Now that you’ve found the house of your dreams, all of the hard work is done, right? Not exactly. Before you submit an offer, you should carefully consider a few factors to be competitive in this market. The Austin market is hot right now so more care needs to be taken when making this decision. Let’s discuss some of the most important factors when it comes to determining your offer. To be straightforward, the most important factor you will have to consider is the price. Figuring out what to offer can be difficult for home-buyers. Luckily, our team of specialists have a lot of success in helping buyers present the best offer. To start, you can ask these 4 questions below: 1. What have similar homes in the area sold for? The best way to start is to compare the home you want to homes in the area. Comparables are a group of recent, similar, and nearby home sales that you can use to help price the home you want. When comparing you’ll want to make sure they have very similar criteria like the ones below: Location of Construction Bedroom and Bathroom Count Square Footage Condition Comparing these together with the house you’re looking at will help give you a good idea of a general offer. Your buying specialist will be able to help you pull this information and compare it with you. Their experience will also help with narrowing the number down further. 2. How long has this particular home been on the market? The amount of time a home has been sitting on the market may be something to take notice of when coming up with your offer. Right now, houses have been moving quickly so it’s less likely you’ll be able to work with the price. The longer a house has been on the market, the more potential you have for lowering your offer. It’s best to have a discussion with your buying specialist on what route to take. 3. What’s the condition of the home? This is a little more obvious, but the condition that the property is in will have an effect on what you should offer. Homes that are more turn-key or move-in ready won’t provide much potential here. However, fixers and rehab properties may be nice opportunities to bring the value down through negotiation. Your buyer's specialist will be looking for things like this when determining your offer. Some things you can be on the lookout for structurally include: A Droopy or Broken Roof Cracks within the Foundation Rusty Plumbing Water Stains on Walls Warped or Uneven Floors Damage from Pest Infestations A lot of issues can be hard to identify on your own, which is why you should reach out to your buying specialist. They will make sure to request disclosures from the selling agent to check for any reports or inspections that could indicate problems that aren’t visible in a walkthrough. Be wary though, these disclosures usually just document issues known to the seller. Our specialists will do more investigation to ensure any potential issues are found. 4. How flexible are you on price? In this market, if you aren’t prepared to pay over asking it will be very difficult to be competitive. Most houses are going for over asking price within a few days, so you must budget extra and expect to pay more. However, you may be able to make your offer more favorable in a few other ways such as: Contingencies Closing Schedule Rent Backs Closing Prices Some sellers may accept a lower-priced offer if something from one of these categories interests them. For example, a seller might prefer to close on the house sooner rather than accept a larger offer closing later. Talk with your buying specialist to find how to make your offer as enticing as possible. Final Thoughts All in all, the goal is for your offer to be accepted, and to close on the house of your dreams. It can be tough to draft the perfect offer, however, with the right team behind you it can be done with a lot more success. Our team has several seasoned buyer specialists that can help guide you in this process with ease. If you have any questions about buying in Austin you can contact us below.
Friday, July 9, 2021
How Much to Offer for a House in Austin, TX
Now that you’ve found the house of your dreams, all of the hard work is done, right? Not exactly. Before you submit an offer, you should carefully consider a few factors to be competitive in this market. The Austin market is hot right now so more care needs to be taken when making this decision. Let’s discuss some of the most important factors when it comes to determining your offer. To be straightforward, the most important factor you will have to consider is the price. Figuring out what to offer can be difficult for home-buyers. Luckily, our team of specialists have a lot of success in helping buyers present the best offer. To start, you can ask these 4 questions below: 1. What have similar homes in the area sold for? The best way to start is to compare the home you want to homes in the area. Comparables are a group of recent, similar, and nearby home sales that you can use to help price the home you want. When comparing you’ll want to make sure they have very similar criteria like the ones below: Location of Construction Bedroom and Bathroom Count Square Footage Condition Comparing these together with the house you’re looking at will help give you a good idea of a general offer. Your buying specialist will be able to help you pull this information and compare it with you. Their experience will also help with narrowing the number down further. 2. How long has this particular home been on the market? The amount of time a home has been sitting on the market may be something to take notice of when coming up with your offer. Right now, houses have been moving quickly so it’s less likely you’ll be able to work with the price. The longer a house has been on the market, the more potential you have for lowering your offer. It’s best to have a discussion with your buying specialist on what route to take. 3. What’s the condition of the home? This is a little more obvious, but the condition that the property is in will have an effect on what you should offer. Homes that are more turn-key or move-in ready won’t provide much potential here. However, fixers and rehab properties may be nice opportunities to bring the value down through negotiation. Your buyer's specialist will be looking for things like this when determining your offer. Some things you can be on the lookout for structurally include: A Droopy or Broken Roof Cracks within the Foundation Rusty Plumbing Water Stains on Walls Warped or Uneven Floors Damage from Pest Infestations A lot of issues can be hard to identify on your own, which is why you should reach out to your buying specialist. They will make sure to request disclosures from the selling agent to check for any reports or inspections that could indicate problems that aren’t visible in a walkthrough. Be wary though, these disclosures usually just document issues known to the seller. Our specialists will do more investigation to ensure any potential issues are found. 4. How flexible are you on price? In this market, if you aren’t prepared to pay over asking it will be very difficult to be competitive. Most houses are going for over asking price within a few days, so you must budget extra and expect to pay more. However, you may be able to make your offer more favorable in a few other ways such as: Contingencies Closing Schedule Rent Backs Closing Prices Some sellers may accept a lower-priced offer if something from one of these categories interests them. For example, a seller might prefer to close on the house sooner rather than accept a larger offer closing later. Talk with your buying specialist to find how to make your offer as enticing as possible. Final Thoughts All in all, the goal is for your offer to be accepted, and to close on the house of your dreams. It can be tough to draft the perfect offer, however, with the right team behind you it can be done with a lot more success. Our team has several seasoned buyer specialists that can help guide you in this process with ease. If you have any questions about buying in Austin you can contact us below.
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