your agent can show you what similar homes actually sold for before you start making an offer.
Keep terms clean
Reasonable inspection periods, solid earnest money, and a flexible closing date can matter as much as price when making an offer. Your agent can help you balance each term before making an offer official.
Related reading: Buying a home in Johnson County, step by step · First-time home buyer guide to Olathe
Source: Consumer Financial Protection Bureau: Buying a House
Questions about your own situation? Call or text Bryan Bechler, Compass Realty Group, at 816-547-0893.
