The Game-Winning Run: Tackling Offers and Buying a Home
You can barely feel your legs as you sprint towards home plate, the last 90 feet in your long journey around the bases and through the housing market towards homeownership. This last haul towards your main goal includes putting an offer on a home. Here are some tips our experts use when helping consumers put an offer on a property fitting their requirements.
Your Realtor will have access to what is known as Comparative Market Analysis (CMA), which gives inside knowledge of the market. The CMA allows you to see all listings including active, pending, and sold, to better assist you in determining how the local housing market is functioning. Examining the local listings and their sold versus list prices enables you to make an educated decision on an appropriate offer price on a similar property in the area.
When putting an offer on a home, there are many things to look at before deciding on the amount you are willing to present:
Average price of nearby properties – Take a look at the average price of nearby properties. This will give you a clearer idea of how homes are selling and the difference between the asking price and the price at which it was actually sold. Use this knowledge to put in a competitive offer the first time.
Similarity to other properties – Another factor to look at is the similarity between properties. If a nearby property has dramatic upgrades that do not coincide with the property you are looking at, the price or value of that home probably should not play a major factor into the price you offer. Similar features include number of baths and bedrooms, lot size, and any upgrades.
Buyer or seller market – If homes are being sold for well over the listed price, it is most likely a seller’s market. If there is little competition over the current housing inventory, this is considered a buyer’s market. Knowing this will actually help you establish your offer on a home. If the market is competitive and you are set on a property, bidding on the higher end of your budget will help you get noticed. Talk to your trusted team of industry professionals to discuss best moves at this stage.
Number of days on the market – If a home has been on the market for an extended period of time, chances are the sellers are more likely willing to sell the home for less simply to be done with the process.
Motivation – Knowing the motivation of both the buyer and the seller can help you navigate the market with more precision. Does either party intend to move quickly? Does one party have a strict timeframe to adhere to? Knowing the reasoning for why a house is being sold and why a buyer has entered the market can be extremely beneficial.
Overall, many market conditions play a factor in how aggressive you should be when putting an offer on a home. The important things to remember are to stay positive throughout the process and constantly consult with your team of experts. They will have been through the situation before and will best be able to support you and your financial needs through the process. The market can be extremely frustrating, especially now, with competition continuously growing. It is key to maintain a positive outlook. Have multiple offers been rejected? Do not give up! Try writing a letter to accompany your offer with specifics about you, your family, and your goals.
Your efforts will be rewarded. Following these steps will help you get an offer accepted and your goals of homeownership will be reached. You can proudly sprint across home plate knowing that you have successfully navigated the home loan process. Revel in the moment of crossing the plate knowing you have scored the run needed to win the game! Raise your hands up as your team rushes to high-five and congratulate you on your well-deserved win!