The price is right, and in such a competitive market, you want to make sure you make a good offer so that you can guarantee that your dream of making this house yours comes true! But, many prospective homeowners don’t understand what it takes to negotiate and actually get your offer accepted.
Below are 5 steps provided by Freddie Mac to help buyers make offers, along with some additional information for your consideration:
1. Get Pre-Approved
When you are looking at homes on-line or in-person, it’s important to know what price range you can afford.
Before you shop for homes, KNOW what you will actually qualify to buy. Get pre-approved with one of our preferred lending partners!
Getting pre-approved will not only show home-sellers that you are serious about buying, but it will also allow you to make an offer with confidence because you’ll know that you have already been approved for a mortgage in that amount. One of our strategic lending partners can help!
And, as you’ll see below, when you’re ready to make an offer, having a pre-approval in-hand will make your offer stronger than one without a pre-approval.
2. Determine Your Offering Price
“You’ve found the perfect home and you’re ready to buy. Now what? Your real estate agent will be by your side, helping you determine an offer price that is fair.”
You should always work with an experienced agent who can share with you key considerations (like similar homes recently sold in the same neighborhood or the condition of the house and what you can afford), your agent will help you to determine the offer that you are going to present.
3. Submit an Offer
“Once you’ve determined your price, your agent will draw up an offer, or purchase agreement, to submit to the seller’s real estate agent. This offer will include the purchase price and terms and conditions of the purchase.”
Talk with your agent to find out if there are any ways in which you can make your offer stand out in this competitive market! The Donnelly Group is active in the Anne Arundel County market and we can be instrumental in helping you put in a solid offer.
4. Negotiate the Offer
“Oftentimes, the seller will counter the offer, typically asking for a higher purchase price or to adjust the closing date. In these cases, the seller’s agent will submit a counteroffer to your agent, detailing their desired changes, at this time, you can either accept the offer or decide if you want to counter.
Each time changes are made through a counteroffer, you or the seller have the option to accept, reject or counter it again. The contract is considered final when both parties sign the written offer.”
If your offer is approved, Freddie Mac urges you to “always get an independent home inspection, so you know the true condition of the home.” If the inspector uncovers undisclosed problems or issues, you can discuss any repairs that may need to be made with the seller or even cancel the contract altogether.
5. Act Fast
The inventory of homes listed for sale has remained well below the 6-month supply that is needed for a ‘normal’ market. Buyer demand has continued to outpace the supply of homes for sale, causing buyers to compete with each other for their dream homes.
Make sure that as soon as you decide that you want to make an offer, you work with your agent to present it as quickly as possible.
Whether buying your first home or your fifth, having a local real estate professional who is an expert in his or her market on your side is your best bet in making sure the process goes smoothly. Contact The Donnelly Group today! We were recently awarded the Top Real Estate Team in the Mid-Atlantic! Let’s talk about how we can make your dream of homeownership a reality!