I’m sharing some fantastic tips on avoiding common homebuyer mistakes, whether you are taking your first leap away from your childhood home or embarking on a relocation. These mistakes can cause you to lose out on the home of your dreams.
1 Procrastination
Imagine you find the perfect home and fall in love with it, but you hesitate. As time skips by and you finally make your move, someone else swoops in and snatches it away. Indecision can rob you of your dream home. Acting swiftly and decisively will give you an advantage in buying the home of your dreams.
2. Offering Your Maximum Approval Amount
Remember that just because you’re approved for a certain amount doesn’t mean you have to offer the maximum. A common homebuyer mistake of offering the max approval can cause doubt in the seller’s mind. The seller may believe you are stretching your budget and question your financial stability. Be strategic about the current market and make a reasonable offer within your comfort zone.
3. Using an Unknown Lender
Using a lesser-known or online lender can backfire on you. Sellers often feel more secure when dealing with a reputable lender. Stick with lenders that have a solid reputation in your local market. Remember, trust and credibility make a difference.
4. Lowball Offers
We have all heard the saying you never know until you try. That may not always be the case when lowballing your offer. While it is okay to negotiate, making an unrealistic low offer can insult the seller and hinder any chance of a fruitful negotiation. I’ve seen it happen many times in my 22 years. The buyer submits a low offer and does not even get a response from the seller. Be market-smart, fair, and reasonable when presenting your offer.
5. Waiving The Inspection Contingencies
Waiving the inspection contingencies is a tricky tactic that favors the seller, but it can leave you vulnerable to unexpected issues down the line. Remember, inspections are there to protect you and ensure you’re making a sound investment. Think twice before waiving the inspection contingencies as a negotiation tactic.
6. Letting Others Opinions Sway Your Offer
A common homebuyer mistake is letting the opinion of family or friends, and sometimes well-meaning real estate agents sway their offer. Aunt Madge may have good intentions, but it is crucial that you stay true to your needs and financial situation. Don’t let others’ opinions dictate your offer. You know what is best for you, so trust your instinct and make an offer that aligns with your goals and expectations.
7. Not Selling Yourself
When submitting an offer, it’s not just about the numbers. You must show the seller why you’re the perfect buyer for their property. Share your story, highlight your strengths, and create a connection. This can be tricky because of Equal Housing and discrimination laws, but it can be done with a good Realtor® working for you. Often, sellers make choices emotionally, not just based on price. Don’t underestimate the power of selling yourself.
Avoiding common homebuyer mistakes can increase your chances of getting that accepted offer or at least a counteroffer. Go out there, be smart, and find your dream home!
If you are ready to start your home search in the Palm Springs area, contact me, Stephen Burchard, The Desert Bowtie Realtor®, taking the (k)nots out of real estate.
