Buying a home is such a big decision. Every buyer has a unique situation. Each seller has a certain set of requirements and needs. Market conditions vary. No two home negotiations will ever be the same BUT there are definitely things that all buyers can consider in order to strengthen their offer in any situation.
Getting an offer accepted is not the same thing as getting a good deal. Here are 6 tips on writing a strong offer.
1. Use a real estate agent that knows the market you are purchasing in.
An experienced real estate agent has likely been through hundreds, perhaps thousands of transactions. They fully understand the nuances of the whole process, beginning with the offer. An assertive real estate agent is going to work to get to know the sellers' agent as well as try to find out what is important to the seller prior to advising their client on what to offer and how to structure the deal. They are also going to scrutinize value and market conditions.
2. Get pre-approved rather than just pre-qualified.
You will be in a stronger negotiating position if you have been pre-approved for a mortgage rather than just pre-qualified. A pre-qualification means that you have simply spoken to a lender and given them some preliminary information. A pre-approval means that you have submitted a loan application, along with the financial documents required, and the loan officer has sent your file to underwriting. Submit your pre-approval from your lender with the offer.
3. Price is one number. Negotiate the rest.
Seller concessions toward closing costs. A seller can contribute to your closing costs. In a market where homes are sitting longer, many will.
The rate you actually pay. A seller-funded rate buydown lowers your interest rate — sometimes for the first years of the loan, sometimes permanently. It's often worth more to a buyer than the same amount off the price.
Repairs. What the inspection turns up is negotiable. So is who does the work and when.
What stays with the house. Appliances, window treatments, the shed, the hot tub. Put it in writing.
4. Don't waive your inspection.
Every contract will have a series of contingencies that the buyer works through and removes during the sale. In a standard Oregon Real Estate Sales Agreement, the buyer has 10 business days to get through the inspection period and negotiate any repairs with the sellers. You can shorten the window or agree to a repair threshold. Going in blind on a house nobody has examined is how people inherit an expensive problem.
5. Know the value before you write the number.
Make your offer strong the first time around. This does not mean overpaying for a property. Your agent will review comparable sold property data, along with inventory supply and general market conditions, in order to support your offer price. With more inventory and homes sitting longer, sellers can be more eager to say yes.
6. Make the timeline work for both sides.
The closing timeline is a term like any other. If you need more time, or less, say so. Keep in mind that closing is one thing and occupancy is another. Maybe the seller would benefit from having a week or so in the house after closing.
If you have a home to sell first, an offer contingent on that sale is tricky for a seller. In general, you are in a better negotiating position if you do not have to sell something before purchasing.
Let's run some numbers together. Call or text us at 541-728-1143.
