Avoid These Comon Mistakes When Planning to Submit an Offer to Purchase

In competitive housing markets across the country, making an offer that sticks has become increasingly difficult. Do not make the process even tougher by succumbing to one of these common mistakes:

Delaying
Dragging your feet means you could wind up paying more in a bidding war situation or missing out on the property altogether. Buyers need to be ready with their paperwork, such as bank statements, a preapproval letter, and documents supporting proof of funds, from the day they begin house-hunting mode. That way you can pursue with an offer when you do find a home you like. Many sellers will not consider an offer without these essential documents indicating a ready, willing and able buyer.

Making an offer for their preapproved amount
Smart buyers are getting preapproved to show a seller they’re financially able to purchase a home.
Many buyers come in with a preapproval for the exact offer price, but when you’re competing against other offers, including cash offers, you want to show financial strength. An exact preapproval could make a listing agent nervous because not only does the buyer not have any wiggle room to negotiate, but they might no longer qualify if interest rates rise.

Submitting a lowball offer
Lowballing a seller often backfires, particularly in a seller’s market. A lowball offer that isn't backed up with math or comparable sales data is disrespectful and could turn off the seller and possibly mean you will miss out on the property completely. Additionally, if the seller counters your offer, other interested parties may be submitting an offer for the same property. Sellers do not always provide all interested parties an opportunity to submit their "highest and best" offer when presented with multiple offers.

Waiving inspection contingencies
Regardless whether it’s new construction or even your mom’s house you’re buying from her – get it inspected. Further, if you waive the inspection contingency in your offer, you may lose the earnest money if you later back out of the transaction.

Not presenting yourself well enough
In a seller’s market, buyers need to take steps to make sure they look good in the eyes of the seller. In today’s highly competitive environment, the listing agent is trying to determine which buyer will be the easiest to deal with. Buyers may want to avoid pointing out every defect, making nitpicky queries, or questioning the seller’s tastes.
Basically, buyers who act less than enthusiastic will see themselves at a competitive disadvantage when sellers are comparing multiple offers.

Source: realtor.com Edited by Scott Snyder - Welles Bowen Realtors