Avoid the 8 Biggest Mistakes When Making an Offer on a Home
It’s exciting when you’ve made the big decision that you’re financially and emotionally ready to buy a home here in the Bay Area. Perhaps you’re a first-time buyer or you’ve been down this road before. Either way, few of us have made home purchases more than a handful of times, which leads me to say, “Education is the cornerstone of a smooth, successful transaction.”
Even if you don’t have a great deal of practice when it comes to the ins and outs of residential transactions, there are highly experienced and reputable professionals out there to guide you.
My advice is to connect with the best advisors you can find and save yourself some time and trouble. You’ll definitely save money—quite possibly a substantial amount—by avoiding these eight common pitfalls in buying a home here in northern CA.
Finding the Property Before Securing Financing
First things first. Step one should be determining how much you can afford and the second step is getting pre-approved for a mortgage. You wouldn’t go shopping without a means to pay form your purchase, so why do that when looking to buy a home?
It’s one thing to get educated about the market, comparables, look at neighborhoods, commute times, schools and so on. Then step back and sort out the money side of things in order to proceed with confidence.
Failing to Get Pre-Approval for a Mortgage
Be prepared with the required paperwork. A seller will give preference to a buyer who is pre-underwritten to avoid the possibility of losing the sale when it’s time to close. I can help you be that buyer.
My “Pre-Underwrite” Approval process sets me apart from other lenders by going above and beyond the general “pre-approval” protocol. We complete a full verification of your assets, income and employment, plus a secondary credit check to eliminate any potential issues down the road.
Not Getting Professional Financing Advice
Why wing it? Stress is never a good thing. You’ll feel in control and empowered by my team’s thorough approval process that positions you to close on your desired property in 18 days or less. Your offer will have details about your loan approval to ensure that it’s much more substantial and credible than a competing offer.
Not Using the Best Agent You Can Find
This one is simple: Who’s your real estate agent? Don’t be fooled into thinking you’ll save by using the seller’s agent—that individual does not and cannot have your interests at heart.
The bottom line is that if you haven’t shopped and interviewed carefully to select the right agent for your home purchase, you’re missing a trick. Selling to buy? Doubly important. Before you start house hunting, hire a buyer’s agent to represent you and your negotiating power.
Of course, I have great relationships with some of the best over nearly 20 years. Sadly, I’ve also seen what can go wrong when home buyers don’t partner with an expert.
Holding Out for the Perfect Home
Clearly, buying a home is not like shopping for the perfect red lipstick. You won’t find dozens of slightly different shades lined up on display for you to compare at a moment’s notice. Finding a “dream home” or a “forever home” places extraordinary pressure on any buyer.
Nonetheless, we understand that it’s personal and there are emotional factors in the mix. My team will arm you with the I.Q. (intelligence quotient) on market conditions and financial confidence to spot the right opportunity so that you can properly balance the E.Q. (emotional quotient).
Being Distracted by Flashy Finishes
What can happen when a prospective buyer falls in love with a home at first sight? Its not that different than dating! No bells and whistles or flashy finishes should have you overreaching on budget. And no swimming pool, chef’s kitchen or hardwood floors can make up for the wrong location, location, location. Don’t fall in love too quickly and keep a level head with the process.
Not Considering Resale Value
It can be difficult to think ahead when you’re focused on the details of buying now. In 5-7 years, on average, you could be wearing the seller’s hat. Study the neighborhood, find out about planned developments in the area, services and schools, parking and public transportation, public utilities. Follow neighborhood-centric apps and read local news.
Lowballing Your Offer
Avoid. Research your comparables, understand market conditions, be confident about your pre-underwritten financing and bid as though you will not have a second chance. Making an insultingly low offer can almost guarantee that there won’t be a second opportunity for a buyer. "Why Low Balling Your First Offer Can Cost You"