Rachel Lutts' Blog
Making an offer on a home you’d love to buy is arguably the most stressful part of the buying process. You’ll be worrying about making the right offer, whether you’ve presented yourself in the best possible light, and just how much competition you’re up against.
Today we’re going to help you alleviate that anxiety by giving you the most common real estate offer mistakes to avoid, and show you how you can increase your chances of getting the perfect home for you.
1. Do your research on the house
You have a lot of research to do before making an offer on a home. You’ll want to know the price the home formerly sold for and improvements that have been made and that will need to be made if you move in.
It also helps to know the seller’s situation. Are they on a deadline and moving out-of-state? If so, they might be tempted to take one of the earlier offers they receive.
2. Know your own financial limits
Before you ever make an offer you’ll need to know how much you can spend. This isn’t just a matter of offering the maximum amount you’re preapproved for. You’ll have to factor in moving expenses, final payments on your last rent or mortgage, changes in utility costs, and more.
3. Don’t offer your full preapproval amount
Sellers who know that you’ve offered your maximum preapproval amount may be wary of selling since they know you lack room to negotiate your budget and therefore might have a higher chance of backing out of the offer. They might favor other buyers who have room to negotiate and account for unexpected changes in their budget or of rising interest rates.
4. Avoid aggressive negotiation
We know the stakes are high for everyone involved in making a real estate deal. However, sellers are more likely to accept the offer of someone they trust and like over someone who seems to be trying to gain leverage.
Always be cordial with your offers and support them with numbers--explain to the seller why you chose the number you did, so that they can understand your reasoning.
5. Don’t attempt to gain leverage by waiving a home inspection
By law, you are allowed to have a home professionally inspected before purchase. Waiving this right is sometimes misconstrued as a way to tell a seller that you trust them and don’t want to cause them any unnecessary headaches.
The reality of the matter is that if you truly do want to own their home, sellers understand that you want to know what you’re buying.
6. This isn’t the only house you can be happy in
Hunting for a home is hard work. Once you find one that seems perfect for you or your family, it can seem like everything depends on your offer being accepted.
However, the fact is there are endless houses on the market, and next week a new one could be put up for sale that is even better than the home you’re hoping for now.
If your offer isn’t accepted and you don’t feel comfortable committing to a higher price, move on to the next house knowing that you made the best decision under the circumstances.
Once you’ve made up your mind that you want to buy a house, either to decrease your rent or increase your income, the next hurdle will be choosing the right property. You will find no shortage of glossy brochures or recommendations from all sides telling you why this flat or that house is best for you. So, which of the many voices should you pay attention to? Here are some guiding principles to help you make the right choice:
What are your home ownership goals?
Why do you want to buy a house? Do you want to live in it for the rest of your life, or is it just a place to start as you save up for your dream home? Is it your retirement paradise or is it an investment that you will flip for a profit after a year or two? Alternatively, you could just be in the market for a getaway cabin for your family.
Problems or challenges you’re dealing with in your current residence may contribute to some of these goals. Put them down in a list as some of the criteria any potential new home has to meet.
What kind of neighborhood do you want to live in?
If you’re buying a dream home or retirement retreat, this will be particularly important as this is where you’ll be spending the rest of your life. You want to live in a place where your neighbors hold dear the same aesthetic values as you. If you enjoy your peace and quiet, you might not want to live in an area where residents are allowed to hold loud parties until the wee hours.
How seriously is security taken in that neighborhood? How clean is the area? Is there a management committee or neighborhood association that looks into such issues?
Have you exhausted your options?
Before you seal any deal, ask yourself, “Can I do better?” You may have found a house that nearly checks all your must-have boxes, but there could be one down the street that does the same at a considerably lower asking price. Don’t assume there’s no better deal out there. Be willing to keep looking even if you feel you’ve been scouring the market for too long.
Write down your home ownership goals and hold them up against all the homes you’re considering for purchase. Make sure your real estate agent understands your goals so they can help you find the best home.
Pursuing a house can be difficult, regardless of the current housing market's conditions. Thankfully, homebuyers who plan ahead may be better equipped than others to enjoy a quick, seamless and successful homebuying experience.
Ultimately, there are many reasons to prepare for buying a house, and these include:
1. You can determine where you want to live.
A homebuyer who knows where he or she wants to live can tailor a home search accordingly. As a result, this buyer can speed up the process of acquiring his or her dream residence.
When it comes to planning ahead to buy a home, it generally helps to know where you want to go. If you make a checklist of home must-haves and wants, you may be able to hone your home search to specific cities and towns. Then, you can pursue residences in these areas and find your dream house faster than ever before.
2. You can enter the housing market with a budget in hand.
You know that you want to buy a house, but you still have no idea how you will pay for a residence. Fortunately, if you plan ahead for the homebuying journey, you can get your finances in order and enter the real estate market with a budget at your disposal.
Generally, it is a good idea to get pre-approved for a mortgage prior to pursuing a residence. A mortgage provides you with a set limit that you can spend on a house. Thus, a mortgage can help you minimize the risk that you'll spend beyond your means to acquire your dream residence.
Obtaining a mortgage can be quick and easy too. Meet with banks and credit unions, and these financial institutions can teach you about a broad array of mortgage options. Next, you can choose a mortgage and kick off your home search.
3. You can find an expert real estate agent to help you along the homebuying journey.
If you plan to enter the housing market, you may want to hire an expert real estate agent sooner rather than later. With an expert real estate agent at your side, you can streamline the homebuying cycle.
A real estate agent knows exactly what it takes to purchase a superb residence at a price that fits your budget. He or she first will learn about your homebuying goals and provide insights into the local housing market. This housing market professional then can customize a home search to ensure that you can achieve your desired results.
Let's not forget about the comprehensive support that a real estate agent delivers throughout the homebuying journey, either. A real estate agent will set up home showings and offer homebuying recommendations at each stage of the homebuying journey. And if you discover your ideal residence, a real estate agent will help you put together a competitive offer.
There are many great reasons to plan ahead for the homebuying journey. And if you start planning today, you may be able to enjoy a stress-free homebuying experience.
Buying a home can be fast and easy for just about anyone. However, becoming the "perfect" property buyer can be challenging, particularly for those who are shopping for a house for the first time.
The perfect homebuyer understands what it takes to land his or her ideal house at the best price. As such, he or she will know how to handle difficult homebuying situations and streamline the process of going from property buyer to property owner.
Ultimately, becoming the perfect homebuyer may be easier than you think – here are three tips to help you acquire your ideal residence quickly and effortlessly.
1. Study the Real Estate Market Closely
The real estate market has many ups and downs, but the perfect homebuyer will know the ins and outs of the housing sector. By studying the real estate market closely, this property buyer will be able to identify the right opportunities and overcome any potential homebuying hurdles.
Spend some time looking at the prices of homes that are currently available. This will allow you to find homes at price that you like – and homes at prices that you don't like – and map out your homebuying journey accordingly.
Also, take a look at homes that recently sold in cities or towns where you'd like to live. This will enable you to differentiate between a buyer's market and a seller's market.
2. Know What You Can Spend on a Home
The perfect homebuyer should have no trouble avoiding the temptation to overspend on a house. In fact, this homebuyer will understand how to get pre-approved for a mortgage, which will ensure that he or she can establish a property buying budget.
To get pre-approved for a mortgage, a homebuyer should meet with several banks and credit unions. Each meeting will enable a homebuyer to learn about the mortgage options that are available from a variety of lenders. Plus, a homebuyer can ask questions and discuss myriad mortgage options with these lenders.
With pre-approval for a mortgage, a homebuyer will be able to enter the housing market with a budget in hand. Then, this property buyer can narrow his or her search for the ideal residence.
3. Collaborate with a Housing Market Professional
Becoming the perfect homebuyer may require you to receive housing market guidance at times. Fortunately, if you work with a real estate agent, you can get top-notch support as you navigate the homebuying journey.
A real estate agent is a housing market professional who will go above and beyond the call of duty to assist you. He or she will be able to provide homebuying recommendations to help you make informed decisions. Also, a real estate agent will be able to keep you up to date about new houses as they become available, guaranteeing that you can speed up the homebuying process.
When it comes to buying a home, it is essential to do whatever it takes to acquire a first-rate residence at a budget-friendly price. Take advantage of the aforementioned tips, and you can move one step closer to doing just that.
Before you even set out to buy a home, you may think that you need to look at a magic number of homes in order to find the house that’s right for you. There’s always a fear among buyers that they didn’t look at enough homes before settling on one. The number of homes that you look at is up to you. There is no magic number that will dictate finding the perfect home. The most important thing is to trust your own intuition. In A seller’s market, you also may not have much choice. When inventory is low, if you find a home you love, you’ll need to move to make an offer on it!
The Average Buyer
People looking at condos take between 1 and 3 months to find the property that’s right for them. Those looking for single family homes tend to take a bit longer- between 3 and 6 months to find a home. Buying a traditional house seems to spark more questions and more uncertainty, which leads buyers to take their time to find what they’re looking for.
Know Where You Want To Live
Before you start your home search, you should have a good idea of where you want to live. Have a list of cities, towns, and neighborhoods narrowed down to make your search a bit easier from the start. Take a ride around potential neighborhoods and get a feel for them. See the stores, restaurants, and nearby parks to really understand the area.
Match Your Lifestyles
Where you choose to live has a lot to do with your lifestyle. Think of the following:
- Where your friends live
- Where your family lives
- Where you work
- What you do for fun
Whatever you love and whatever you love to do should be a factor in your home search. If you love the beach, you don’t want to be a three hour drive away if you can help it. You also don’t want a 2-hour commute to work. Find the balance to make your life happier in the new space you choose.
Make A List
It sounds simple, but making a list of what you must have, what you’d like, and what would be a bonus can really help you in your home search. This holds true whether you look at 2 homes or 50 homes. The number of homes that you look at isn’t as important as your needs and wants. Buying a home is a huge investment and you need to be happy with your decision. While it’s not completely advisable to buy the first house that you see, if you have a good idea of what you want in a tough market, it’s best to put an offer in.