How Do You Make a Strong Offer on a House at a Sellers Market?

When you put together a strong offer, you might be surprised to see how much money you can save on closing costs. The key is objectively determining the home’s value before making offers. Buying a House is an exciting experience but can also be stressful. You’ll want to make sure you’re prepared before you start shopping. Use these tips to help you find your dream home.

1. Be Prepared

Before you even step foot in front of the seller’s home, you should have already researched the property. You want to know what the property looks like inside and out. In a few cases in Homes for Sale in Clyde Hill, WA, we have noticed that many home buyers aren’t prepared and have not done any research, Avoid this!

Do they have any pets? 

What kind of landscaping does the yard have? 

Is there a pool? 

A garage? 

If you don’t know much about the property, get some information before you go to show up. Thus, make sure you have done your research. Know what the asking price is for the property you want to buy. If you don’t know the asking price, ask the seller! You may not get the answer you’re looking for, but at least you’ll know how much they’re willing to sell their home for.

2. Have a conversation

Don’t just show up at the open house with no intention of buying anything. Talk to the seller about the property, get to know them, and find out if they would be interested in selling the place. If you don’t know much about the home, ask questions! 

You may find that you need some repairs done first or to move things around to get the space you want. Don’t just assume that you’ll be able to do whatever you want once you own the property.

3. Know the Seller’s Motivations

The seller’s motivations to make a firm offer may vary depending on their situation. If they have a home they need to sell fast, they might be motivated to accept any offer. However, if they have a home worth less than what they paid for it, they may not be willing to take a low price. In either case, you should know how to read between the lines to get a good idea of whether or not the seller will accept your offer.

Here are some tips which we have collected from the Woodinville, WA, Real Estate market for reading between the lines:

• Look at the Offer Amount

If the seller accepts your offer, look at the amount of money offered. They probably want to move out of the area if it is too high compared to the asking price. If the offer is too low, they may not be able to afford the property. Before making an offer, you should try to find out exactly what the asking price is.

• Look at the Price Range

In case the seller accepts your offer, look at their range of prices. If the range is wide, then they could be looking to move out of the neighbourhood. But if the range is narrow, then they are likely trying to keep the price down.

• Look at the Closing Date

In case the seller accepts the offer, look at the closing date. 

If the date is close, then they might be trying to avoid paying taxes. But If the date is far away, they do not intend to move soon.

4. Offer a fair price

Once you’ve talked to the seller, you should have a pretty good idea of what the property’s worth. Now it’s time to put that knowledge to work. When you go to the open house, look around, and then write down a figure you think the property is worth. Then, walk away and let the seller know what you came up with. If they accept your offer, great! But, if they don’t, you still have some negotiating power. 

You can either lower your number or even counter-offer. This works well as we have seen many instances in houses for sale Seattle, WA. Either way, you’ve got a solid starting point.

5. Have a Good Negotiation Strategy

If the seller doesn’t accept your first offer, try again and negotiate. Try to get a little bit closer to the original asking price. Remember, though, that the seller might already have accepted another buyer’s offer. So, once you’ve negotiated, don’t expect to see any movement right away. 

Don’t be afraid to negotiate! You can do many things to help improve the price of the home. A great way to start is to look at comparable homes in the neighbourhood. Find out what those homes sold for, and then use that information to understand better what you should offer.

6. Follow up

After closing the sale, it’s time to visit the bank. Get a mortgage pre-approval letter before you start shopping for a home. That way, you won’t have to worry about getting approved for a loan before you start looking. And, if you’re going to be moving soon, you’ll need to make sure you have enough money to cover closing costs.

Conclusion

To summarize, when buying a house at a seller’s market, it’s essential to know what motivates the seller and how they might react to different offers. A strong negotiation strategy will help you avoid making mistakes that could cost you money and leave you with a bad feeling about the process.