Purchase Agreement | Competitive Market - Elise Wishlow Real Estate

4 Tips To Make Your Strongest Offer on a Home

Are you thinking about buying a home soon? If so, you should know today’s market is competitive in many areas because the number of homes for sale is still low — and that’s leading to multiple-offer scenarios. And as we move into the peak homebuying season this spring, this is only expected to ramp up more.

Remember these four tips to make your best offer.

1 // Partner with a Real Estate Agent

Rely on a real estate agent who can support your goals. As PODS notes:

“Making an offer on a home without an agent is certainly possible, but having a pro by your side gives you a massive advantage in figuring out what to offer on a house.”

Agents are local market experts. We know what’s worked for other buyers in your area and what sellers may be looking for — not just because we do comparative analyses, but also because a good buyer’s agent will call the seller’s agent in advance of making an offer to find out what matters to the seller. That information can be game-changing when you’re deciding what offer to bring to the table.

2 // Understand Your Budget

Knowing your numbers is even more important right now. The best way to understand your budget is to work with a lender so you can get pre-approved for a home loan. Doing so helps you be more financially confident and shows sellers you’re serious. That gives you a competitive edge. As Investopedia says:

“. . . sellers have an advantage because of intense buyer demand and a limited number of homes for sale; they may be less likely to consider offers without pre-approval letters.”

Don't yet have a lender? That's okay. I have several loan officers waiting in the wings, excited to meet with you and help you in this process.

3 // Make a Strong, But Fair, Offer

It’s only natural to want the best deal you can get on a home, especially when affordability is tight. However, submitting an offer that’s too low does have some risks. You don’t want to make an offer that’ll be tossed out as soon as it’s received just to see if it sticks. As Realtor.com explains:

“. . . an offer price that’s significantly lower than the listing price, is often rejected by sellers who feel insulted . . . Most listing agents try to get their sellers to at least enter negotiations with buyers, to counteroffer with a number a little closer to the list price. However, if a seller is offended by a buyer or isn’t taking the buyer seriously, there’s not much you, or the real estate agent, can do.”

There’s also something to be said for a well-written offer that leaves nothing to chance and is crystal clear to all parties. As we say at Amherst Madison, “Come in clean and strong.”

The clean part refers to the quality of the contract. The expertise your agent brings to this part of the process will help you stay competitive, find a price that’s fair to you and the seller, and write a solid, clear contract that stands out among the others.

4 // Trust Your Agent During Negotiations

After you submit your offer, the seller may decide to counter it. When negotiating, it's smart to understand what matters to the seller. As I mention above, I do this by calling the seller's agent. Once we understand the seller's pain points, being as flexible as you can on things like moving dates or the condition of the house can make your offer more attractive.

Your real estate agent is your partner in navigating these details. Trust them to lead you through negotiations and help you figure out the best plan. As an article from the National Association of Realtors (NAR) explains:

“There are many factors up for discussion in any real estate transaction—from price to repairs to possession date. A real estate professional who’s representing you will look at the transaction from your perspective, helping you negotiate a purchase agreement that meets your needs . . .”