Here’s What Happens When You Make an Offer on the First Home You See

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You may be tempted to jump at the chance to buy a home. Read on to see why it’s important to scope out several properties before making an offer. 

These days, home buyers don’t exactly get a lot of options in the course of their house hunting. The National Association of Realtors reports that as of the end of April, there was only a 2.9-month supply of homes on the market. That’s well below the four- to six-month supply it commonly takes to meet buyer demand in full.

Low inventory can make it challenging to buy a home, so if you’re looking for one today, and the first property you see appears to be suitable for you, you may be inclined to make an offer on it. But doing so could end up being a big mistake.

You may not know what you’re missing

You might look at a given home and think it checks off all the right boxes. But the more homes you look at, the better a sense you might get of what you really need out of a property you buy.

Let’s say you look at a home with a decent-sized kitchen and decide you’ll make an offer. You might, after looking at several homes, realize that based on your family size, you need more cabinet space and room for a larger fridge to adequately feed your family. That may not become so obvious to you until you scope out different spaces and realize that other homes in your target neighborhood offer more kitchen space.

Of course, this is just one example. The point, however, is that buying a home is a big commitment. You’re signing a mortgage loan that you may end up paying off over 30 years. And you’re locking yourself into various expenses that include property taxes and homeowners insurance.

So it’s important to be confident that you’ve chosen the right home. And going with the first property you look at might lead to a situation where your home ends up lacking features you really want.

Don’t be pressured by low inventory

You may feel compelled to make an offer on the first home you see because real estate inventory is so low these days. But if you give into that pressure, you might regret your choice later.

If you happen to get a really good impression from the first home you see, and you think it’s a contender, have your real estate agent get a feel for how quickly you need to act. If there’s already another offer on the home, you might lose out if you don’t make an immediate offer yourself. But if there aren’t other offers at present, you may have time to look around before circling back to the seller.

Either way, buying a home is a decision you shouldn’t rush. So it’s important to look at different options in the area you want to live in.

Also, think about it this way. If you’re inspired to make an offer on the first home you see and there’s already at least one other interested buyer, chances are, you’re going to land in a bidding war, which you may not want. So either way, in that scenario, looking at other homes before making an offer may be your better option.

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