3 tips for timing your offer on a new home
Timing is everything right? Well, sometimes it is. In real estate transactions, there are some things we can't control. Things like mortgage interest rates, the strength of buyer demand, inventory of homes for sale and the economy.
But you do have some control over the timing when purchasing a home. Here are three helpful tips for how to use timing to your advantage when making an offer to purchase a home:
1. Find out the seller's moving plans and goals.
Do they want a quick closing? Do they need a little extra time after the closing to give possession? Your ability to work with their timeline may help you get the property.
2. The amount of time the property has been on the market at the current price should influence your offer.
Find out from your agent how long the home has been listed at the current asking price. How long is too long? It depends on the current market. Ask your agent.
If the property is due for a price reduction, let your offer reflect that price reduction. On the contrary, if it is new to the market or just reduced, you may need to act quickly and expect to compete with other offers.
3. Put a reasonable time limit on all offers and counteroffers.
This helps folks make a decision and cuts down on all the second guessing, shopping around for multiple opinions, etc. I like to give the other party about 24 hours from the time they receive the offer to respond - depending on their circumstances. A time limit that's too short will just annoy the sellers.
Putting an offer on a new home can be an exciting, but stressful time. Hopefully these tips will help you secure your ideal home.