You’ve been hunting for a home for a while. Maybe you’ve toured a couple of homes, maybe dozens. You might have found the one. When do you make that home offer?
Every situation is different. My wife and I looked at close to one hundred homes before we found our house. I felt terrible for our real estate agent because we were all over the map.
As I like to reference spectrums, this applies to the timing of an offer too. You don’t want to want to rush on an offer but you cannot wait too long.
Let’s analyze both extremes! My wife and I believe we may have missed out on our dream home because we waited too long to make an offer. The home was everything we wanted but slightly outside of our budget. We could’ve made the payment work but this was our first home. We were slightly nervous. The home needed no updating at the time. It checked off all of our boxes and then some. At the time we were in a buyers market so inventory was just sitting. We waited slightly too long and the owners sold the home to a friend. We keep kicking ourselves to this day. At the point of this blog, this is a seller’s market. If you wait a minute too long, the home will be pending.
Now the other extreme is making an offer too fast. There is a lot to consider when purchasing a home. You will be living here for quite a bit. Let’s not forget about all of the financial obligations: utilities, taxes, repairs, maintenance, insurance, the mortgage, furniture, etc. That’s a lot of dough. You have to make sure the investment is worth it. Additionally, values fluctuate. What are your intentions with this home? How long will you be here? Is there a better option? How much will these repairs or updates cost? You won’t hear this from too many mortgage people but sometimes renting makes more sense. Also, your dream house might not even be listed yet but could be soon.
When you see a house, sleep on it. Pray about it if that’s what you do. Take your time. However, you need to be ready to move with a sense of urgency depending on when you’re searching. If you’re not serious, don’t look. If you are serious, make sure you’re making the right decision but in a sellers market, don’t take too long.
I’d like to talk more with you about how we can even use this upcoming transaction to benefit your next transaction. Your new mortgage can be a great way to get the most out of your new home if utilized properly. Let’s have that conversation!
NMLS ID 847850
Senior Mortgage Advisor
Parkside Lending NMLS ID 176162