So, you’ve been searching for that perfect house to call ‘home,’
and you’ve finally found it! The price is right, and in such a
competitive market, you want to make sure you make a good offer so that
you can guarantee that your dream of making this house yours comes true!
Below are 4 steps provided by Freddie Mac to help buyers make offers, along with some additional information for your consideration:
1. Determine Your Price
“You’ve found the
perfect home and you’re ready to buy. Now what? Your real estate agent
will be by your side, helping you determine an offer price that is
Based on your agent’s experience and key considerations (like similar
homes recently sold in the same neighborhood or the condition of the
house and what you can afford), your agent will help you to determine
the offer that you are going to present.
will not only show home-sellers that you are serious about buying, but
it will also allow you to make your offer with confidence because you’ll
know that you have already been approved for a mortgage in that amount.
2. Submit an Offer
determined your price, your agent will draw up an offer, or purchase
agreement, to submit to the seller’s real estate agent. This offer will
include the purchase price and terms and conditions of the purchase.”
Talk with your agent to find out if there are any ways in which you
can make your offer stand out in this competitive market! A licensed
real estate agent who is active in the neighborhoods you are considering
will be instrumental in helping you put in a solid offer.
3. Negotiate the Offer
seller will counter the offer, typically asking for a higher purchase
price or to adjust the closing date. In these cases, the seller’s agent
will submit a counteroffer to your agent, detailing their desired
changes, at this time, you can either accept the offer or decide if you
want to counter.
Each time changes are made through a counteroffer, you or the
seller have the option to accept, reject or counter it again. The
contract is considered final when both parties sign the written offer.”
If your offer is approved, Freddie Mac urges you to “always get an independent home inspection, so you know the true condition of the home.”
If the inspector uncovers undisclosed problems or issues, you can
discuss any repairs that may need to be made with the seller or even
cancel the contract altogether.
4. Act Fast
The inventory of homes listed for sale has remained well below the 6-month supply that is needed for a ‘normal’
market. Buyer demand has continued to outpace the supply of homes for
sale, causing buyers to compete with each other for their dream homes.
Make sure that as soon as you decide that you want to make an offer,
you work with your agent to present it as quickly as possible.
Whether buying your first home or your fifth, having a local real
estate professional who is an expert in his or her market on your side
is your best bet in making sure the process goes smoothly. Let’s talk
about how we can make your dream of homeownership a reality!
For the past few years, historically low inventory has been driving
up competition (and prices) for real estate in markets across the
country. But it looks like 2019 is going to see that (finally!) start to
shift. While gains are expected to be modest, housing inventory is at
least going to be heading in the right direction in the upcoming year.
According to Realtor.com’s 2019 Housing Forecast,
national inventory increases are projected to hover right under 7% for
2019 (which is in stark contrast to last winter when inventory hit the
lowest level in recorded history). Some types of properties will see
more growth than others—while entry-level buyers will see only modest
changes in inventory, higher-priced properties (and higher-priced
markets) should see a more notable change in available inventory in the
If you’ve been thinking about buying a home but haven’t been able to find a property in this competitive market, it looks like things are finally starting to shift in your favor—and (hopefully!) finding a home in 2019 is about to get a lot easier.
Call me and let’s get moving! Your dream…my mission! 847.630.1032
In a strong seller’s market, like the one we have experienced over the past few years, bidding wars are common and expected. This makes sense!
A seller’s market is defined as a market in which the inventory of
homes for sale cannot satisfy the number of buyers who want to purchase a
According to the Cambridge English Dictionary, bidding
wars occur when two or more parties repeatedly outbid each other as
they compete to purchase something- in this case, a home.
In some areas of the country, first-time buyers have been met with
fierce competition throughout their experience. Some have been out-bid
multiple times before finally winning a bid on a home to call their own.
According to the latest Existing Home Sales Report from the National Association of Realtors (NAR), there is currently a 3.7-month supply of homes for sale.
With the current number of houses listed for sale and the level of
demand from buyers, this means it would take 3.7 months for all the
homes listed to sell if no additional listings came to market. Any
supply number under a 6-month supply is considered a seller’s market.
According to NAR, the housing market hasn’t had a 6-month supply of
homes for sale since August 2012.
Good News for Buyers
A recent report
shows that the percentage of houses sold including a bidding war before
settling on a final price decreased from 53% in January of 2018 to 13%
One reason for the decline is an influx of homes being listed for
sale. Even though the month’s supply number is not increasing, the
number of homes for sale is. The chart below shows the year-over-year change in inventory over the last 12 months.
As you can see, the number of homes for sale has started to build
over the last eight months. Prior to this reversal, inventory levels had
fallen for 36 consecutive months when compared to the year before.
Danielle Hale, realtor.com’s Chief Economist, gave some insight into why bidding wars are less common on a local level this year,
“[Last year] you
might have been the only listing in your neighborhood, and you could put
your home up at a certain list price and you would likely see multiple
offers at or above that list price. That tide is turning this year.
It’s going to depend on what neighborhood you’re in, but we
expect it to be more common this year that you won’t be the only
Inventory in the luxury and premium markets (the top 25% of listings
in an area by price), is increasing at a greater rate than the starter
home market. As the choices buyers have continued to increase, the
likelihood of a bidding war will decrease.
If you are debating listing your house for sale this year, you may not want to wait for additional competition as inventory continues to rise.
Call me and let’s get moving! Your dream…my mission! 847.630.1032