Mistakes in making an offer

It is a bidding war when come to buying a home. However, the buyer does not have to rush to raise the price on the offer because he/she can try to avoid these seven mistakes first to make the buying process more effective. The 7 commonly made mistakes are:

1. No pre-approved mortgage. First step in the buying process is to really know the budget to spend on the property and seek the mortgage loan. Afterall, the seller favors those who has the funding readily and who is ready to make the purchase once the offer is accepted. The buyer should make sure to get the mortgage loan pre-approval letter from a lender or more to show that he/she is clear to get the funding needed.

1. Giving the whole pre-approved amount. The seller might doubt the buyer’s real estate ability. By giving up the whole pre-approved amount, the seller might think the buyer is inexperience and thus, might not have the ability to uphold and close the deal. The seller often would like to work out on a deal further and not being cutoff short. Also, the buyer should be caution of the ever-fluctuating mortgage rate that might disqualify him shall the rate goes way up. This might force the buyer to stop or back out of the deal which eventually creates a trust-issue for the seller. The best advice is to taking baby steps in arranging the funding and making the offer.

1. Not doing the homework. It is a mistake of not researching the market and the seller. It is always advised to know the prices of the surrounding properties and the real estate agent can help with this task. This will help to equip the buyer to gauge the offer and give the reasonable offer. Getting to know the seller entails knowing his/her motivation to sell the property and whether if he/she is having any difficulty in selling the property. Once known, the buyer can act on the issue(s) and help making the deal go smoother for the both the seller and him/herself.

1. The offer is too low. If the buyer offers below the net worth of the house, there would not be any counteroffer or even further conversations.

1. Don’t hang onto the contingencies. If the property is what you really want, overlooking the small repairs to finalize the deal is wise. However, do not skip the home inspection as this is important to point out the repairs needed for the property.

1. Hire the buyer’s agent. Seller’s agent protects his/her client’s interest. The buyer should hire his/her own agent to help to support the buyer through the buying process with paperwork advise, and resources.

1. Skip all the emotions and hype. Do not let any emotion or excitement take over the conscience. That is why hiring an agent and bringing him/her with you is beneficial. He/she can steer the buyer in the right direction and skip over all the emotions.

Topics: real estate, deal

Work cited: The Mortgage Report; https://themortgagereports.com/38667/avoid-these-7-mistakes-when-making-an-offer-on-a-house