If you are a buyer hoping to be the winning bid, try to avoid making these common mistakes when writing your purchase offer.
First of all, time is of the essence. If you have toured enough homes, you usually know when the right one comes along. Be ready to pounce and have all of your financial ducks in a row, including bank statements or verification of down payment funds and a recent pre-approval letter.
Don’t furnish a pre-approval letter from an obscure mortgage lender.Yes, you may have been shopping loans online and have a certificate from somewhere, but most listing agents are uncomfortable with pre-approvals from out of state lenders or unknown online entities.
Consider using a well-known local mortgage lender or bank for your initial letter of financial qualification. You can always switch after the offer is accepted. Don’t be afraid to prove you are qualified for more than your offer price - you want to show financial strength especially if competing with cash offers.
Avoid lowball bids, even if the property has been on the market awhile. Review comparable sales with your agent and make a reasonable offer.Alowball offer that isn’t backed up by math or comparable sales is disrespectful and could turn the seller off to continue negotiation.
With new listings, you may not have a chance to raise your offer if a better one comes in. Start strong and hope to eliminate any competition.
Don’t let well-meaning advisors sway your offer.You may have a tribe of close friends or family who will have opinions on the property, but trust your Realtor for market knowledge and experience.
And don’t forget to sell yourself. If you are lucky enough to meet the listing agent at open house, introduce yourself to put a face behind the offer, but don’t ask a lot of nitpicky questions. Show some love for the property and write a personal letter to the seller.
Adriana Donofrio • deasypennerpodley Glendora (626) 926-9700 adonofrio@dppre.com