Are Early Offers the Best Decision for New Listings?
Some people believe that you should take your time when making an offer on a new listing. As long as you have done your research and you understand what you can offer, the process can be even easier by following these 4 tips.
Making an offer early
Making an offer early is not a bad thing as long as you do it correctly. You must remember sellers want to sell their home fast but at the right price. If you make an early reasonable offer you are likely to get the home because the sellers may not want to wait for any more offers.
Making the right offer
If you are making an early offer you need to make sure that it is right so the buyers don’t get offended by the offer which can happen more in the early stages of a home’s listing. Make sure you do the research and understand what homes are selling for in the area and what the fair market value of the home is. Understanding these factors will help ensure you make a solid offer and you don’t offend the seller.
Presenting the perfect package
When making an early offer it is important that you present a good package to the seller. The way to do this is not only offering a fair price for the home but also by putting down a 20% down payment and not having contingencies with your offer (items like needing to sell your previous home first, etc). A good package would allow your closing to move faster making you more desirable to sellers who want to sell quickly.
Using the market to help make your decision
It is important that you understand the market you are in when making an offer on a home. If you are in a prime area or a seller’s market you will need to make an offer quick. Homes in these areas can sell as quickly as in a weekend. Translation: if you think too long you will miss out on the home. Also, by putting an early offer on a home you will most likely not get a bargain. In the beginning sellers are less likely to budge on their price, hoping to get as close to their listing price as possible.
Making an early offer can be very beneficial and sometimes needed depending on the market. Make sure when making an early offer your approach is solid and you have done your research.