Expert Tips for Making a Successful Offer on a House
Buying a house is one of the most expensive and expansive investments we make during our lives. It should therefore come as no surprise that home buyers are looking for all the help they can get in order to come to a fair and satisfying agreement when buying a property.
Check out what our experts consider to be important points in today’s market for buyers who want to make an offer on a house that sellers can’t refuse.
If you’re currently house hunting, you’ve probably already heard how vital it is to have a knowledgeable Realtor by your side. And one of the things they’ll tell you is that the list price of a house is not always the sold price.
In fact, most of the time the sold price is below list price.
But how far can you go and what do you need to know in addition to what your Realtor is telling you? Here’s an overview of a few important points.
- Choose the houses you want to make an offer on very carefully.
Making an offer on a large number of houses usually leads to nowhere and is basically just a waste of time of all involved parties.
What has shown to bring significantly better results is to opt for a smaller number of houses that fit both your needs and your budget, and that are actually priced to sell.
… Wait – don’t all sellers want to sell their homes as soon as possible?
There are sellers who are in absolutely no rush, as they want to sell their (usually overpriced) house only to the highest bidder – whenever he or she may come. This battle is lost before it is fought.
One of the most valuable pieces of advice a real estate expert can give you is to keep looking for houses in your price range and for home owners who actually want to sell now. Opting for one of these immensely increases your chances of making a successful real estate offer.
- Consider your seller’s motivation when making an offer.
Knowing who you are dealing with is really important.
Find out who the seller is you want to negotiate with. What are his or her goals? What role do time and money play for them?
Your Realtor, as the bridge between you and the seller, can tell you what the seller’s priorities are and how they are in line with what you have to offer.
In any case, your approach needs to be tailored to the seller’s needs. Buying a house from a family who has been living there for more than a decade is very different from making an offer on a home that has been assigned to a bank employee who has almost no room for negotiation flexibility.
Knowing, for example, that the sellers are looking for someone who wants to buy their house and can pay for it right away can be a valuable tip that can help you make the winning offer on a home.
In that case, they might be willing to accept a lower offer, as they prefer to sell to someone who can offer an immediate payment – which they need for another house they bought, for example.
Still, be sure to stay within a reasonable price range when making an offer of such kind. Real estate negotiations are tough, but knowing what the seller’s goals are can make all the difference.
- Leave your emotions at the door.
Source: link. Buying a house requires strategic moves.
Home sellers can be quite emotional, depending on how attached they are to the property they’re trying to sell. This makes real estate negotiations extra difficult, because you’re no longer exchanging rational needs and suggestions.
This is why you, as the buyer, should try to stay as rational as possible.
Easier said than done, right? But keep in mind that being patient and willing to handle a few (irrational) demands can help you get the keys of your dream home.
Your Realtor can certainly give you valuable tips on how to handle the seller’s demands in this particular case. If you’re directly involved the negotiation, you might want to check out this article with sweet negotiation tips, which are useful for handling all kinds of offers, not just for making successful real estate offers.
- Your first offer should also be your best offer.
Sure, buying a great house at the best price is the primary goal. But setting the bar too low and hoping that you’ll get a counteroffer is not the safest way to get the seller on your side.
One of the biggest fears of buyers who are trying to make an offer on a house is to overpay, while most sellers hope to get a fair sum for their home. But what sellers consider as fair, doesn’t necessarily have to mean that it’s actually adequate.
Again, your Realtor will be able to tell you whether this house is overpriced or whether it’s worth what the seller is asking for.
If the price is right, consider offering what the seller asked for, or even more. Such a compelling offer will tell the seller that you can actually afford it and that they are on the safe side if they choose you.
Should you consider buying a house for the listed price, keep the following in mind:
- Ask an expert whether or not the listed price is fair;
- Making an offer on a house is a big investment, but make sure you can afford everything that comes with it – agent fees, insurances, etc.
If the house really wowed you and your financial scope allows you to go for the listed price – think twice about offering a price that will make your seller change his mind.
Fact is that the results of house hunts heavily depend on your negotiation skills and how carefully you chose your Realtor, so don’t be afraid to ask people who know a thing or two about making an offer on a house which can then become the home of you and your family.