If you're on the lookout for your dream house, it pays to operate as a competitive homebuyer. And if you find your ideal residence, you should not hesitate to submit a competitive offer to purchase this house.
Ultimately, there are many reasons why you should submit a competitive offer to acquire your dream house, and these include:
1. You risk alienating a seller.
Dozens of homes are available in cities and towns across the United States, yet an individual's dream house may only be available for a limited time. Therefore, when it comes to submitting an offer to acquire your dream house, it usually is a good idea to put your best foot forward. Because if you submit a "lowball" homebuying proposal, you risk receiving an instant "No" from a seller.
Although you likely want to avoid breaking your budget to purchase your ideal residence, you also should strive to avoid a lowball offer. Fortunately, an informed homebuyer can learn about the local real estate market and use this information to assess the prices of houses in a particular area. And with comprehensive housing market data in hand, this homebuyer can submit an offer to purchase that may match or exceed a seller's expectations.
2. You may lose your dream house to a rival buyer.
Once you discover your dream house, you should submit a competitive offer on it right away. If you wait too long to provide a competitive homebuying proposal, you risk losing your ideal residence to a rival buyer.
Remember, the housing market is fierce, and the top residences typically will sell quickly. But if you submit a competitive offer, you can reduce the likelihood that you'll squander the opportunity to acquire your dream house.
3. You may wind up having to spend more to acquire an alternative house.
The real estate market fluctuates constantly, and failure to submit a competitive offer on a house today may prove to be a costly mistake. In fact, if a buyer's market transforms into a seller's market, you may be forced to pay more to purchase your ideal home in the foreseeable future.
For those who are uncertain about what differentiates a competitive offer to purchase from an ordinary homebuying proposal, there is no need to stress. If you hire a real estate agent, you can get the help you need to submit a competitive homebuying proposal any time you choose.
Generally, a real estate agent will serve as an expert guide throughout the homebuying journey. This housing market professional will teach you about the real estate sector and help you narrow your home search. Then, when you discover your dream house, a real estate agent will help you put together a competitive offer to purchase. He or she will even negotiate with a seller's agent on your behalf to ensure you can get the best price on your dream residence.
Ready to simplify the process of buying a house? Collaborate with a real estate agent today, and you can receive extensive support at each stage of the homebuying journey.
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.
Buying is home is a lengthy and, at times, stressful process. So, it can be discouraging when your offer is rejected.
If you’ve recently had a purchase offer rejected by the homeowner, don’t worry--you have options.
In this post, we’re going to cover some of those options so you can start focusing on your next move and potentially even make a second offer that gets accepted.
1. Reassess your offer, not the seller
You could spend days guessing the reasons the seller might not have accepted your offer if they didn’t give you a straightforward answer.
However, your time is better spent addressing your own offer. Double check the following things:
Is your offer significantly lower than the asking price?
If so, is it lower than comparable sale prices for homes in the neighborhood?
Does your offer contain more than the usual contingencies?
Once you’ve reassessed, you can determine if a second offer is appropriate for your situation, or if you’re ready to move onto other prospects with the knowledge you’ve gained from this experience in hand.
2. Formulate your second offer
So, you’ve decided to make another attempt at the house. Now is the time to discuss details with your spouse and real estate agent.
Out of respect for the seller’s time and their timeline for selling the home, you should treat your second offer as your last.
So, make sure you’re putting your best offer forward. This can mean removing those contingencies mentioned earlier or increasing the amount. However, be realistic about your budget and don’t waive contingencies that are necessary (commonly appraisals, inspection, and financing contingencies).
3. Consider including a personal offer letter
In today’s competitive market, many sellers are fielding multiple offers on their home. To set yourself apart from the competitors and to help the seller get to know your goals and reasoning better, a personal letter is often a great tool.
Don’t be afraid to give details in your offer letter. Explain what excites you about the house, why it is ideal for your family, and what your plans are for living there.
What shouldn’t you include in your offer letter? Avoid statements that try to evoke pity or guilt from the seller. This seldom works and will put-off most buyers to your offer.
4. Moving on is good time management
If you aren’t comfortable increasing your offer or if you receive a second rejection, it’s typically a good idea to move onto other prospects. It may seem like wasted time--however, just like a job interview that didn’t go as planned, it’s an excellent learning experience.
You’ll walk away knowing more about the negotiation process, dealing with sellers and agents, and you might even find a home that’s better than the first one in the process!