7 Mistakes That Will Sink Your Offer

After searching high and low, you've finally decided on the perfect place to call home! This is an exciting time, but remember to keep your expectations in check; after all, the house isn't yours until you craft the winning offer. In the strong seller's markets that dominate much of the country today, this can be easier said than done. Although there is no way to guarantee that your offer comes out on top, avoiding these common mistakes can maximize your chances!

Mistake #1: Not Acting Quickly

The most common mistake that buyers commit when making an offer is to act slowly. Once you've found the right house, submit the offer ASAP. Any delay could increase your chances of getting sucked into a bidding war or losing the house altogether. It's fine to be nervous about such a major decision, but dragging your feet will often equal losing the house.

Mistake #2: Offering Your Pre-Approved Amount

It might seem to make sense to get approved for and offer the amount of money that you expect to spend, but this leaves you without any wiggle room should a bidding war start over the home. Instead, look for homes that are under your maximum pre-approved amount so that you have room to negotiate after the initial offer.

Mistake #3: Borrowing From Unknown Lenders

Always seek mortgages from well-known and/or local lenders. Sellers and their agents will be more comfortable with offers from established entities.

Mistake #4: Lowballing

Many people have the false impression that the first offer should be a lowball (aka a much smaller amount than asked for). Unless you have evidence to back up such a price, very low offers often backfire by insulting the seller. 

Mistake #5: Waiving the Inspection

Some buyers are tempted to sweeten their offer by waiving the inspection contingency. As a general rule, this is a terrible idea. Even when the seller seems trustworthy (such as when buying from a relative), the home could still be hiding a major problem from everyone.

Mistake #6: Letting Other People Plant Doubts

It is absolutely fine to seek multiple opinions from trusted friends and family before you place an offer, but don't let those unfamiliar with the process convince you to back out. Although they mean well, outside opinions might not consider current prices and market conditions. If you've seen 10 homes and know that this is the one that best that fits your needs, make the offer.

Mistake #7: Not Selling Yourself

The fact may not occur to you, but an offer is more than just a number on paper. The seller's agent will be more inclined to work with buyers that are polite, considerate, and enthusiastic. Likewise, sellers will not be thrilled if you nitpick every little flaw in their home to their face. If they receive similar offers from multiple buyers, the winner is often the one that made a better impression or wrote a personal letter with their offer.

Source: "In It to Win It: Land Your Dream Home by Avoiding These 7 Mistakes on Your Offer"