Seal the Deal: Tips to Make Your Offer Stand Out
Imagine this - You’ve finally found your dream house. It has all that you’ve wanted in your home. It’s just the right size, it’s located in a wonderful neighborhood, and it’s within your budget. But there’s a hitch. The market is very competitive, and time is not on your side. You must act quickly. What do you do? Do you offer above asking price? Waive contingencies? How much is too much? Even the most seasoned buyers may find themselves making costly mistakes. What are those missteps and how can you fortify yourself to avoid them? Here are some things to watch out for:
1) Know Your Budget: This is the first step to a successful purchase. A trusted and experienced lender will partner with you to ensure you have a successful buying experience. Securing an Approval Letter is essential – while some online companies will offer quick approval letters, most sellers prioritize buyers who can show proof of financing from a reputable lending company. This demonstrates that the buyer is qualified to purchase the seller’s home and is not simply wasting their time.
2) Don’t Attempt to Time the Market: Waiting for prices or rates to drop can be a risky gamble. Every housing market is unique and there are many aspects that have an influence. If you’ve been keeping up with national headlines, you might have a different perspective on the housing market than what we're currently seeing here in Omaha. While the national narrative might suggest a shift, locally, we’re still experiencing a low inventory of homes for sale—meaning we're very much in a seller’s market.
3) Consider Inspections: Forgoing home inspections may prove to be a costly mistake. While it may be tempting to waive an inspection to make your offer more appealing to the seller, getting a professional home inspection provides you with a comprehensive evaluation of the home’s condition. A buyer may risk future expensive repairs resulting from hidden electrical, plumbing or structural issues. These and other factors can be used in the negotiation process of your offer. According to Forbes.com, home inspections are “such a pivotal point that many home purchase agreements include a contingency that lets buyers dissolve the purchase agreement if major issues are found during the inspection.”
4) Partner with a Real Estate Agent: While the market may be competitive, there are still opportunities to negotiate on price, closing costs, and other terms. A trusted real estate agent will guide you through these negotiations, making certain that your best interests are represented. Working with an agent gives you a strategic advantage. They can assist you in navigating market trends, presenting strong offers, and can offer advice on competitive strategies.
5) Consider the Timing of an Offer: Timing can be a bit tricky. While you may be tempted to make an offer quickly, a hasty decision may lead to a bad decision. Make certain that you have thoroughly assessed both the property and your finances. However, the longer you wait before making an offer, the greater the chance that you’ll be competing against more offers. By having your finances in place, you will be better positioned to confidently make a competitive offer more quickly.
6) Research the Neighborhood: Spend some time investigating your preferred neighborhoods by researching crime rates, planned developments, zoning laws, commute times, schools, noise levels, shopping availability, and amenities. This will aid in preventing unwanted surprises later.
7) Remember the ‘Hidden’ Costs: Don’t overlook expenses like homeowners’ insurance, property taxes, HOA fees, and closing costs. Many buyers focus only on the price of the home and are caught off guard by these additional expenses. By partnering with a qualified financial lender and a trusted real estate agent, you'll be better equipped to avoid common mistakes and position yourself to make a strong, informed offer.
While buying a home in a competitive market can feel daunting, with the right preparation and guidance, you can position yourself to succeed. By working with a trusted team, you’ll be able to walk through the process with confidence. Remember, act strategically and trust the experts who have your best interests at heart.
Sandi Downing Real Estate/Keller Williams Greater Omaha
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