Common Offer Mistakes
You fell in love with a house the second you walked in (they call that love at first fight), but now what? After a long journey finding a home that felt like the perfect fit, losing the house would be detrimental to your search process. We know it’s exhausting and we understand how complex this process can get. So, we’re offering our best advice when deciding to make an offer.
It’s much better to begin your home search getting pre-approved before you dive too deep into the buying process. Being pre-approved means your offer is favored over another buyer who has not yet gone through that process. You will learn through pre-approval just how much you can borrow based on several factors.
With that being said, do not submit an offer for the entire amount the bank says they are willing to let you borrow. Getting pre-approved for a $200,000 house does not mean you should bid the entire amount. In the event that they don’t end up giving you that much, you could be hurting yourself financially. The decided upon loan amount fluctuates with interest rates, which can get you into a risky situation. You want to have enough leftover to raise your bid in the instance that another buyer bids higher.
If you are able to bid close to the asking price without jeopardizing your entire pre-approval, don’t haggle the seller by aiming low. There are many occasions when a seller will become aggravated and insulted by an offer much lower than the price they’re asking. In case you didn’t know, their home is the best home on the market in their mind. Lowballing could cost you a phone call back from the seller or immediately take you out of a bidding war for the home.
A contingency is a roadblock to arriving at your final home destination, but there are certain contingencies that are absolutely standard. Standard contingencies to include are contingent on a home inspection or on receiving proper financing. It won’t ever hurt to ask for a specific contingency, but be prepared to sacrifice in the instance that it is denied or could cause the deal to fall apart. When navigating contingencies, listen to the expert in this situation: your experienced BHHS Professional Realty agent!
Try to take any emotions that could turn negative out of this process. As difficult as that is for a buyer, this stage in the journey is most important to eliminate all emotions from unless it is the feeling of being overjoyed by your new home. Be prepared to keep searching for a home even after an offer is on the table and don’t become jaded by features of the home that are most appealing. Having a trusted real estate advisor by your side will ensure your emotions are checked at the door before you even begin to enter the offer process. Being let down is much worse than not letting yourself set unrealistic emotional expectations from the beginning.
You’re down the final stretch of your search and the finish line is near! Don’t make any of these mistakes that could potentially harm your chances at securing an amazing home with features you cannot wait to show to friends and family at your housewarming party.