When you’re shopping for a home, you may become interested in a property for sale that someone else is also considering. In fact, there may be several other buyers entertaining the idea of making an offer.
In such a competitive situation, what should you do if you really love that home?
Obviously, you’ll need to move quickly and make some fast decisions.
Start by making certain the property fits within your price range. The last thing you want is to have an offer accepted and find out it is beyond your budget. That’s why it’s a good idea to arrange for financing before you go home shopping.
Next, you want to make an offer that is so enticing to the sellers that they’ll put your offer at the top of the pile, if not close to it. So, what makes an offer enticing?
Obviously, price is a big factor. You want to go in at a price that’s attractive to the sellers, without overpaying. Imagine finding out later that the nearest offer to yours was $15,000 less. Ouch!
Depending on the market trends, your offer price will need to be at asking, slightly above asking, or in very strong Seller's markets a lot above asking. Find out what similar homes in the area recently sold for — what Realtors® call “comparables” — and use those as a guide. DO NOT rely on a specific app algorithm to choose your offer price. The data captured is very broad and can be off as much as 23% or more. Trust your Real Estate professional!
It’s also important that your offer contains few, if any, issues that may be concerning to the sellers. The ideal offer will feature:
• No conditions.
• A closing date that’s convenient for the seller.
• A deposit amount that shows you’re a serious buyer.
• Acceptance of any of the buyer’s “exclusions”. For example, they want to take the chef stove with them.
• Evidence you can get financing. Many lenders offer a “Mortgage Pre-approval Certificate”.
Although a “no conditions” offer is the most attractive, including a condition on passing a professional home inspection is usually not a problem, so long as the inspection is done quickly. Avoid adding other conditions, such as “subject to financing approval” or “subject to the sale of buyer’s existing property”.
If you're ready to increase the likelihood that you’ll find — and, more importantly, get — your next dream home, contact Laura and take the first steps today.
For a detailed overview of the Buying Process click here
to read how Laura gets her Buyers into homes.