If you’re shopping for a home, you may find that you’re not the only one. In fact, the home you may think is the perfect fit, may be the same opinion of two other buyers!
So how can you make sure your offer will be the one the seller can’t refuse? By having the edge over the competition and seperating yourself from the rest of the pact. Consider you may only get one shot at getting it right, so put your best foot forward before someone else does!
Eliminate your chances of losing your bid for your perfect home, by avoiding these costly mistakes that could potentially leave a sour mark with a seller.
FAILURE TO GET PRE-APPROVED FOR A MORTGAGE
When buying a home, don’t start by searching and compiling a list of homes! Step 1 should be determining how much house you can afford and get pre-approved for a mortgage. Sellers give preference to buyers who are pre-approved. Pre-approval tells them that when it’s time to close, you will have the money.
OFFERING YOUR ENTIRE PRE-APPROVED AMOUNT
Just because a bank is willing to loan you $250,000 doesn’t mean you should offer $250,000 for the house! In fact, doing so may damage your credibility. More importantly this could eliminate your “wiggle room” in future negotiations!
SUBMITTING A LOW-BALL OFFER
Submitting a lowball offer that isn’t supported by sales data could easily backfire, especially in a sellers’ market.
Buying a house isn’t like haggling at a flea market. So don’t offer $200,000 for a house worth $250,000, and expect a counteroffer. All too often, the seller will be insulted by your “opening bid,” and won’t bother to return your calls after that.
INCLUDING TO MANY CONTIGENCIES
Most offers include a few standard “contingencies” – things that need to happen before the deal can close. For example, it’s wise to make an offer contingent on a home inspection and your ability to get financing within a specified time.
As a rule, however, contingencies are obstacles to successful closings. So keep them to a minimum. In red-hot markets, forgo contingencies for non-essential repairs and credits. It doesn’t hurt to ask, but be prepared to waive those contingencies to seal the deal.