Avoid These Six Common Mistakes When Making an Offer on a House

Making an offer on a home you’d love to buy is arguably the most stressful part of the buying process. You’ll be worrying about making the right offer, whether you’ve presented yourself in the best possible light, and just how much competition you’re up against.

Today we’re going to help you alleviate that anxiety by giving you the most common real estate offer mistakes to avoid, and show you how you can increase your chances of getting the perfect home for you.

1. Do your research on the house

You have a lot of research to do before making an offer on a home. You’ll want to know the price the home formerly sold for and improvements that have been made and that will need to be made if you move in.

It also helps to know the seller’s situation. Are they on a deadline and moving out-of-state? If so, they might be tempted to take one of the earlier offers they receive.

2. Know your own financial limits

Before you ever make an offer you’ll need to know how much you can spend. This isn’t just a matter of offering the maximum amount you’re preapproved for. You’ll have to factor in moving expenses, final payments on your last rent or mortgage, changes in utility costs, and more.

3. Don’t offer your full preapproval amount

Sellers who know that you’ve offered your maximum preapproval amount may be wary of selling since they know you lack room to negotiate your budget and therefore might have a higher chance of backing out of the offer. They might favor other buyers who have room to negotiate and account for unexpected changes in their budget or of rising interest rates.

4. Avoid aggressive negotiation

We know the stakes are high for everyone involved in making a real estate deal. However, sellers are more likely to accept the offer of someone they trust and like over someone who seems to be trying to gain leverage.

Always be cordial with your offers and support them with numbers–explain to the seller why you chose the number you did, so that they can understand your reasoning.

5. Don’t attempt to gain leverage by waiving a home inspection

By law, you are allowed to have a home professionally inspected before purchase. Waiving this right is sometimes misconstrued as a way to tell a seller that you trust them and don’t want to cause them any unnecessary headaches.

The reality of the matter is that if you truly do want to own their home, sellers understand that you want to know what you’re buying.

6. This isn’t the only house you can be happy in

Hunting for a home is hard work. Once you find one that seems perfect for you or your family, it can seem like everything depends on your offer being accepted.

However, the fact is there are endless houses on the market, and next week a new one could be put up for sale that is even better than the home you’re hoping for now.

If your offer isn’t accepted and you don’t feel comfortable committing to a higher price, move on to the next house knowing that you made the best decision under the circumstances.

The Qualities To Look For In Good Realtors

When you buy a home, you may wonder what the benefits of having your own realtor to represent you are. If you’re a first-time homebuyer, you probably will have a lot of questions. If you’re a second-time homebuyer you may still have a lot of questions! Buying a home can be a long, tedious process. It’s very helpful to know that you have a knowledgable realtor by your side to represent you and help you through the home buying process. If you’re looking to buy a home in a tough market, hiring your own realtor to represent you as a buyer is especially important. 

First, you should consider interviewing some prospective buyers agents in your area. Maybe you can get recommendations from friends and family as well. Learn what you can expect from a top realtor who will represent you as a buyer. 

Honesty Is The Best Policy

Your agent should be completely honest with you. While they can’t tell you what you personally want in a home, they should give you every last disclosure. No agent should put a home value or their own commission above their clients. This means that there’s strict documentation that realtors must follow including a code of ethics and standards for practice. A realtor must uphold these promises.  

Judging honesty in a realtor can be difficult. An honest real estate agent will help you through the home search process, for example. This is a good place to start. If the realtor points out some of the potential issues that you may have as a buyer in a home, you can see that honesty is one of their main policies.

Good Communicator

A realtor should be in frequent communication with you. Even if your home search isn’t active, they will check in, and see where you’re at in the process and if your needs have changed. 

Your realtor should alert you if offers have been made on properties that you’re interested in as well. Your buyer’s agent should reply to texts, e-mails, or calls within a short time frame of receiving them. Having a realtor that’s on top of things for you is important when it comes to buying a home since, without their help and information, the perfect home could slip through the cracks for you.                  

Knowledge Of Rules, Regulations, And Best Practices

Your buyer’s agent should have extensive knowledge of the real estate rules and regulations that are within your state. Each state has different practices when it comes to buying a home. Hiring a buyer’s agent is especially helpful if you are unfamiliar with a state or city. Your agent will be well-informed on all of your responsibilities as a buyer, as well as how and when you should complete these tasks and signings throughout the entire home buying process.

3 Miscellaneous Expenses for Homebuyers to Consider

You’ve found the home of your dreams, can afford the regular mortgage payments and even accounted for your closing costs, too. Clearly, you’re in a great position to cover the costs associated with your home consistently, right?

Even the most diligent homebuyer may encounter unforeseen costs along the way. Fortunately, we’re here to help you prepare for these miscellaneous expenses.

Here’s a closer look at three miscellaneous homebuyer costs that you’ll need to consider before you purchase a residence:

1. Homeowners Association Fees

Planning to move into a condo? You’ll want to find out what the homeowners association (HOA) fees are before you close on your residence, as these costs can add up quickly.

HOA expenses usually cover the costs associated with keeping your lawn clean and looking great, clearing snow from roads and driveways in winter and other condo community costs. As such, these fees may wind up costing you several hundred dollars each month – a hefty sum that every condo owner needs to know about.

To find out if HOA fees will affect your monthly budget, be sure to consult with your real estate agent. This professional should be able to get in touch with a HOA and determine exactly how much you’ll need to add to your budget each month to account for these costs.

2. Unexpected Income Changes

Your income may change over the life of your mortgage, and as such, you should try to plan accordingly.

For example, consider what may happen if your full-time work schedule is reduced to part-time hours. This may prove to be exceedingly difficult, particularly if you don’t have a Plan B in place to pay your mortgage.

When it comes to potential income changes, it always is better to err on the side of caution. And a homeowner who has an emergency fund in place may be able to cover regular mortgage costs even if his or her everyday wages are reduced.

3. Emergency Medical Bills

Unfortunately, medical emergencies can arise without notice and wreak havoc on a homeowner’s budget. But even though these emergencies can put a financial strain on a homeowner, this homeowner still will be responsible for making regular mortgage payments.

Emergency medical bills, like unexpected income changes, should be accounted for as part of an emergency fund. Furthermore, homeowners who contribute to this fund monthly can accumulate finances that will be readily available in even the worst-case scenarios.

Buying a home requires a significant financial investment, but homebuyers who prepare accordingly will be able to ensure that they can manage any financial hardships that could come their way.

No homebuyer wants to consider financial hardships, but working with a resourceful and intelligent real estate agent may help you prepare for the worst. This real estate professional may be able to offer guidance and tips to help you budget for your new residence and ensure that you’ll be prepared for any emergencies as well.

Plan for your new home purchase as much as you can, and ultimately, you’ll be better equipped to make regular mortgage payments and manage any financial hardships along the way.

What to Look For During a Home Showing

A home showing represents a great opportunity for prospective homebuyers, as it enables homebuyers to get an up-close look at a residence and determine whether to make an offer on it.

As such, it is important to prep for a home showing; otherwise, a homebuyer could miss out on a golden opportunity to find the right residence at the right time.

So what should you look for during a home showing? Here are three factors that every homebuyer needs to consider:

1. A Home’s Exterior

Although the home you’re visiting caught your eye as you drove past it in your car, you may notice problems when you take a closer look at the residence’s exterior.

For instance, cracks or chips in the driveway or along the front steps may need to be repaired and may impact the amount that you offer for a residence – or whether you decide to submit an offer at all.

Of course, no home showing would be complete without checking out the condition of the house’s siding and roof, either.

If you’re uncertain about the condition of these areas, be sure to ask the home seller’s real estate agent for more information. By doing so, you can make a more informed decision about whether a particular residence is right for you.

2. A Home’s Heating and Cooling System

Ideally, you’ll want a house that stays warm in winter and cool in summer. But in many cases, an old heating or cooling system may prevent a homeowner from maintaining comfortable temperatures inside a house at all times.

Ask about the age of a heating and cooling system during a home showing. This will allow you to find out if this system will need to be replaced or repaired in the immediate future.

Find out about the efficiency rating of a house’s heating and cooling system as well. Remember, the higher a heating or cooling system’s efficiency rating, the more this unit will be able to save a homeowner on his or her monthly energy costs. And if you find a home that boasts a high-efficiency heating and cooling system, you may be able to save money on your energy bills down the line.

3. A Home’s Doors and Windows

Do a home’s doors and windows open freely? If not, they may be in need of serious repair, which ultimately could put a major dent in your wallet if you decide to purchase a particular residence.

The costs to repair or replace defective doors and windows can add up quickly. Thus, you’ll want to ensure that all of a house’s doors and windows are in great condition before you purchase a residence, and you can learn more about their condition during a home showing.

When it comes to finding the right house, you’ll always want to consult with a reliable real estate agent, too. Your real estate agent is readily available to assist you in any way possible, and he or she will be able to help you discover a top-notch house that meets all of your needs.

Spend some time getting ready for home showings, and you’ll be prepared to find an excellent home that you can enjoy for years to come.