Vanessa Duguerre's Blog
After conducting an in-depth home search, you probably have discovered that many outstanding houses are available. Yet you're still on the fence about whether to submit an offer to purchase a residence.
Ultimately, there are many signs that now may be the ideal time to submit an offer to purchase a residence, and these include:
1. You find a house that matches or exceeds your expectations.
If you view a home and find that it matches or exceeds your expectations, you may want to submit an offer to purchase this residence. Because if a home seller accepts your proposal, you then can conduct a house inspection to alleviate any potential concerns.
Remember, a house that matches or exceeds your expectations now may fail to do so following an inspection. Lucky for you, an inspection provides a valuable learning opportunity. If you discover you no longer wish to purchase a house following an inspection, you can rescind your offer to purchase and reenter the housing market.
2. You're operating in a seller's market.
A seller's market generally features a shortage of high-quality houses and an abundance of buyers. Thus, if you find a home that you want to buy in a seller's market, you should not hesitate to submit an offer to purchase. Because if you wait too long, you may miss out on the opportunity to buy your dream residence.
If you submit an offer to purchase a home in a seller's market, it is important to provide a competitive homebuying proposal. By doing so, you can increase the likelihood of receiving an instant "Yes" from a seller and move quickly to acquire your ideal house.
3. You're facing a time crunch.
If you want to move to a new home soon, there is no need to wait to submit an offer to purchase. In this scenario, you should submit an offer to purchase as soon as you discover your dream house. That way, you can speed up the process of relocating from one address to another.
Of course, if you face a time crunch, you should map out your home search as much as possible. Just because you have a limited amount of time at your disposal does not mean you should be forced to settle for an inferior home. Fortunately, if you create a homebuying strategy, you can find ways to optimize your time and resources throughout your home search.
For homebuyers who are uncertain about whether to submit an offer to purchase a house, it may be beneficial to work with a real estate agent too. A real estate agent can offer expert insights into the housing sector. As such, this housing market professional can help you determine whether now is the right time to submit an offer to purchase a house.
Hire a real estate agent today, and you can get the help you need to discover your ideal residence and acquire this house at a price that matches your budget.
If you receive an offer to purchase your home, you may have only a limited amount of time to decide whether to accept this proposal. As such, there are several factors you'll want to consider to determine whether to approve an offer to purchase your home. These factors include:
1. The Price of Your Home
If you established a competitive initial asking price for your home, you should have no trouble determining whether an offer to purchase falls in line with your expectations. Thus, if an offer to purchase your home is at or above your residence's initial asking price, you may want to accept a buyer's proposal and move forward with a house sale.
Of course, if an offer to purchase your house falls below your residence's initial asking price, you should still evaluate the proposal closely. If you feel the offer to purchase is the best proposal you might receive, you may want to accept it.
2. The Current State of the Local Housing Market
Examine the current state of the local housing market – you'll be glad you did. If you discover you are operating in a buyer's or seller's market, you can assess an offer to purchase your home accordingly.
If you find a buyer's market is in place, you may be more inclined than ever before to accept a competitive offer to purchase your home. Because in this market, the number of sellers exceeds the number of buyers, and rejecting a homebuying proposal does not guarantee you will receive better offers to purchase in the near future.
Comparatively, if a seller's market is in place, you may want to take a wait-and-see approach to any offers to purchase your residence. In this market, the number of buyers exceeds the number of quality houses available. As a result, you may receive dozens of offers to acquire your residence if you wait for the local housing market to develop.
3. Your Home Selling Goals
You should feel good about accepting an offer to purchase your house. Therefore, if an offer to purchase enables you to achieve your home selling goals, you may want to accept it sooner rather than later. By doing so, you can take the next step to finalize your house sale.
As you debate how to proceed with an offer to purchase your house, you may want to consult with a real estate agent too. This housing market professional may be able to offer housing market insights that you won't find anywhere else. Plus, he or she can provide honest, unbiased home selling recommendations. And if you ultimately decide to accept an offer to purchase your residence, a real estate agent can guide you along the final stages of the property selling journey.
There is no reason to settle for a subpar offer to purchase your house. But if you consider the aforementioned factors, you can make an informed decision about whether to accept, reject or counter a homebuying proposal.
Making an offer on a home you’d love to buy is arguably the most stressful part of the buying process. You’ll be worrying about making the right offer, whether you’ve presented yourself in the best possible light, and just how much competition you’re up against.
Today we’re going to help you alleviate that anxiety by giving you the most common real estate offer mistakes to avoid, and show you how you can increase your chances of getting the perfect home for you.
1. Do your research on the house
You have a lot of research to do before making an offer on a home. You’ll want to know the price the home formerly sold for and improvements that have been made and that will need to be made if you move in.
It also helps to know the seller’s situation. Are they on a deadline and moving out-of-state? If so, they might be tempted to take one of the earlier offers they receive.
2. Know your own financial limits
Before you ever make an offer you’ll need to know how much you can spend. This isn’t just a matter of offering the maximum amount you’re preapproved for. You’ll have to factor in moving expenses, final payments on your last rent or mortgage, changes in utility costs, and more.
3. Don’t offer your full preapproval amount
Sellers who know that you’ve offered your maximum preapproval amount may be wary of selling since they know you lack room to negotiate your budget and therefore might have a higher chance of backing out of the offer. They might favor other buyers who have room to negotiate and account for unexpected changes in their budget or of rising interest rates.
4. Avoid aggressive negotiation
We know the stakes are high for everyone involved in making a real estate deal. However, sellers are more likely to accept the offer of someone they trust and like over someone who seems to be trying to gain leverage.
Always be cordial with your offers and support them with numbers--explain to the seller why you chose the number you did, so that they can understand your reasoning.
5. Don’t attempt to gain leverage by waiving a home inspection
By law, you are allowed to have a home professionally inspected before purchase. Waiving this right is sometimes misconstrued as a way to tell a seller that you trust them and don’t want to cause them any unnecessary headaches.
The reality of the matter is that if you truly do want to own their home, sellers understand that you want to know what you’re buying.
6. This isn’t the only house you can be happy in
Hunting for a home is hard work. Once you find one that seems perfect for you or your family, it can seem like everything depends on your offer being accepted.
However, the fact is there are endless houses on the market, and next week a new one could be put up for sale that is even better than the home you’re hoping for now.
If your offer isn’t accepted and you don’t feel comfortable committing to a higher price, move on to the next house knowing that you made the best decision under the circumstances.
Shopping for a home is a long, arduous process. When you finally find one that you love, think you can afford, and spend the time to formulate an offer, it can be crushing when your offer is rejected.
However, getting rejected is simply part of the process. If you’ve ever applied to college, you might be familiar with this process. You send out applications that you poured your heart and soul into. Sometimes to get accepted, other times you don’t.
Making an offer on a home comes with one big advantage over those college applications, however--the opportunity to negotiate. As long as the house is still on the market after your offer is rejected, you’re still in the game.
In this article, we’re going to talk you through what to do when your offer is rejected so you can reformulate your plan and make the best decision as to moving forward.
1. Don’t sweat it
One of the most common fallacies we fall into as humans is to think the outcome is worse than it really is. First, remember that there are most likely other houses out there that are as good if not better than the one you are bidding on, even if they’re not for sale at this moment.
Next, consider the rejection as simply part of the negotiation process. Most people are turned off by rejection. However, you can learn a lot when a seller says no. In many cases, you can take what you learned and return to the drawing board to come up with a better offer.
Don’t spend too much time scrutinizing the seller’s decision. Ninety-nine percent of the time their decision isn’t personal. You simply haven’t met the pricing or contractual requirements that they and their agent have decided on.
2. Reconsider your offer
Now it’s time to start thinking about a second offer. If the seller didn’t respond with a counteroffer it can mean one of two things. First, they might be considering other buyers who have gotten closer to their requirements. Alternatively, your offer may have been too low or have had too many contingencies for them to consider.
Regardless, a flat-out rejection usually means changes need to be made before following up.
3. Making a new offer
This is your chance to take what you learned and apply it to your new offer. Make sure you meet the following prerequisites before sending out your next offer:
Double check your financing. Understand your spending limits, both on paper and in terms of what you’re comfortable spending.
Check comparable houses. If houses in the neighborhood are selling for more than they were when the house was previously listed, the seller might be compensating for that change.
Make sure you’re pre-approved. Your offer will be taken more seriously if you have the bank’s approval.
Remove unnecessary contingencies. It’s a seller’s market. Having a complicated contract will make sellers less likely to consider your offer.
4. Move on with confidence
Sometimes you just can’t make it up to the seller’s price point. Other times the seller just can’t come to terms with a reasonable price for their home. Regardless, don’t waste too much time negotiating and renegotiating. Take what you learned from this experience and use it toward the next house negotiation--it will be here sooner than you think!
If you are on the fence about whether to accept or reject a homebuying proposal, it is important to remember that a third option is available: countering the offer.
By countering a home offer, you can set the stage for a negotiation with an interested buyer. If a buyer accepts your counter-proposal, you and the buyer can move forward with a purchase agreement. Or, if a buyer rejects your counter-offer, you can always continue to seek out proposals from other potential buyers.
Before you counter a home offer, it is important to know what to expect after you make this decision. That way, you can feel confident about your decision to counter a homebuyer's proposal, even in a high-pressure situation.
Now, let's take a look at three tips to help you analyze a home offer and determine whether to counter it.
1. Assess the Housing Market
The housing market ultimately may play a key role in how a home seller approaches an offer. Because if a seller examines the real estate sector closely, he or she may gain actionable insights that can be used to differentiate a "fair" proposal from a "lowball" offer.
Look at the prices of comparable houses in your city or town, as well as the prices of recently sold residences in your area that are similar to your own. Then, you can use this information to take a data-driven approach to analyze an offer. And if you decide to counter an offer, you can rest assured that your decision is backed by relevant real estate insights.
2. Review Your Home's Pros and Cons
Oftentimes, it is beneficial to consider your house's age and condition as you review an offer. This will enable you to account for any potential home repairs and the costs associated with them – something a buyer also may do before he or she submits an offer on your home.
Don't forget to consider the strengths of your home as well. If you recently performed a series of home upgrades, you probably accounted for these house improvements when you set the initial asking price for your home. Thus, you should have no regrets about countering a home offer if it fails to match your expectations.
3. Consult with a Real Estate Agent
Hiring a real estate agent is crucial, particularly for a home seller who is uncertain about how to proceed with a home offer. A real estate agent can help you evaluate all aspects of a home offer and make it easy to submit a counter-proposal as needed.
Typically, a real estate agent will offer expert home selling recommendations. He or she also will respond to your home selling concerns and questions and ensure you can make an informed decision about any offer, at any time.
Ready to review an offer on your house? Use the aforementioned tips, and you should have no trouble deciding whether to counter a homebuying proposal.