5 Things Buyers Should Know When Making an Offer on a Home
When it comes to buying a house in Ohio it is no secret that you are looking for the perfect place to call home to fit your lifestyle and needs. Problem is that today’s seller’s market leaves very little inventory to choose from, even around Central Ohio. Right now the housing inventory is hovering near record lows and the buyer demand is not decreasing. This has made multiple offer scenarios much more normal on every home that hits the market all across the nation.
Here are five things that buyers in Central Ohio should keep in mind when they are ready to make an offer on a home.
Know the numbers
Having a complete and thorough understanding of your budget and exactly how much you can afford on a home is crucial. It is very easy to fall in love with a home and wants to outbid another buyer to win the home and make it yours, but it can be very easy to go over an affordable budget by doing so. The best way to make sure you stay within your affordable budget is to get preapproval on a home loan before you begin your home search. Taking this step will allow you to see how much you are eligible to borrow and it will help to communicate the seriousness of your offer to the homeowner when you do find a home you would like to purchase. Including your preapproval letter shows that you are much more likely to be approved for your home loan and that you are ready to take the next step when you make your offer. It just may give you a little bit of an edge above the competition as well.
Be prepared for a much faster pace
Today’s home sales are much more fast-paced than they were just a year ago. According to the Realtors®, confidence index put out by the National Association of Realtors® the average home stays on the market for just 17 days. Having the help of a skilled real estate agent will help greatly and you should also be prepared to move as quickly as your agent advises. This means being available to sign paperwork and have communication open to answer right away so that you have an edge against the competition and are able to get your offer in as quickly as possible to beat out other offers.
Lean on the expertise of a local real estate professional
In any market, it is always smart and wise to hire an expert local real estate agent to help you through the home buying process. Now more than ever it is increasingly important to hire a buyer’s agent to help you with homebuying success especially here in Ohio. Real estate agents make it their life’s work and are daily in the business of what is going on in the real estate market from home prices, to how quickly homes are selling, to what buyers and sellers are currently looking for, to where properties for sale of a certain type are located, to even if properties may be coming on the market soon. They are also master negotiators when it comes to purchasing homes and can help negotiate with the homeowner to get you into a home you love.
Making a strong but fair offer
When each home is receiving more than one offer your offer will need to be the best that it possibly can be. In the past offering near the asking price was enough to make the offer appealing to sellers, but right now in today’s market homes are selling often above their list price. When there are so many offers on each home and such a competitive market amongst buyers it is best to use an agent to help you put together the strongest and most appealing offer to help you secure a home.
Be flexible in negotiations
Most home sales have a few negotiations between buyer and seller before they land on a mutual agreement and both parties sign an offer. During a strong seller’s market, it is good for buyers to be prepared with the fact that they will need to keep in mind the seller's needs in the transaction as they can easily move onto the next buyer interested in their property. Be willing to be flexible on things such as move-in dates and minimal contingencies.
When you are ready to make an offer make sure to keep in mind what you need in a home as well as what the seller may need to comfortably transition out of their home. The more appealing your offer is to the seller and the more readily available you are to move quickly the more chances you have at successfully purchasing a home in today’s market.
For more information on central Ohio real estate please contact us at any time.