Regardless of the time of year and the current market conditions, it is always wise to craft your best offer. Nowadays with inventory still being on the lower end you could find yourself in a competitive bidding situation - they still happen. Here are some guidelines for putting your best foot forward when you compose your offer.
Work With a Real Estate Agent
Working with an experienced real estate agent that specializes in the area where you are purchasing will certainly give you a leg up. They know best what has worked for others who have been purchasing similar homes in the local market and their advice can be crucial to your success. As PODS notes: “Making an offer on a home without an agent is certainly possible, but having a pro by your side gives you a massive advantage in figuring out what to offer on a house.”
Establish Your Budget
Knowing your budget ceiling is important and the best way to confirm your limits is to work with a lender so you can get pre-approved for a home loan. Doing so helps you be more financially confident and proves to sellers that you’re a serious buyer. That gives you a competitive edge. As Investopedia says: “. . . sellers have an advantage because of intense buyer demand and a limited number of homes for sale; they may be less likely to consider offers without pre-approval letters.”
Craft a Strong, But Fair Offer
Everyone of course wants the best price they can possibly get. However, low balling your offer does come with some risks that you may not want to take. As Realtor.com explains: “. . . an offer price that’s significantly lower than the listing price, is often rejected by sellers who feel insulted . . . Most listing agents try to get their sellers to at least enter negotiations with buyers, to counteroffer with a number a little closer to the list price. However, if a seller is offended by a buyer or isn’t taking the buyer seriously, there’s not much you, or the real estate agent, can do.”
Allow Your Agent To Assist With Negotiations
After you put your offer in, the seller may decide to counteroffer. When negotiating, it’s always wise to figure out what is important to the seller and maybe what their goals are. Once you do, being as flexible as you can on certain items like ideal moving dates or the condition of the house can make your offer even more attractive. Your real estate agent is your trusted partner in working with these details. Allow them to assist you through negotiations and figure out the best plan.
