Buying a home is not as simple as it looks on HGTV. Navigating the sales process can be challenging for both buyers and sellers, often involving many steps and quick decisions. We all know the market is challenging for first-time home buyers right now. That being said, we are seeing a bit of a lull in multiple offer scenarios. This is an ever changing and dynamic market and navigating it can be tricky. Working with the right Realtor can help!
1) What must happen before you can make an offer?
If you’re renting a house, there are a few things to take care of before you consider making an offer on a property. The first thing to do is giving your landlord notice that you will be seeking to exit your lease. This is because most leases are usually for one year and will renew automatically. Second, getting pre-approved! This is so important! If you’re not sure where to start, there are so many resources online. We recommend chatting with a mortgage broker. Unlike a bank, a mortgage broker will have access to a variety of different lenders and will be able to offer you a few different options. The mortgage broker will require an array of different financial documents, this will help you to determine a budget and your pre-approval.
Once that is done and you have your pre-approval, meeting with a Realtor will be your next step. Not all Realtors are the same and it is really important to find one who you like and trust. After all, you will be working closely with them to find your home.
2) How is an offer drawn up?
When you’re ready to make an offer on a property, let your Realtor know. They will then contact the listing agent. Again, this is a very dynamic market right now. It is not uncommon for properties to hold an offer date. In the offer, you will include your purchase price, date of closing, and whether it’s conditional on anything.
3) How long does the offer process take?
Depending on whether yours is the only offer or there are multiple buyers interested, the offer process can take as little as a day or last up to a week. Currently, many properties hold offers on a current day. There are deadlines. If that is the case, you will likely know the day of whether your offer has been accepted or not.
4) What happens when there are multiple offers?
If you’re competing with other buyers, your Realtor might suggest being flexible with some of the conditions and depending on how badly you want this property, going in with your best offer. It’s often a one-shot deal when there are multiple offers, typically there are no negotiations. Again, this can vary. If you’re a first-time home buyer, consider writing a letter to the seller and include a photo of yourselves. Some people like to know who they’re selling to, it’s often not just a financial decision but an emotional decision too.
5) Are offers in person or digitally?
Depending on when you last sold your home, you might remember meeting in person with your agent to sign all legal documents. However, times have changed and most offers are digital. It’s much more efficient. All offers are emailed and it’s very rare offers are presented in person to the listing agent.
If the seller wants to counter an offer, negotiations are also done digitally until both parties agree to the terms or someone decides to walk away.
6) Should sellers accept the first offer that comes in?
Sellers shouldn’t feel pressured to respond quickly, If a property is listed and an offer comes in that is valid for 24 to 48 hours, but there is a lot of interest from clients or brokers, it’s typical to advise the client to let the offer expire and wait to review everyone else’s that come in. At the end of the day, if someone is really interested in your property, they will wait.
If you’re looking to enter the market and are not sure where to start, contact us today! We are always happy to provide any advice and insight.