The Top 5 Things That Could Make or Break Your Offer This Summer
Summer is one of the busiest times of year for the real estate market—and for good reason! The weather is ideal, school’s out, and buyers are eager to settle into a new place before fall. But with so many people actively searching, it’s important to make sure your offer stands out in a competitive crowd.
Whether you’re a first-time buyer or returning to the market, these five factors could make all the difference between landing your dream home or missing out.
1. Your Pre-Approval Letter
Make it: Before you start touring homes, get pre-approved by a reputable lender. A pre-approval letter shows sellers you’re a serious buyer with financing already lined up—and that you’re ready to move quickly.
Break it: Submitting an offer without pre-approval could cause sellers to move on to the next buyer. In a fast-paced summer market, hesitation can cost you.
2. Your Offer Price
Make it: In a competitive market, coming in with a strong offer—especially if the home is newly listed—can put you ahead. Your agent will help you analyze the local market and determine the right price strategy.
Break it: Going in too low might save you money in theory, but in practice, it could knock you out of the running entirely. Sellers are often looking for clean, fair offers with minimal back-and-forth.
3. Contingencies (or Lack Thereof)
Make it: While some contingencies (like inspections) are important for protecting yourself, keeping your offer clean and simple can be a major advantage. Waiving minor contingencies—or offering flexibility on closing timelines—can appeal to sellers.
Break it: Too many contingencies can complicate the process and make your offer feel risky. In a multiple-offer situation, sellers may lean toward buyers with fewer strings attached.
4. Your Earnest Money Deposit
Make it: A larger earnest money deposit (aka “good faith” deposit) shows that you’re committed to the purchase. It gives the seller confidence that you’re not likely to walk away without cause.
Break it: A low deposit might make your offer seem shaky or non-serious, especially if others are putting more on the table.
5. Your Flexibility and Timeline
Make it: Being flexible with your move-in date or closing timeline can be a big plus for sellers, especially if they’re also buying a home or juggling a tight schedule. The fewer logistical headaches for them, the better your offer looks.
Break it: If your timeline is rigid or includes multiple delays, it might be enough to sway the seller toward a more flexible buyer—even if that buyer is offering a similar price.
Ready to Craft a Winning Offer?
The summer market is hot—but with the right strategy (and the right agent), you can compete with confidence. If you’re thinking about buying a condo or home this season, we’re here to help every step of the way—from touring homes to submitting the perfect offer. Contact us at The Bouma Group, Realtors today at 734-761-3060 or info@condohotline.com.
Reach out today to start your summer home search off strong!
Pre-Approval in 2023: What You Need To Know
Pre-Approval in 2023: What You Need To Know
One of the first steps in your condo or home-buying journey is getting pre-approved. To understand why it’s such an important step, you need to understand what pre-approval is and what it does for you. Business Insider explains:
“In a preapproval [sic], the lender tells you which types of loans you may be eligible to take out, how much you may be approved to borrow, and what your rate could be.”
Basically, pre-approval gives you critical information about the buying process that’ll help you understand your options and what you may be able to borrow.
How does it work? As part of the pre-approval process, a lender will look at your finances to determine what they’d be willing to loan you. From there, your lender will give you a pre-approval letter to help you understand how much money you can borrow. That can make it easier when you set out to search for condos or homes because you’ll know your overall numbers. And with higher mortgage rates impacting affordability for many buyers today, a solid understanding of your numbers is even more important.
Pre-Approval Helps Show You’re a Serious Buyer
Another added benefit is pre-approval can help a seller feel more confident in your offer because it shows you’re serious about buying their property. A recent article from Forbes notes:
“From the seller’s perspective, a preapproval [sic] letter from a reputable local lender often can make the difference between accepting and rejecting an offer.”
This goes to show, even though you may not face the intense bidding wars you saw if you tried to buy during the pandemic, pre-approval is still an important part of making a strong offer. In fact, Christy Bieber, Personal Finance Writer at The Motley Fool explains it may be the most important part of making an offer:
“Pre-approval maximizes the chances you’ll be able to actually close the deal – and sellers want to see that.
The fact that a pre-approval gives you a better chance of getting your offer accepted is undoubtedly the most important reason to complete this step . . .”
Bottom Line
Getting pre-approved is an important first step toward buying a condo or home. It lets you know what you can borrow and shows sellers you’re serious about purchasing their condo or home. Connect with a local real estate professional and a trusted lender so you have the tools you need to purchase in today’s market. Contact us at 734-761-3060 or info@condohotline.com to discuss your path to ownership!
Is It Enough To Offer Asking Price in Today’s Housing Market?
If you’re planning to buy a home or condo this season, you’re probably thinking about what you’ll need to do to get your offer accepted. In previous years, it was common for buyers to try and determine how much less than the asking price they could offer to still get the property. The buyer and seller would then negotiate and typically agree on a revised price that was somewhere between the buyer’s bid and the home’s initial asking price.
In today’s real estate market, buyers shouldn’t shop for a home with the same expectations.
Things Are Different Today
Today’s housing market is anything but normal. According to the National Association of Realtors (NAR), the average property that’s sold today:
- Receives 4.8 offers
- Sells in just 17 days
Homes and condos selling quickly and receiving multiple offers show how competitive the market is for buyers right now. This is because there are more buyers on the market than properties for sale. When the number of homes available can’t keep up with demand, they often sell for more than the asking price.
How Does This Impact You When It’s Time To Submit an Offer?
Market conditions should help guide your decisions throughout the process. Today, the asking price is often the floor of the negotiation rather than the ceiling. Knowing this is important when it’s time to submit an offer, but you should also use that information as you’re searching too. After all, you don’t want to fall in love with a condo or home that ultimately sells for a price higher than what you’ve budgeted for.
The Mortgage Reports has advice if you’re looking to purchase a home or condo in a competitive market. The article encourages you to be realistic with your housing search, saying:
“The best thing to do is set your budget and expectations ahead of time so you know how much you can afford to offer — and when to walk away. This will make negotiations a lot easier.”
Of course, when you’ve found your dream home, you’ll want to do everything you can to submit your best offer upfront and win a potential bidding war. Knowing the current market is key to crafting a winning offer. That’s where working with an expert real estate advisor becomes critical.
A real estate professional will draw from their experience and expert-level knowledge of today’s housing market throughout the process. They’ll also balance conditions in your area to make sure your offer stands out above the rest.
Bottom Line
Understanding how to approach the asking price of a condo or home and what’s happening in today’s real estate market are critical for buyers. Let’s connect so we can work together to create a winning plan for you. Contact us today at 734-761-3060 or info@condohotline.com!
4 Tips for Making a Competitive Offer
So, you’ve been searching for that perfect place to call ‘home,’ and you’ve finally found it! The price is right and in such a competitive market you want to make sure you make a good offer so that you can guarantee that your dream of making this condo yours comes true!
Below are 4 steps provided by Freddie Mac to help buyers make offers, along with some additional information for your consideration:
1. Determine Your Price
“You’ve found the perfect condo and you’re ready to buy. Now what? Your real estate agent will be by your side, helping you determine an offer price that is fair.”
Based on your agent’s experience and key considerations (like similar condos recently sold in the same area or the condition of the condo and what you can afford), your agent will help you to determine the offer that you are going to present.
Getting pre-approved will not only show the sellers that you are serious about buying, but it will also allow you to make your offer with confidence because you’ll know that you have already been approved for a mortgage in that amount.
2. Submit an Offer
“Once you’ve determined your price, your agent will draw up an offer, or purchase agreement, to submit to the seller’s real estate agent. This offer will include the purchase price and terms and conditions of the purchase.”
Talk with your agent to find out if there are any ways in which you can make your offer stand out in this competitive market! A licensed real estate agent who is active in the complexes you are considering will be instrumental in helping you put in a solid offer.
3. Negotiate the Offer
“Oftentimes, the seller will counter the offer, typically asking for a higher purchase price or to adjust the closing date. In these cases, the seller’s agent will submit a counteroffer to your agent, detailing their desired changes, at this time, you can either accept the offer or decide if you want to counter.
Each time changes are made through a counteroffer, you or the seller have the option to accept, reject or counter it again. The contract is considered final when both parties sign the written offer.”
If your offer is approved, Freddie Mac urges you to “always get an independent home inspection, so you know the true condition of the unit.” If the inspector uncovers undisclosed problems or issues, you can discuss any repairs that may need to be made with the seller or even cancel the contract altogether.
4. Act Fast
The inventory of condos listed for sale has remained well below the 6-month supply that is needed for a ‘normal’ market. Buyer demand has continued to outpace the supply of homes for sale, causing buyers to compete with each other for their dream homes.
Make sure that as soon as you decide that you want to make an offer, you work with your agent to present it as quickly as possible.
Bottom Line
Whether buying your first home or condo or your fifth, having a local real estate professional who is an expert in his or her market on your side is your best bet in making sure the process goes smoothly. Let’s talk about how we can make your dream of home ownership a reality! We are the Ann Arbor Condo specialists, give us a call today at 734-761-3060 or info@condohotline.com.
How to Buy a Condo in One Year: A Step-by-Step Guide
Let’s start the Spring off right. If you’ve been dreaming of a new condo, it’s time to get started! Here’s a month-by-month guide to planning for and buying a new condo.
Month 1: Brush Up on Your Market Knowledge
The best way to get started? Brush up on your real estate knowledge. Scour the market with a fine-tooth comb. Check out things like current inventory in your city, average sales prices, and the listing-to-sales-price ratio.
This research will help you familiarize yourself with the market. Check out Ann Arbor Condo complexes here!
Month 2: Address Your Budget
Let’s finalize our budget shall we? The easiest way to do this is to get pre-approved for a mortgage.
Meet with a lender (let us know if you’d like a recommendation) to review your finances. The lender will go over your financial history, and then let you know what the bank is willing to lend you.
Now you have an idea of what your mortgage will be and what you can afford in a condo.
Month 3: Find Your Perfect Location
Do some soul searching. Where will you be happiest? Explore locations based on their job market, housing affordability, and overall quality of life. The goal is to narrow down your search to one city.
If you have the means, try to take some time off to go and visit a few areas. Once you find an area, it’s time to narrow your search down even further by pinpointing specific complexes or parts of town that will best meet your needs.
Month 4: Find the Right Agent
Find the right real estate agent to help you buy a condo. Trust us: they’ll save you time, money, and more than a few headaches.
If you need any recommendations, let us know. We have more than a few ideas.
Month 5: Define Your Dream Home
Now is the fun part! Start putting together a list of everything you want in your dream home. We recommend starting by defining your “must-have” features. Think of the things you can’t live without. That’s a great place to start.
It’s also important to know the difference between “must-have” (i.e. you need 3 bedrooms and 2 bathrooms) and “nice-to-haves” (it would be nice to have granite countertops, but you can also live without them.)
Month 6-7: Begin Searching
Use a handy home search tool like ours to begin browsing homes for sale in your target area. Once you find a home that you like, it’s time to schedule a tour.
Private tours are often better than traditional open houses because you have more time to walk through the unit, without the pressure of competing with other potential buyers.
At some point in your home-search journey, you’re likely to come across at least one that calls your name.
Month 8: Fall in Love and Make an Offer
You’ve found the one; now make an offer!
Work closely with your agent to compare recently sold condos in the area and craft the perfect offer.
Ask your agent for their advice—like whether or not they think the price is right for this home, as well as what other contingencies you might want to include in your offer. This is when your real estate agent will prove truly valuable: they’ll be able to provide useful insight in order to help you get the home of your dreams for the best possible price.
Month 9: Schedule All the Things
Let’s get down to business. It’s time to negotiate with the seller, schedule an inspection, have your real estate agent complete any re-negotiations (based on that inspection), and get the condo appraised by a professional.
You’ll also have to take care of some more paperwork to finalize your mortgage loan.
Month 10 – 12: Let’s Start Closing
Next, you’ll start the closing process.
Buckle up, because we’re in it for the long haul! Here’s where you’ll finalize your mortgage approval (this requires a ton of paperwork) and meet with an attorney to set closing dates and sign paperwork prior to closing. This is also the time when you’ll review closing fees and the exact monthly costs for your condo.
At the end of it all comes the close. You’ll pay the remaining closing fees, sign all the paperwork, and collect your keys Congratulations! You just bought a home!!!
Ready to Begin?
We’re ready to help. Give us a call today at 734-761-3060 or info@condohotline.com to get started.
