HOW TO KNOW WHAT TO OFFER WHEN BUYING A HOME.
So you’ve found “the one” and now it’s time to put together an offer. Here are some things to think about and talk to your agent about before you hit SUBMIT.
? What have similar homes in the area or neighborhood sold for recently? Is the asking price in line with the rest of the neighborhood?
? How long has the home been on the market? If it’s 1 day and there have been multiple offers, you probably need to offer above asking. But if it’s been a few weeks, you have more negotiating power.
? Are there any other offers on the table? Multiple offers change everything (keep reading for some tips).
? At what price would you feel as though you “overpaid” for the home? Don’t get caught up in the game of winning the house, make sure you are making decisions based on your needs so that you avoid buyer’s remorse.
? What is the market like in the area? Is it a hot seller’s market, or are homes sitting longer?
If you’re heading into a multiple-offer situation, here are a few ways of getting your offer accepted:
Offer above asking and / or include an escalation clause.
Defer closing terms and timeline 100% to sellers.
The fewer days in the inspection period, the better. Consider covering up to a certain amount of the items / cost that may come back on the inspection report to show the seller you aren’t going to “nickel and dime” them.
Conventional loans look the best to a seller. Try to save for a larger down payment or ask for a “gift” from your family.
If you’ve been frustrated with the buying process in our recent market, I would love to talk and share how buying with me is different.