When you find a house you love and are ready to make an offer to the seller, the ideal situation would be for the first offer to be accepted. This can be a challenge when there are multiple offers so it is a good idea to present the best, cleanest offer you can without doing anything to sabotage yourself in the process.
Although there are many ways in which you can sabotage yourself, all are avoidable.
- No Pre-Approval
Given that most buyers will need to use a mortgage to purchase a home, having a Pre-Approval from a reputable lender signals to the seller that you are serious and have the means to see the transaction to its completion. This is because the lender will do a thorough job of checking credit, assets, income, and debts and ensuring that you are financially qualified to buy the property and close. Not having a Pre-Approval sends the message to the seller that you are either not serious or not financially qualified. Check out our Certified Homebuyer Program, the gold standard in the industry.
- Low or Uncompetitive Offer
Sending a low or uncompetitive offer to a seller is a quick way to sabotage a potential deal. Although the intent may not have been to insult the seller, these types of offers can be seen as an affront and can lead to the seller rejecting the offer outright or completely ignoring this and any future offers from you.
- Unrealistic Requests
Not all offers are based on pricing. Presenting unrealistic requests to the seller (in the form of terms and conditions) can increase the likelihood that your offer will be rejected for a cleaner one. For example, asking for seller paid closing costs could be an issue in a sellers’ market. Likewise for making demands for certain appliances (not already described in the contract) or more personal items. Put yourself in the seller’s shoes and think about the offer you are submitting.
- Weak Earnest Money Deposit
Each market is different, but the overriding fact remains that a low Earnest Money Deposit (EMD) can communicate to a seller that you are not as serious as some other (higher) offers. This can be even more critical if there are multiple offers which have other buyers submitting more substantial deposits.
- Incomplete or Sloppy Offer
Any offer submitted to the seller should be complete and without errors. This includes having all the necessary paperwork (according to your state laws) and appropriate signatures. Reviewing your offer with your buyer’s agent (you have one, right?!?) is a great way to ensure it represents your wishes. Sending a sloppy or incomplete offer may signal to the seller that other aspects of the transaction will be the same and the path to the closing table will not be as smooth.
- Moving Too Slow
Waiting too long to submit your offer because you are still considering your decision is a sure way to sabotage yourself. I am not advocating being hasty, but being prepared to move forward will maximize your chances and avoid sabotaging your other efforts. If you are Pre-Approved, have a good understanding of the local market conditions, have created a strong offer with clean terms then you stand a better chance to have your offer accepted in a timely manner.
- Being Unaware of Local Market Conditions
Not knowing the local market conditions (buyer demand, current available inventory, etc.) can be detrimental to your offer. These things can play a large role in pricing as well as timing for the move, types of terms and conditions included in offers and the like. If you have partnered with the right buyer’s agent they can help with explaining these conditions and how they can impact your offer (both positively and negatively). You always have the right to make your own decisions, but ignoring sound advice can have consequences for you and your offer.
Until next time….