Making an Offer: Preparation, Negotiation, and Follow-Through

Posted: September 28th, 2021

There’s More to Making an Offer Than Meets the Eye

Envision this: You and your family have been keeping an eye on available listings in Brevard County, and you’ve just stumbled across one that checks all the boxes on your Dream Home list. You’re ready to take action and make an offer, but you hesitate. Should you offer full price or try to negotiate? Will you be able to secure a home loan? How much cash should you bring to the table? 

In a simple world, you’d meet the buyer’s asking price and call it a done deal -- but as you know, our world is anything but simple! A real estate transaction is a complicated process, but it’s for a good reason: there are a number of checks in place to make sure that all parties will be treated fairly from start to finish. Making the right offer can help to move things in your favor. Read on to learn a few of our tips for you to consider as you prepare to make an offer on a home. 

Before You Begin

Even though the current market is a sellers’ market and you need to move quickly to secure your intended property, it’s critical that you take the time to do your research on the market and on your financing options. Working with a Realtor can give you access to resources like market data, comparable home values, and more. 

You’ll also want to start looking for a lender you can trust to give you pre-approval for a mortgage. Essentially, a lender’s pre-approval considers your credit score, income, assets, and a number of other factors to determine the type and scope of loans you could qualify for. Securing pre-approval is not an absolute necessity, but it does give the buyer confidence in your ability to secure financing and move forward with the transaction.

Determine Your Bargaining Strength

Certain types of offers appeal to buyers more than others. There are a few different ways you can structure your offer: 

• Offer all cash. This is often the most attractive option for the seller as it indicates the buyer is serious about their offer and will be able to move through the transaction quickly. Obviously, however, this isn’t always a feasible option for buyers, especially with home prices soaring in markets across the country.

• Obtain a home loan. A majority of buyers finance their home purchase with a home loan. If you take this route, it’s a great idea to develop a relationship with your lender ahead of time so you’re not scrambling to get your loan approval while your closing date looms. 

• Include contingencies as necessary. Contingencies to a real estate contract can help ensure both parties are getting the best value through the transaction. Your real estate agent may suggest including a price reduction to cover necessary repairs, or a condition that you complete your home sale before closing on a new one. Contingencies can put more of a burden on the seller, especially when it comes to repairs and concessions, but when used wisely, they can make an agreeable situation for everyone involved.

Work With a Realtor Who Knows the Market

The current real estate market demands expert navigation, especially on the buyer’s side. With historically low inventory and favorable mortgage rates, many sellers are seeing multiple offers on their homes within minutes of listing and even the occasional bidding war between eager buyers. This is not a time to wing it if you’re looking to make one of the most important purchases of your lifetime. 

When you partner with a real estate professional who has strong connections to their locale, you gain access to resources that can help you devise the best possible offer strategy. Your Realtor can help determine the seller’s motivations and create an offer that appeals to them while getting you the best value for your dollar. 

At Ellingson Properties, our team is dedicated to offering you the real estate solutions you need all under one roof. If you’re ready to begin your home search, call us at 321-750-7050 today.