The offer is the most critical part of the home buying process, yet so many home buyers blow it. By knowing how most home buyers sabotage the offer and lose their chance of buying the home they want, you can avoid similar mistakes. Unfortunately, some of these mistakes are all too common.
Low-Balling the Offer
While it would be nice to pick how much you’ll pay for your next home, this should not be the focus of your offer. The seller is trying to get a fair price, so making a ridiculously low offer can often put a crimp in negotiations. While you want to want to get the home for a good price, don’t try to insult the seller with an unreasonable offer.
Paying More May Be Worth It
Instead of trying to go low, keep in mind that the seller is trying to get the most he can for his property. On the other hand, your monthly mortgage premiums will be affected in the smallest ways by a discount of a few thousand dollars. It may be a good idea to use a mortgage calculator as you prepare to make an offer, so you can really see how a lower offer will benefit you. If it won’t do much for your budget, meeting the seller’s asking price can help ensure you get the home you want.
Limit Your Contingencies
A contingency is a condition that must be met by the seller before the transaction can be finalized. If a contingency hasn’t been met, the buyer may back out of the transaction and keep his or her deposit. As this suggests, sellers aren’t keen on too many contingencies. While a few may be necessary and understandable, too many can place an extra burden on the seller. If the seller feels imposed upon by too many contingencies, they may decide to accept another buyer’s offer.
Ultimately, the best approach is to remember that the seller is trying to make a profit from the sale of the home. If you seem to understand that and work with the seller to come to a mutually agreeable deal, you’ll have more luck in getting your offer accepted. When an offer is accepted, be sure to submit your paperwork and payment promptly. Taking too long is another way you could end up losing out on your next home.