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2019 Idaho Real Estate Blog

The Right Home Needs the Right Offer Main Idaho Real Estate Insights

The spring home buying season is already under way so making the rigth offer when multiple offers are being written is critical.

2019 will be no exception to what we have seen for the past couple of years in Boise, Idaho, another year with a shortage of homes for sale. We have not had enough inventory for over three years now. We just have not had enough supply of homes to meet demand. For example, Last year there were 90 homes sold at over $1 Million. We also built thousands of homes and still there is only a 1 to 2 month invenory of houses listed on the MLS.

Most inquiries we are seeing are people from Portalnd, Settle and across California. For those who of you searching for homes, the reality of an inventory shortage means that not only are fewer homes available on the market, but they tend to receive offers quickly and in some cases receive multiple offers.

How to Make a Strong Offer on a House that Works

When you do find your ideal home, you have to make an offer that stands apart from the rest. This does not mean that you have to offer thousands more dollars, it  just means that you may only get one shot and you need to be sure it’s a good one because you won't necessarily get a second chance.

You have spent weeks or even months including weekends and your spare time to tour open houses your probably are starting to get tired of looking at homes. Additionally, if you have failed a few times at winning a home you are probably frustrated.

Many home buyers have looked at too many homes and it has become a chore instead of a thrilling adventure. All the houses you have looked at to date probably blend together. Here are some tips to help in your home search.

Know Exactly What You Are Looking For

In current market in Boise for buyers, you do not have the luxury of being able to wait it out on a home to see if anything happens when it comes on the market. You must be on your game to quickly analyze a home and determine if it would work for you and then immediatley tour the home. This means your agent must act available to help you quickly to write an offer.

A turnkey home in an excellent location, priced appropriately will not last long. Your best chance to actually wing your ideal home is to be the first person to get in to view the house as soon as it hits the market. No one wants to make a decision too quickly, we encourage clients to take a bit of time to think it over and if the property is a good match we write up the offer as soon as everyone is in agreement..

How Much Should You Offer?

Most real estate agents do not list a home with some some arbitrary price. It is researched with current market data and compared to other recent nearby similar home sales. The Realtor may also discuss it with a colleague before sharing with the owner/ client. Additionally, sellers and buyers are saavy. There is enough information online and at the water cooler to have a solid foundation of how one home's price compares to others in the neighborhood. While the listed price is a suggestion as to what someone is willing to sell it for, most can quickly analyze if it is priced appropriately. 

No one house is the same as another though. You have to take into account the  current condition, square footage, amenities, lot size, etc. Your agent should be able to adjust for these items adequately and suggest a fair offer amount. They can also negotiate that the seller help pay for some of the closing costs. Understand that if the seller is asked to help pay for closing costs, this means they are ultimately accepting a lower price.

Make Your First Offer Your Best Offer

When a home is priced appropriately, some home buyers believe that if they offer the list price, they are somehow overpaying. This simply is not  true. When you are buying in a competitive market, it’s essential your offer reflects the market value of the home. Remember, you may have already lost a few offers or have at least seen that many homes are receiving multiple offers. A lowball offer will not be taken seriously.

How a Seller Knows You Mean Business

Carefully consider your offer. This includes having your agent ask what the seller is looking for. What do they want to see in the offer so that your offer looks better. Is it a fast close or maybe they need time to pack and move or find their next home? How much earnest money will make the seller feel like you are serious. Money speaks volumes and it symbolizes your skin in the game. It lets the seller and their agent know just how serious you are about buying this house. Amounts vary by area and can depend on the purchase price.

The more you are willing to put down- the better. A good scenario would be if a seller were to receive two identical offers, same price, same closing date but one had $500 for earnest money and the second offer put $2,000 down- which one would you choose? Be clear, you’re not just giving this money away- your funds get held in a trust account during the transaction and may be refundable up to certain points based on contingencies within the contract including the home inspection.

Keep Your Offer Contingency Period Short

Home inspections are important, no one wants to get stuck with a large bill to repair a house that had a problem that was not listed on the property disclosure. Home inspections are almost mandated by agents for clients. We do not want surprises.

Most real estate contracts offer a timeframe on the purchase contract as to when these should be completed. In the Boise area, it’s not unreasonable to have this completed within five business days, consult with your agent.

This is also a time for the buyer to conduct their own due diligence. Confirm school districts, taxes, zoning, and other important details about the property or area. Don't forget to inspect wells or septic systems.

How Soon Do You Plan on Closing?

In a fast-moving real estate market, time is always of the essence. All the new legislation can make it take longer to get loans prepared. We typically allow 45 days to close unless the seller expresses otherwise.

No one likes to be in too big of a hurry as moving is one of the most stressfull life events already. Many new buyers don’t realize is that your first mortgage payment isn’t usually due until the following month so this gives a nice buffer to be able to move at your leisure.

The goal is to make an offer on your ideal house that gets accepted. Too often, buyers miss out on the opportunities just by being unaware of the market sitation and best practices. Open communication with your agent and loan professional is a must.  A good way to look at is is- an educated homebuyer becomes a homeowner!

 
Posted by tlangford at 3/15/2019 4:48:00 AM
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