6 Mistakes to Avoid When Making a Offer on Your Dream Home

Reblogger Joan Cox
Real Estate Broker/Owner with House to Home, Inc. - Denver Real Estate - 720-231-6373 DRE# ER40011786

 

Knowing the right things to do when making an offer on your Dream Home is a must, and Lise nailed this one!   In our very strong Seller's market in Denver, we saw many offers waiving the inspection, and that can really be a big mistake.   Many sellers were signing the listing agreement, and had a sign put in the yard.   They didn't even have to CLEAN and the they would see multiple offers.

 

GREAT Job Lise!  

Original content by Lise Howe DC AB15253

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.

Delaying

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 lise@lisehowe.com.  We hate losing as much as you do! Together we will get you that perfect home! 

 

If you are looking for a home in the DC metro area, you know there is more to the process than just picking a property and making an offer. You need to find the best location for your wants and needs, get a great price, and work with a lender who will make your life easier - not harder.  Trust your search with a Realtor who is licensed in DC, MD and VA and really knows the city and all its secret neighborhoods.

Start your search with the Lise Howe Group, Washington Natives who love the city and all its quirkiness! If you are moving or relocating to Washington DC, be sure to ask for our relocation guide. Call us at 240-401-5577 to schedule an appointment or email us at lise@lisehowe.com.  Too excited to wait to talk to us about a great home? Just click here to start that home search.

If you want to see what is for sale in Washington DC, Chevy Chase and Bethesda, check out these links below:

Bethesda Condos for Sale

Chevy Chase Condos for Sale

Bethesda Single Family Luxury Homes

 

Chevy Chase Single Family Luxury Homes

Luxury Single Family Washington DC Homes

Washington DC Single Family Homes Under $1 Million

 

Washington DC Condos

 

Lise Howe
Long and Foster/Christies International Real Estate

7161 Woodmont Avenue, Bethesda, MD 20815
240-401-5577 (24 hour direct)
Licensed in DC, MD, and VA
Associate Broker, GRI, ABR, CRS
The Lise Howe Group
Howe Real Estate Should Be!
www.lisehowegroup.com

www.bethesdahomesforsale.com

www.kenwood-forest.com

www.thelisehowegroup.com

www.homesinchevychasebethesda.com

 

 

       

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Rainmaker
1,531,878
Amanda S. Davidson
Amanda Davidson Real Estate Group Brokered By eXp Realty - Alexandria, VA
Alexandria Virginia Homes For Sale

Joan, great choice for a re-blog. Lise nailed this post and sure is timely advice for the current market. 

Jun 28, 2017 05:17 PM #2
Rainmaker
401,573
John Wiley
Fort Myers, FL
Lee County, FL, ECO Broker, GRI, SRES,GREEN,PSA

Joan, I missed Lise's post and thank you for sharing it. It is full of important tips to help the buyer achieve a successful acceptance of their offer.

Jun 28, 2017 06:29 PM #3
Rainmaker
2,089,587
Grant Schneider
Performance Development Strategies - Armonk, NY
Your Coach Helping You Create Successful Outcomes

Good Morning Joan - This is good advice and I would not want to waive inspections.

Jun 29, 2017 07:43 AM #4
Rainmaker
854,738
Nick Vandekar, 610-203-4543
Long & Foster Real Estate Inc 610-225-7400 - Devon, PA
Tredyffrin Easttown Realtor, Philly Main Line

Buyers are between a rock and a hard place as we say, but they need to protect themselves and be sensible however frustrated they may be.

Jun 29, 2017 12:13 PM #5
Rainmaker
3,250,437
Lou Ludwig
Ludwig & Associates - Boca Raton, FL
Designations Earned CRB, CRS, CIPS, GRI, SRES, TRC

Joan 

Great choice to re-post of the mistakes to avoid when a offer on your dream home.

Good luck and success.

Lou Ludwig

Jun 29, 2017 07:47 PM #6
Ambassador
3,984,754
Debbie Reynolds
Platinum Properties - Clarksville, TN
Your Dedicated Clarksville TN Real Estate Agent

I loved this post the first time I read it. Thanks for sharing again.

Jun 29, 2017 08:45 PM #7
Rainmaker
4,798,182
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Great choice for a re-blog, Joan.  Lise has given us all some valuable tips.

Jun 30, 2017 04:56 AM #8
Rainmaker
5,682,912
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

This is an excellent selection for a reblog. Thanks for sharing this advice.

Jun 30, 2017 05:46 AM #9
Rainmaker
4,268,984
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

John, I thought so too, and why it was worthy of a re-blog.

Jun 30, 2017 12:52 PM #10
Rainmaker
4,268,984
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Amanda, as much advice as we can get in a Seller's market!  

Jun 30, 2017 12:53 PM #11
Rainmaker
4,268,984
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

John, I thought so too, Lise did a great job with her post.

Jun 30, 2017 12:53 PM #12
Rainmaker
4,268,984
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Grant, don't think any market is good enough to waive an inspection, they are too important.

Jun 30, 2017 12:54 PM #13
Rainmaker
4,268,984
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Nick, I like that - just be sensible when making offers!  Good one!  

Jun 30, 2017 12:54 PM #14
Rainmaker
4,268,984
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Lou, Lise did a great job with this post! 

Jun 30, 2017 12:55 PM #15
Rainmaker
4,268,984
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Debbie, nice that you saw her post before.

Jun 30, 2017 12:55 PM #16
Rainmaker
4,268,984
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Gabe, they are valuable tips! 

Jun 30, 2017 12:55 PM #17
Rainmaker
4,268,984
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Roy, I thought so too.

Jun 30, 2017 12:55 PM #18
Rainmaker
189,241
Debra Kukulski, Broker Associate
RE/MAX Suburban - Cary, IL
SRES;SFR,CDPE;GRI;ABR;e-PRO Realtor, Northern IL

I agree on the pre-approval letter-great list!!!

 

Jun 30, 2017 01:07 PM #19
Rainmaker
4,268,984
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Debra, without a pre-approval your offer won't be viewed the same! 

Jul 03, 2017 06:48 AM #20
Rainer
57,467
Sandy Aslin
Remax - Fairfield, CA

Great. Points! Thanks for sharing

Jul 29, 2017 07:27 AM #21
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Rainmaker
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Joan Cox

Denver Real Estate - Selling One Home at a Time
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