It’s a dilemma many prospective homebuyers face: Should they make an offer now . . . or should they wait? It can be an agonizing decision. Maybe you’ll find a home that better suits you, maybe you’ll find a comparable home at a better price, or maybe you’ll find a home in a better location. Despite all these concerns, you may be better off if you go ahead and make an offer. So let’s look at some reasons why you shouldn’t hesitate to make an offer for a home.
Current Market Conditions
One of the most compelling reasons to make an offer for a home has to do with the conditions that obtain in most markets today across the country.
Typically, inventory is low, extremely low in some places, so there are many more buyers looking for homes than there are homes available for sale. And that means competition is fierce, with bidding wars fairly common. So if you find a likely home and don’t make an offer early on, you may miss out entirely.
In addition, home prices are still rising. Though the rate of price increases has decelerated somewhat, prices are nevertheless still going up. And, of course, this means that if you hesitate to make an offer for a home, you may wind up paying more, possibly a lot more.
Still, conditions vary from local market to local market. So be sure to contact a agent at 866-593-7012 to find out exactly what you’ll be facing in the market you’re interested in.
An Offer Is NOT a Purchase
You should also keep in mind that an offer on a home is not a purchase. Making a purchase offer and actually buying a home are two different transactions – another reason not to hesitate to make an offer for a home.
With the right contingencies in place, there’s no reason to hesitate.“If the home you’re thinking about buying is likely to sell quickly, and if you have a way to cancel the contract later, you should immediately make a purchase offer. Don’t sleep on it or try to get every single question answered beforehand, or you may very well lose the home. Somebody else could beat you to the draw and steal it out from under your nose while you’re busy weighing the pros and cons.”
You will, however, need a carefully crafted purchase offer with all the proper protective contingencies in place. And that’s where your agent can be a valuable asset. To discover more, just call 866-593-7012.
Benefits of Making an Offer Now
There are several benefits that accrue if you don’t hesitate and go ahead and make an offer now. Chief among these are . . .
If you’re the first to make a reasonable offer on a home, you’ll likely beat out the competition. “The obvious reason to make a purchase offer right after finding a home you love is that you may prevent anybody else from buying it. When the seller accepts an offer from you, the seller can’t accept another unless it’s a backup offer, which is only good if you cancel your contract.”
Further, being the first to make an offer puts you in a much better negotiating position. “If your offer is first and sole, you can negotiate on price and terms. .. . Your negotiation power is minimized if there are multiple offers. Even if other buyers are interested, they will generally slink away once the seller accepts an offer, opening the door for your re-negotiations, if any, after the home inspection.”
Mortgage Rates Are Low, But Will Increase
Mortgage interest rates reached historic lows in 2020, and they are still low in 2021. But this state of affairs isn’t expected to last. It may be a good idea, then, to make an offer for a home and lock in your mortgage at these low rates before they go up substantially. It could mean the difference of several thousands of dollars over the life of your loan.
Here’s how this shapes up for home buyers waffling about making an offer. ..
“Homebuyers in 2021 are faced with a competitive market, but some good reasons to buy. While it can be tough to nail down an accepted offer on a home you love, interest rates are at historic lows and rising home prices mean it could be a good time to lock in a home purchase.”
But here’s the thing: “Extremely low rates aren’t likely to be available much longer – and when they rise, it can increase your total cost of buying a home. While rates are still low right now, experts expect to see them increase in 2021 . . . If you’re planning to buy a home soon, now is probably the best time to get the lowest rate possible on your mortgage” by not hesitating to make an offer.
But Don’t Go It Alone . . .
Although the evidence and arguments are pretty compelling for why you shouldn’t hesitate to make an offer for a home, there are some risks involved. Acting in haste, especially when comes to huge purchases like a home, can go disastrously wrong. But an experienced can guide you through the process and help you avoid the common mistakes and pitfalls. So if you’re ready to make an offer for a home, contact us today at 866-593-7012.