10 Steps to Buying a Home – Step 5 The Offer
When do you know you are ready to make an offer on a home? Pre-approval from lender – Check! Private home tour with agent – Check! You may look at 3 homes or 20+ homes before finding one that speaks to you, matches your needs/wants and is within your budget. Remember that finding the perfect home for you is a process and each buyers’ process is as unique as they are.
We are currently experiencing a strong sellers market. What does that mean for you as a buyer? High demand, low inventory. Typically, less then 3 or 4 months’ worth of inventory makes for a sellers market which means you may be competing for the same property with other buyers. Bottom line is you might have to submit offers on more then one house.
How Do I Make My Offer Stand Out?
There are steps you and your agent can take to make you and your offer stand out to the sellers and their agent.
- See the house more then one time if possible.
- Go to the open house and introduce yourself to the listing agent.
- Ask questions. Show interest.
- Spend time in the house and really consider all the features, finishes, floor plan and location in the city and on the street.
Let your agent know immediately if your interested so she can request the disclosure packet and get specific seller needs/wants and offer details. Listing agents appreciate knowing which buyers are considering submitting an offer.
Only Make Offers on Homes You Have Full Intention of Buying
Keep in mind that a lot of time and effort on you and your agents part goes in to preparing, writing and submitting an offer. If you decide to make offers on homes do so with the intention of buying it and being the winning offer.
After previewing the home, thoughtful consideration, review of disclosures and comparable sales you decide you want to write an offer the fun begins.
Offer Packet includes:
- Your Agents cover letter
- Personal letter from buyer
- Lenders pre-approval letter and confirmation of funds for closing/down payment
- Agency disclosures
- Sign receipt of seller disclosures
Your agent will review the purchase contract with you and fill in the details of your offer. She will complete the necessary agency disclosures and write a cover letter that shows the highlights of your offer. I strongly believe a personal letter from the buyers, in most cases, will help you stand out. I had seller clients cry when I read them a buyer’s personal letter. True story.
How Long Do I Have to Wait for a Response From the Seller?
The offer presentation or submission will usually have a deadline and offers are typically good for 24-48 hours depending on sellers needs. Good news is you won’t have to wait several days to find out if your offer is accepted.
Your agent will stay in contact with the listing agent to determine if your offer is being considered and if they get that magical call that your offer has been accepted or countered you can move on to the next step. Negotiating Towards Ratification.
Reminder of the 10 Steps in Buying a Home:
- Establish A Budget
- Engage Your Marin Modern/San Francisco Modern Realtor
- Obtain Loan Pre-Approval
- Preview Homes
- The Offer
- Negotiate towards ratification
- Inspection Contingency
- Appraisal/Loan Contingency
- Sign/Fund/Close or Record
- Collect the Keys and Enjoy!
Now you are ready for Step 6: Negotiate Towards Ratification