If you find your dream home in these days of tight inventory, then you should pull out all the stops to walk away the winner. In competitive housing markets across the country, putting together the winning offer can be difficult. Don’t make the process even tougher by succumbing to one of these common mistakes.
Matching your lender letter to your offer
As a smart buyer you know how important it is to get preapproved to show a seller you are financially able to purchase a home. However, you shouldn’t use that document to come up with an offer amount.
If your preapproval letter is for the exact offer price, it could make a listing agent nervous because it appears that you do not have any wiggle room to negotiate, and might no longer qualify if interest rates rise.
Submitting a lowball offer
Lowballing a seller can backfire, particularly in a seller’s market. A lowball offer that isn't backed up with math or comparable sales data may be seen as disrespectful and could turn off the seller. Remember – just because you can doesn’t mean that you should.
Being slow to put in that offer means you could wind up paying more in a bidding war situation or missing out on the property altogether. Remember – if you think it is a good home then someone else will too. As a buyer you need to be ready with your paperwork, such as a preapproval letter, and documents supporting proof of funds, from the first day that you begin house-hunting mode. That way you can move quickly quickly with an offer when you find that dream house. You want to go as far as possible with your loan application process, submitting all the documents your lender asks for, so that you can close as quickly as the seller’s schedule dictates.
Waiving inspection contingencies
Please do not waive your inspection contingency. If you are in a competitive bid situation you can ask the listing agent to let you do a pre-offer inspection. That way you can make sure that your interests are protected and you know whether there are any issues about the house that may cause problems later. Remember, if you waive the inspection contingency in your offer and then discover a significant issue later and want to back out of the deal, you will likely lose your earnest money deposit.
Not presenting yourself well
In a seller’s market, buyers need to take steps to make sure they look to the seller and the listing agent. In a multiple bid situation, the listing agent is trying to figure out which buyer will be the easiest to work with. Even if the contract is the highest offer but filled with requests such as an extended home inspection or a home sale contingency, the listing agent may recommend that the seller take another offer.
Make sure the seller knows you love the house
The seller is more likely to select the buyer who lets him or her know that the house is going to be loved by the future owner! Buyers who act less than enthusiastic will see themselves at a competitive disadvantage when the sellers are comparing multiple offers because the seller and listing agent want to know that the buyer is really committed tot he purchase. I recently had a listing with competitive bids. The seller picked the buyer who left a note on their white board in the kitchen saying how much they loved the house - and then the buyer posted on her Facebook page about the fantastic house they had just seen! Time to get out that paper and pen to write a ltter to the seller about how you are looking forward to living in your dream home if the seller will just pick your offer!
CALL THE LISE HOWE GROUP!
If you need help putting together a strong offer to beat out the competition for your dream home, please give the Lise Howe Group a call at 240-401-5577 or email us at email@example.com. We hate losing as much as you do! Together we will get you that perfect home!