MAKING AN OFFER ON A HOUSE
Are you a homebuyer that wants to get your offer accepted? Well today I’m going to give you some tips on what not to do? so let’s get to it.
In a sellers market like we are seeing today, many buyers are facing a tough road to homeownership due to the low inventory and home buyer competition out there. Most homebuyers are going to face multiple offer situations and I want you to be prepared, so today I’m going to tell you What not to do in this current sellers market.
Home Buying tips
How to make a strong offer on a house…DON’T DO THIS
#1 Low Ball
Most sellers are going to price their home at market value because many buyers will still have a financing contingency so it will need to appraise. Some may price higher so you really want to check the housing market and see if similar homes are selling at the same price or close to the sale price as the home you are interested in purchasing.
One thing you do not want to do is LOW BALL. If a house is listed at $300k and you want to offer $280k because you want to get a deal. This is not the market you want to do that in because in this sellers market you are not going to win.
#2 Low Earnest Deposit
Earnest money is a good faith deposit when making an offer on a home that shows the seller that you are confident that you are going to get to the closing table. Typically we do no more than 1% of the purchase price but if you want your offer to stand out then put more skin in the game and offer more earnest money to set you apart from the competition.
#3 Home Buyer Concessions
This one is very difficult because some home buyers need the sellers to cover their closing costs but if you are able to come up with the closing costs yourself or not ask for the full amount, that might help you in this current market. If you do need closing costs covered by the seller then add them on top of the total offer you are making.
#4 15 Day inspection
There is no reason to take 15 days to inspect a home. Inspectors can get you a report in one day so keep it to a week or less just to allow time for the inspector to get out there. Home Sellers will want to clear this contingency quickly.
#5 Home Sale Contingency
I know that there are a lot of people that are moving right now and may have a house to sell before they can buy another. Unfortunately a seller will likely not choose your offer. I’m sorry to say that but it is the reality of the market right now. Look at it this way, if a seller gets multiple offers and most are without a home sale contingency, those offers are going to be more attractive to the seller because there is less risk of the deal falling apart.
So these are just a few things I want you to understand if you are buying in the current market. Just be prepared, I know it’s frustrating but it’s not impossible so keep trying because the right house is out there.
If you are reading this or watching this video then you may be looking to learn more about the St Johns County area of Florida so let me know how I can help
You can reach me at [email protected] or call me at (904) 747-0183