Mistakes to Avoid when
Making an Off er on a Home
W
hen buying a home in the current competitive market it can become diffi cult
to get your offer accepted, especially in a multiple offer bid situation. You
can ensure a better outcome by avoiding making some common mistakes.
DON’T DELAY
Be ready when you fi nd the home you like. As a buyer, you will need to take
the time to prepare the proper paperwork and acquire a pre-approval letter
from your lender. Paperwork needed includes: bank statements, proof of funds
documentation, tax returns, work paycheck receipts, and lists of all you payment
obligations and income you receive.
MAKE YOUR APPROVAL LETTER FOR MORE THAN THE AMOUNT NEEDED
Many buyers present an approval letter for the amount of the full asking price. If
the offers go over the asking, the sellers may than worry about the buyer ability to
qualify at the higher price. Your offer will very well rise to the top if your approval
letter is for more than the asking price. This shows fi nancial strength and the
ability to still close escrow if the interest rates rise.
BEWARE OF SUBMITTING A LOWBALL OFFER
Sellers are aware of market values and in many situations, they price their home at
the last sale comparable, hoping it will go over the asking price. Offers presented
are not always countered so you could lose out to a higher offer without being
given a chance to up your offer. You may also insult the seller or make them feel
you are not serious. Their response will be to not negotiate or work with you at
all. Having the seller feel good about your offer may mean the difference between
losing out or being the winner.
DON’T WAIVE INSPECTION CONTINGENCIES
If the seller has not provided all the inspections you feel are necessary in order to
understand the property, do not waive your right to inspect. If do waive your right
to inspections, you may lose your earnest money deposit if you back out of the
contract later.
PUT YOUR BEST FOOT FORWARD
Sellers are looking for buyers who love their home. They are not looking for a
nitpicky buyer who points out every defect. Be sure to do a cover letter presenting
yourself and/or your family. You can even include a picture of the family. I have
seen many sellers chose a buyer who they feel will really love their home as much
as they do. Be enthusiastic about buying so you have the competitive advantage in
multiple offers.
Fast
Facts
Morgan Hill
March April May
Active (Homes on the Market) 87 89 83
Homes Sold 55 33 68
Average Days on the Market 27 35 26
99.7% 101.5% 100.3%
Sale to List Ratio
GILROY • MORGAN HILL • SAN MARTIN
JULY/AUGUST 2017
Teri Nelson, Realtor
Intero Real Estate Services
408.425.5200
BRE#00858151
gmhtoday.com