3rd Common Mistake Home Buyers Make
#3: Make An Offer.
The third common mistake that most home buyers make is not knowing the home’s value before making an offer. The “Let’s Try This and See What They Say” method of negotiating with sellers can quickly result in losing the home of your dreams.
Before you make an offer, ask your agent to complete a Comparative Market Analysis (CMA). This report will include comparable homes that have recently sold nearby, which will give you a better idea of what the home you’re interested in is actually worth.
If the home is located in a sellers’ market, I recommend offering the price suggested by the CMA rather than starting lower. Most buyers want to start low in order to “get a deal,” but their “low-ball” offers usually get rejected and the sellers just accept another buyers’ offer.
Although price is the most important term of the purchase contract, there are also several other terms to consider:
- type of financing (FHA, VA, conventional, or cash)
- seller-paid items (closing costs, home warranty)
- inclusions & exclusions
- review of HOA documents
- owner’s title insurance
- additional contingencies
- closing date
- offer expiration
As you can see, there is much more detail involved in making an offer than you typically see on HGTV. That’s why it’s important to have your agent guide you through the pros & cons of each term – to make sure that your needs are properly represented in the contract.
When you find your dream home, it’s time to pass the baton to your trusted agent. It’s his/her job to make your offer appealing to the sellers while considering your specific needs.
Simply put, it’s your agent’s job to make your dream a reality!
That’s what I do for my clients every day. And I appreciate the opportunity to do the same for you.