You’ve been searching for a new home and now you’ve found it! You’ve prepared for this moment by getting prequalified for a mortgage you can afford. But wait - you’re in a competitive market and now it’s time to make the offer. What next!?
Negotiating a home sale involves a little give-and-take from both the buyer and the seller. You can increase your success rate by learning how to play the game with our tips below:
1. Make sure your real estate agent understands your position.
Having an agent on your side who knows exactly what your priorities are is vital during the deal.
- Once you decide to make an offer on a home, your agent should proactively share important information about the process
- A good agent should also know how motivated the seller is and why he or she is selling their home
- Your real estate agent should understand how much you are willing to spend and how much you're willing to compromise
2. Act Fast:
Buyer demand continues to outpace the supply of homes for sale, causing buyers to compete for their dream home. You’ll have the best chance of winning your favorite home in a hot market if you’re the first to see it.
- Know what you want so that when you see it, you can act quickly
- Be realistic - you're most likely not going to get everything you want in your home. Know what you can live with and what you can't. If you hesitate too long, someone else will snatch it up
- Make an offer that expires within a short deadline -- like 24 hours
3. Make a solid offer:
Your real estate agent will be instrumental in helping you put in a solid offer based on their experience and other key considerations such as recent sales of similar homes, the condition of the house and what you can afford.
- The best real estate agents know the value of the home they are attempting to buy which makes their services so important
- Make a clean offer. Don't ask for closing costs or a home warranty if you know there are multiple offers on the property
- In a competitive market, your agent knows that making the first offer should be your BEST offer
4. Prepare for counteroffers:
Because this is a seller's market, keep in mind that you will most likely need to negotiate if a seller makes a counteroffer. If you get caught in a bidding war, and you hit your limit, walk away. Again, your agent will be key in the negotiation process, giving you guidance on the counteroffer and the contract terms.
- If your offer doesn't receive a counteroffer from the seller, you know your offer was too low
- Once the seller believes you are capable of arriving at a price agreeable to them, they will be willing to negotiate
- Consider writing an offer letter telling the owner how important getting this particular house is to you (raising your family, getting involved in the neighborhood, etc.)
Because of the tight housing market, you can't delay when you find the house you want to call home. Work closely with your real estate agent in getting the purchase offer submitted and rely on his or her expertise when it comes time to negotiate any counteroffers. The best plan of action is to be ready, stay vigilant and start saving those empty cardboard boxes!Are you ready to start your path to homeownership? If so, click the button below to find the loan officer nearest you!