Ignite FB Tracking PixelIs Your Initial Offer to Purchase Competitive? - Nate Biggs

Is Your Initial Offer to Purchase Competitive?

by Nate Biggs 08/11/2019

As a homebuyer, it is important to do everything you can to find your dream residence. Once you discover your ideal house, you should be ready to submit a competitive offer to purchase this home.

Ultimately, there are several factors to consider as you try to put together a competitive offer to purchase your dream house. These factors include:

1. A Home's Age and Condition

Examine a house closely before you craft an offer to purchase – you will be glad you did. Because if you leave no stone unturned in your quest to learn about a residence, you can create an offer to purchase that accounts for a house's age and condition.

If you have questions about a house, you should reach out to a seller's agent. That way, you can address these questions before you submit an offer to purchase.

Also, it is important to remember that there is no such thing as a "bad" question to ask about a house. A home purchase may be one of the biggest transactions you will complete in your lifetime. And if you devote time and energy to learn about all aspects of a house, you can ensure you are ready to purchase this home. Perhaps best of all, you can identify potential home problems that otherwise may prove to be costly and time-intensive down the line.

2. The Current State of the Housing Market

Differentiating between a buyer's market and seller's market is key, particularly for those who are ready to submit an offer to purchase a house. If you assess the local housing sector, you can find out whether a buyer's or seller's market is in place and submit an appropriate offer to purchase your dream residence.

In a buyer's market, homes may remain available for many weeks or months after they are listed. Thus, a seller may be willing to accept an offer to purchase, even if it falls below his or her initial home asking price.

Comparatively, in a seller's market, there is a shortage of quality houses available. And in this market, the best houses sell quickly, which means you likely will need to submit a competitive offer to purchase to secure your ideal home.

To determine if a buyer's or seller's market is in effect, take a look at how quickly houses are selling in your city or town. You also should find out if homes are selling at or above their initial asking prices. With this information in hand, you will be better equipped than ever before to submit a competitive offer to purchase your dream house.

3. Your Homebuying Budget

There is no need to overspend to buy your ideal house. Therefore, you should try to submit an offer to purchase that accounts for your homebuying budget.

Oftentimes, it helps to meet with banks and credit unions before you embark on a home search. This will allow you to get pre-approved for a mortgage and enter the homebuying journey with a budget at your disposal.

As you navigate the homebuying journey, you may want to hire a real estate agent, too. Because if you have a real estate agent at your side, you should have no trouble crafting a competitive offer to acquire your dream residence.

About the Author
Author

Nate Biggs

From finding dream homes to Fix & Flips to cash-flowing investment properties, Nate loves helping clients make their goals a reality. With a degree in Architecture and a Master’s Degree in Real Estate and Construction Management, Nate has over 15 years of experience in real estate acquisitions and property management. Nate worked for large publicly-traded apartment REITs as well as small joint-venture partnerships to buy, sell, finance and manage apartment and mixed-use properties all over the country. Before becoming a licensed Realtor, Nate negotiated and closed billions of dollars of real estate transactions and gained extensive, well-rounded knowledge of real estate fundamentals, finance and income properties.

A Colorado native, Nate has always been most interested in the Denver real estate market and helping friends and family achieve their real estate goals, whether it is a dream home or an investment property. Nate has helped clients turn retirement funds, savings, 1031 exchanges and other funds into cash-flowing investments bringing far better returns than their previous investments. With a young, growing family of his own, Nate understands the challenges that families face in this busy real estate market. Nate is driven by the desire to provide service that exceeds all expectations and creates a worry-free, positive and fun buying and selling experience.