If you are in the market for real estate, then you know that it can be a lot like buying a car but with far more at stake. Unless you are trying to buy a home in a very hot market, you probably won't be paying the listing or "asking" price on the home, but instead, you'll make the owners an offer. The amount you offer and other details are subject to market conditions, the seller's need to sell, and other issues, so read on to find out a bit more about this confusing aspect of the home-buying process.
The price is right
Before you even attempt to make an offer on a home, you must know what you can afford. One great way to do that is to contact a lender and get your financing approved in advance. Not only will getting this approval let you know that you can actually follow through on the home purchase, but it also lets the sellers know that you are a serious buyer and are ready to close the deal. Consider it this way: if the seller has two offers that are essentially for the same price and one has their lending already approved and one does not, then you can guess which buyer will win the chance to own the home.
You and everyone else wants the home
Great homes in great neighborhoods at great prices can bring a great deal of interest when a home hits the market. In some markets, homes might be under contract faster than you can even make arrangements to look inside it. What that means for buyers is making offers that are enough to please the seller but that are not too much for what the home is worth. When you are competing for the home of your dreams you can take several actions that might spur better results in the bidding game. Take a look at some tips on making offers that might give you a boost above others.
1. Know your seller: It pays to do some research on the home seller, and your real estate agent will know exactly what questions to ask the seller's agent to get the information you need. Knowing how important a quick closing might be or other information could really pay off if you know how to use that info. For example, you might find out that the seller has already purchased another home and is eager to put the old home behind. Let the seller know that you have lending already approved, that you are willing to make repairs yourself, and that you are ready to close quickly. That could be all it takes to get the seller in your favor.
2. Don't use common figures in your offer: When the competition is heated, it could pay to make your offer more memorable by stating your offer figures in unusual amounts. Instead of offering a flat amount of $300,000, offer them $301,025. That difference may not only make it the highest but also make the offer stand out from the crowd.
3. Write a letter that appeals: There may be good reasons why that particular home seems perfect for you, and it may help your cause if you let the owner know about it. Sometimes, a personal letter to the owner explaining why you are dreaming of raising your family in their home will make them remember the reasons they first fell in love with the home, and doing so could be your ticket to winning the bidding battle. Speak to your real estate agent to learn more about making an offer that gets you the home you want.
Share25 September 2018
When I started looking for a new home, I realized that there were a few things I needed to be careful about. For instance, I really needed to focus on finding a home that would appreciate in value, so I began thinking about investing in the right property. After quite a bit of research, I was able to find a great neighborhood that had a big support system for my family. After we found a house we loved, we worked with a real estate agent to procure it, and it was really nice to feel like we belonged somewhere. Read this blog about ways to find amazing pieces of real estate the first time around.