When you are in the market for a new home these days, it’s likely that you will be competing with a host of other potential buyers. That’s why you need to put your best foot forward when you find the dream home you want.
Winning the bidding competition requires making sure that when you make an offer it is well thought-out, covers all the bases and will put the sellers at ease about you – and your bid.
Think of the offer as being a marketing piece that gives your agent an opportunity to sell YOU. A complete, well-organized offer lets sellers see that working with you will be a low maintenance experience. This is critical since sellers can get very picky when they get multiple offers.
Many sellers know that they have the stronger position and will take even a small criticism as an insult – that will disqualify you and your offer BEFORE they even get to the amount that you have chosen to offer. They don’t need to be forgiving and won’t put up with any potential grief.
Things You Should NOT Do
- Not include a pre-approval letter
If you don’t have one, you should make the effort and work with a lender who will give you one
- This builds your credibility
- It shows that you can qualify for a mortgage in an amount that is equal to or greater than your bid because the lender has run your credit report and it substantiates your ability to be approved
- It also outlines the basic conditions for your loan which improves your competitive position
- Submit sloppy or missing paperwork
If the actual offer and/or disclosures are missing and/or incomplete, it sends the wrong message.
- Sellers don’t want problems
- Mistakes or poor paperwork are going to give them the impression that working with you will be trying – and follow the same path of mistakes
- Sending comparable sales with your offer
All you do here is annoy the seller and their agent
- Make your offer and try to avoid the impression that you are out to beat them down on price or conditions
- Buyers are better off saying very little or nothing when justifying a low offer
- Not leave a reasonable amount of time to respond
- While some buyers and their agents think this is going to put pressure on the seller, all it usually does is create hostility and frustration
- Smart buyers will try to work with the sellers to show that they are not only interested in the home but also are actually nice folks who care about the people who are selling it
- Don’t try to criticize the property you are trying to buy
- It makes no sense to belittle a home you are trying to buy – if it’s that awful, why are you offering to buy it?
- “Bad-mouthing” the house isn’t going to win you any favors with the sellers of their agent either and will not only doom your offer – it will also be a waste of time for you and your agent