Top 5 mistakes buyers make when submitting an offer.
There is only so much the internet prepares you to engage in a live negotiation. By the time you’ve signed a contract there is no turning back and adding any terms, concessions, date deadlines, fixture requests etc are likely to not be approved. All of this needs to be discussed and agreed upon upfront. Here are 5 mistakes you can make when submitting an offer.
- Not knowing how many other buyers are engaging with the seller. Wouldn’t be nice to know if you’re up against other offers? Or how about knowing what stage of the process the other buyers are in? Did they submit an offer? Was inspection scheduled? Is the contract still being negotiated? Knowing where you stand next to others is very important.
- Working with an online bank for your financing. If you want your offer to stand out make sure you are pre-approved by an established bank and work with a local mortgage lender. The overall process will be better. A local mortgage lender knows your market and understands the real estate in that market. It would help to know if their underwriter is in the same office which makes the process streamlined and efficient.
- Making Low Ball Offers. Regardless of whether it's a buyers or sellers market, low ball offers are usually not responded to or taken seriously. There are extremely rare instances where a seller would engage with a low offer but 99% of the time it is not an effective negotiation tool.
- Not knowing all of your costs: Did you know that apart from your down payment you will have closing costs as well? Plan these to be between 3%-4% of your purchase price. Your closing costs may be higher if you’re purchasing new construction.
- Not working with a real estate agent: It cost you nothing (in most cases) to hire a real estate professional to do 90% of the work for you. A good agent is worth having in your corner. They will manage everything for you and make sure you’re not leaving money on the table.