Top mistakes to avoid when making an offer

You have finally found a house that you can call home and cannot wait to buy it and move in. You can already see your new life in the new yard. However, there might be a hurdle on your way to owning the house – the offer. Many people blow their chances of owning their dream home by making mistakes in their offer. In the competitive housing arena, you do not want to make these mistakes listed below.

Maxing out on the pre-approved amount

Given the number of people that may be interested property, you may end up in a bidding war. The best way to win the war is to have a strong financial backing. This starts with getting a pre-approval to show that you are prepared to take the home.

However, when making an offer, do not submit the price that is at par with the maximum pre-approved amount. This denies you a chance to negotiate. It also disqualifies you when interests rise during the process. Look for a house whose value is below your maximum pre-approved amount.

Delay in making offers

Delay is the ultimate deal killer. When you wait until it is very late, you give room for much more to come in and may lose the property in question at the end of the day. Get all your paperwork ready from the first day when you start looking for a house. Such paperwork includes bank statements, preapproval letter and any other financial supporting document. When ready, you can pounce on a home as soon as you find it.

Making a lowball offer

Bid accordingly from the very start. The property market is a sellers’ market. An offer that is too low may not see the light of the day. Most people lowball with the hope of getting the agent to talk and start a negotiation. Unfortunately, with a large number of offers that agents receive, your low offer will end up in the dustbin.

When setting the price for your offer, look at selling prices for comparable properties in the area. You can make an offer that is slightly higher or lower than the median price of comparable properties in the area. You will increase your chances of getting your offer considered.

Failing to get the house inspected

A house may look good from the outside or the inside but still, have faults that are not easily recognized. The roof may be leaking, the foundation could be sinking, or the plumbing may be having problems. Many buyers make a mistake of not having the house inspected before they make an offer. They move ahead and make a transaction only find glaring problems once they move in. If you have the house inspected beforehand, you can ensure that problems are fixed before you complete the transaction or ask a discount equal to the cost of fixing the property. 

Make your offer irresistible to the seller. Make it as fast as you find the house, have the right price, ensure that it is inspected by a professional and leave room for negotiating on the price. This increases your chances of getting the house.