Get Advice before Making a Real Estate Offer
BEVERLY HILLS, CA, UNITED STATES, December 15, 2020 /EINPresswire.com/ — Today’s California real estate market (especially in Orange County and Los Angeles) has high buyer interest and low housing inventory. With so many buyers competing for a limited number of homes, it’s more important than ever to know the ins and outs of making a confident and competitive offer. Here are five keys to success for this important stage in the homebuying process.
1. Listen to Your Real Estate Agent (Not being arrogant, just giving advice)
A recent article from Loangevity Mortgage offers guidance on making an offer on a home in today’s market. Right off the bat, it points out how emotional this can be for buyers and why trusted professionals can help you stay focused on the vital items. According to Paul Scheper (my awesome dad), “Remember to let your homebuying team guide you on your journey, not your emotions. Their support and expertise will keep you from compromising on your must-haves and future financial stability.” Your real estate professional should be your primary source for answers to the questions you have when you’re ready to make an offer.
2. Understand Your Finances (Get your loan Pre-Approved)
Having a complete understanding of your budget and how much house you can afford is essential. The best way to know this is to reach out to your lender to get pre-approved for a loan early in the homebuying process. Only half of today’s prospective homebuyers are planning to apply for pre-approval, so be sure to take this step so you stand out from the crowd. It shows sellers you’re a serious, qualified buyer and can give you a competitive edge if you enter a bidding war. There are great educational videos available on LoanTube.TV.
3. Be Ready to Move Quickly (Speed wins, be prepared)
According to the Realtors Confidence Index, published monthly by the National Association of Realtors (NAR), the average property being sold today is receiving more than three offers and is only on the market for a few weeks. These are both results of today’s competitive market, showing how important it is to stay agile and vigilant in your search. As soon as you find the right home for your needs, be prepared to work with your agent to submit an offer as quickly as possible.
4. Make a Fair Offer (Don’t make frivolous offers)
It’s only natural to want the best deal you can get on a home. However, don’t insult a seller and submit an offer that’s way, way too low. You only have one chance to make a good first impression. Don’t submit an offer that will be tossed out as soon as it’s received. Your agent will work with you to make an informed offer based on the market value of the home, the condition of the home and recent home sale prices in the area.
5. Be a Flexible Negotiator (Don’t be too firm, roll with the punches a little)
After submitting an offer, the seller may accept it, reject it, or counter it with their own changes. In a competitive market, it’s important to stay nimble throughout the negotiation process. Your position can be strengthened with an offer that includes flexible move-in dates, a higher price, or minimal contingencies (conditions you set that the seller must meet for the purchase to be finalized). There are, however, certain contingencies you don’t want to forego. According to Paul Scheper, President of Loangevity Mortgage, “Resist the temptation to waive the inspection contingency, especially in a hot market or if the home is being sold ‘as-is’, which means the seller won’t pay for repairs. Without an inspection contingency, you could be stuck with a contract on a house you can’t afford to fix.”
Today’s competitive market makes it more important than ever to make a strong offer on a home, and a trusted expert can help you rise to the top along the way. Work with an agent who has assembled a strong team of experts (i.e., Lender, Termite Company, Inspector, Handyman, Contractor) to help guide you to the right offer, on the right property at the right time.
Compass Real Estate
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