Carol-Ann Palmieri & Al Mussi's Blog
If you find your dream house, there is no need to leave anything to chance. But if you submit a "lowball" homebuying proposal, you risk missing out on the opportunity to acquire your ideal residence.
Putting together a competitive offer to purchase can be easy. Now, let's take a look at three tips to help you craft an aggressive homebuying proposal.
1. Study the Housing Market
The housing market fluctuates constantly. If the real estate market favors buyers today, it may shift into sellers' favor tomorrow, or vice-versa. As such, you should study the housing market, determine whether it favors buyers or sellers and craft a homebuying proposal accordingly.
Oftentimes, it helps to look at the prices of recently sold houses in your area, as well as how long these homes were listed before they sold. With this housing market data in hand, you may be better equipped than ever before to differentiate a buyer's market from a seller's market. And as a result, you can boost the likelihood of submitting a competitive homebuying proposal.
2. Know Your Budget
If you know how much you can spend on a house, you can minimize the risk of submitting an offer to purchase that stretches beyond your financial limits.
To establish a homebuying budget, it generally is a good idea to get pre-approved for a mortgage. Banks and credit unions can teach you everything you need to know about different mortgage options and help you select the right mortgage. Plus, if you have any questions as you evaluate your mortgage options, banks and credit unions are happy to respond to your home financing queries.
3. Collaborate with a Real Estate Agent
If you hire a real estate agent, you can submit a competitive offer to purchase on any house. In fact, a real estate agent can offer in-depth housing market insights to help you put together an aggressive homebuying proposal that may receive an instant "Yes" from a seller.
A real estate agent is a homebuying expert who understands what it takes to purchase a home in any housing market. He or she first will meet with you, learn about you and your homebuying goals and create a personalized property buying strategy. Next, a real estate agent will help you pursue houses in your preferred cities and towns until you find one that matches your expectations. And after you discover your ideal residence, a real estate agent will make it simple for you to submit an offer to purchase that fulfills the needs of all parties involved.
Of course, if your offer to purchase your dream home is accepted, a real estate agent will guide you through the final steps of the homebuying process. Or, if your homebuying proposal is rejected, a real estate agent will help you reenter the housing market.
Avoid the danger of submitting a lowball offer to purchase your dream house – use the aforementioned tips, and you can craft a competitive homebuying proposal and move one step closer to acquiring your ideal home.
If you plan to submit an offer to purchase a home, there is no need to leave anything to chance. And in most instances, it is a good idea to put your best foot forward with your offer to purchase. That way, you can boost the likelihood of receiving an instant "Yes" from a seller and moving one step closer to acquiring your ideal residence.
Now, let's take a look at three tips to help you put together a competitive homebuying proposal.
1. Study the Housing Market
The current state of the housing market may impact the definition of a competitive offer to purchase. For instance, if the housing market favors buyers, you may face limited competition to acquire your ideal residence and can craft your offer to purchase accordingly. On the other hand, if the housing market favors sellers, you may need to submit an offer to purchase at or above a seller's initial asking price to secure your dream home.
Take a close look at the housing market and analyze market data. Then, you can differentiate a buyer's market from a seller's market and determine how much to offer for a house.
2. Weigh a House's Pros and Cons
A home has its strengths and weaknesses, and as a property buyer, you should dedicate time and resources to learn about all aspects of a residence. By doing so, you can determine whether a residence is right for you and submit an offer to purchase based on a house's age and condition.
Consider any home repairs that may need to be completed as well. If you understand the costs of potential home improvements, you can craft an offer to purchase that accounts for these tasks.
3. Collaborate with a Real Estate Agent
Submitting a competitive offer to purchase sometimes can be difficult for experienced and first-time homebuyers alike. Fortunately, if you work with a real estate agent, you can get the help you need to create an aggressive offer to purchase.
A real estate agent understands the ins and outs of buying a house and can offer expert insights into the property buying journey. He or she will teach you about the real estate market and respond to your homebuying concerns or questions. In addition, a real estate agent will help you find your dream home, set up house showings and keep you informed about residences that become available and fit your homebuying criteria.
Furthermore, a real estate agent can provide in-depth housing market data and insights. He or she ultimately can help you take the guesswork out of crafting a competitive homebuying proposal. And as a result, a real estate agent will do everything possible to ensure your offer to purchase matches a seller's expectations.
Ready to submit an offer to purchase your dream residence? Take advantage of the aforementioned tips, and you can bolster your chances of acquiring your ideal residence in the foreseeable future.
Receiving a low offer on a home can be frustrating for a seller. But, you’re likely to see at least one or two offers on your property that are lower than you would like.
Right now, the housing market is filled with young professionals burdened with student loans, rising costs of living, and stagnating wages. So, it’s no wonder that they’re trying to save money anywhere they can.
In today’s post, we’re going to talk about what to do when you get a low offer so you can set yourself up for a sale that you’re happy with.
Don’t refuse outright
The first thing to know about low offers is that they can sometimes turn into something that both you and the buyer are happy with. Many successful home sales started at a number that the seller considered too low, but--through negotiation--was brought to a higher price and better deal overall.
Many sellers are uncomfortable with the idea of negotiation. Most people seldom negotiate prices unless they are buying a car, and even then would prefer to avoid the hassle.
For others, negotiation is a normal part of everyday life. Flatout refusing an offer, especially if you aren’t receiving many other higher offers, could be a missed opportunity.
Compare your asking price with similar homes nearby
Odds are that you and your agent have already done your research and found an asking price that is comparable in your neighborhood. But home prices fluctuate. To reassure yourself that your asking price is fair, take another look at homes up for sale that are around the same age and size of your home.
Take time to craft a counteroffer
Once you’ve had time to talk the offer over with your family and real estate agent (and maybe vented a bit), it’s time to come up with a counteroffer.
There are a few options for making a counteroffer that don’t involve significantly lowering the amount you stand to gain from the home sale. First, you could offer to relieve the buyer of some of the closing costs, such as paying for the inspection. Or, if you planned on leaving new appliances in the home, you could lower your asking price but take the appliances when you move.
Weigh your options
If the buyer still won’t raise their offer close to your asking price, it’s probably a good time to move on and rethink your sale strategy.
Take some time to consider the sale as a whole. If you aren’t receiving many other offers, it might be time to consider lowering to price or rethinking your marketing plan. You might consider repainting and taking new photos, or changing up your listing to highlight some other features of the house.
If you get an offer to buy your house, there is no need to make a snap decision. Instead, it generally is a good idea to allocate the necessary time and resources to analyze an offer and determine the best course of action.
Ultimately, there are lots of reasons why you should analyze a home offer, and these include:
1. You can boost the likelihood of getting the best price for your house.
An offer may fall at, above or below your house's initial asking price. However, regardless of the offer that you receive, it pays to perform a full evaluation to ensure you can maximize the value of your residence.
For many home sellers, it is beneficial to conduct a home appraisal prior to listing a residence. That way, when a home offer arrives, a seller can compare the proposal to a property valuation and proceed accordingly.
2. You can weigh the pros and cons of all of your options.
Let's face it – deciding whether to accept, reject or counter a homebuying proposal can be tough. Luckily, analyzing an offer enables you to weight the pros and cons of each option, making it easier than ever before to make an informed choice.
Oftentimes, creating a list of pros and cons can be helpful. This list will enable you to assess the advantages and disadvantages of each potential home selling decision. Then, you can use your list to guide the decision-making process.
3. You can receive expert housing market insights before you finalize your decision.
Imagine what it would be like to take a data-driven approach to decide whether to approve a homebuying proposal. Now, you can, thanks to the wealth of housing market data that is readily available to sellers.
As a home seller, you should have no trouble examining the prices of comparable houses that recently sold in your city or town. You then can use this housing market data to determine whether a proposal is "fair" based on the current real estate market's conditions.
Of course, as you assess a home offer, it often helps to collaborate with a real estate agent. This housing market professional knows exactly what it takes to sell a house – regardless of the real estate market's conditions. As such, he or she will enable you to conduct an in-depth review of any homebuying proposal, at any time.
A real estate agent also is happy to help you after you determine whether to accept, reject or counter a proposal. If you accept an offer, a real estate agent will help you move forward with the home selling journey. Or, if you reject an offer, a real estate agent will show you how to promote your house to potential buyers to boost your chances of receiving better proposals in the future. And if you counter an offer, a real estate agent can negotiate with a buyer's agent on your behalf.
Evaluate a home offer closely – you'll be glad you did. If you perform a deep analysis of a homebuying proposal, you can assess a home offer from multiple angles and make the best-possible decision based on your individual needs.
If you’re a first-time homebuyer you might be worried or anxious about the process of making an offer on a home. After all, negotiating isn’t something most of us look forward to on a day to day basis and we try to avoid it when possible. When it comes to buying a home, however, negotiating is usually part of the process.
One of the benefits of working with a real estate agent is that they have the knowledge and expertise to help you out through the negotiation process. Not only will they help you formulate your offer, but they’ll also present the offer for you and handle the in-person negotiations.
Buyer’s vs seller’s market
Whether or not the odds are in your favor depends on many things. One important factor is the state of the real estate marketing. In a seller’s market, which is what we’re in right now, there are more buyers looking for homes than there are sellers trying to sell them.
However, you can still edge past the competition in a seller’s market if you plan accordingly. This is when negotiation comes into play, and when effective negotiation can get your offer accepted where others are declined.
Time is of the essence
When you’re shopping for a home in a seller’s market, you’ll need to be swift with your offer and counteroffers to stay ahead of other prospective buyers. However, being too hasty with your offers can seem imposing or reckless. It’s better to take a day longer to come up with a more effective offer than it is to make an offer that looks bad to the seller.
Be clear and concise
Just as you’re nervous making offers on a home, sellers are usually nervous fielding them. So, if you want to make things easier for you and your seller, make sure your offer is simple and straightforward.
This involves removing unnecessary contingencies and sticking to the contract basics--inspection, appraisal, and financing. If the seller receives another offer that is riddled with contingencies, they might prefer to work with you since you presented them with a simple contract.
Having your paperwork in order, getting preapproved, and making yourself available as much as possible will go a long way in the negotiation process. Now more than ever it’s important to be well-organized.
Do your homework on the house and neighborhood you’re interested in. Make sure you know if there is a lot of interest in the area and the house in particular. This will let you know how much breathing room you have.
Getting preapproved will not only help you know the limits you can offer but it will also signal to the seller that you’re a serious buyer.