gmhTODAY 15 gmhToday July Aug 2017 - Page 51

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