Mistakes to Avoid When Writing a Home Offer

Writing a home offer takes some strategy. If you want a real shot, you can not go into this blindly. Sometimes, simply being aware of what to avoid can make all the difference. Here is some advice on putting your best foot forward. Know that you did everything you could to get your dream home by keeping these pitfalls in mind.

Low Balling

Avoid going too low on an offer. A house will sell for what it is worth, so if you found your dream home, put in a fair offer. It should feel like a win for the sellers as well. Some offers can be negotiated, while some offers are offensively low, and in that case, you would be wasting everyone's time, including your own. It is advised to base an offer on the fair market value by having your agent compare similar properties that have recently sold in the area. These comparables, or "comps," help determine a range of acceptable prices for a particular house. Then a house's condition and unique amenities can be taken into account. Next, the current market must be considered.

Allowing Sale Prices to Be Your Only Guide

The sale price matters, but it is not the only thing to focus on. These prices will likely be rolled into a mortgage that you will pay off in increments over time. You don't want to miss out on a home that was right for you based on what would end up being the slightest difference in cost a month. If the price of a home is only a little bit more than what you wanted, that might only mean a few more dollars each month throughout the loan time. Consider if your dream home is worth being flexible on the sale price. You can have your lender help you figure out what the monthly payments would be.

Including Unnecessary Contingencies

Contingencies assist in the process of the transactions, which can include inspections or ​​mortgage approvals. They help the sellers and the buyers to have a fair way out of the transaction if it does not make sense to proceed. Contingencies can help buyers with the opportunity to exit the transaction with the security deposit still in hand. However, sellers typically like to avoid them, as they don't want a good deal to fall out after so much time and energy has been put in. Therefore, a contingency-filled offer is not appealing to sellers. Limit the number of contingencies you add to an offer and stick to your priorities.

Disregarding the Seller

Avoid writing an offer based on only what you want. Offers stand out when they address the needs of both parties. A strong offer will show the sellers that you care about working with them and figuring out what is fair. Consider how you will compromise with them. Your agent can help you take the seller's motivation for their own move into account when drafting the offer.

Not Being Quick to Act

Submitting an offer can be nerve-wracking, but you never want to keep a seller waiting too long for an offer. If you are too slow, this indicates to sellers that your interest in home buying is not that serious and, therefore, is a risk to the transaction. It is helpful to know how you feel about a house before writing an offer. If you have second thoughts, ensure your agent does not disclose this to the listing agent. Speak with your homeowner's insurance agent about this next chapter for you before a title gets transferred to your name, so you are protected with what may be your most significant investment.

About David G. Sayles Insurance Services

At David G. Sayles Insurance Services, we help our clients decide which of these options is best for them based on their current situation and risk factors. Contact us at 1-855-977-1842 or insureme@dsayles.mysites.io for a consultation!