Tuesday, February 28, 2012

6 Mistakes Homebuyers Make With Lowball Offers -#5 & #6

5. Not making a clean and easy offer

Make sure there are as few contingencies as possible

When you make a low bid, you want other elements of the offer to be attractive to the seller. And a deal that can close quickly will often have appeal.

Make sure there are as few contingencies as possible. It's best if buyers don't have a home to sell in order to buy the one they're bidding on.

Also, have your financials in order from the start. Loan qualification is more difficult these days, so it's important to have a lender preapproval letter.

6. Assuming cash will always get you the best deal

Cash is king, but in the end, a seller often wants the most money for his home — regardless of whether the buyer needs a mortgage or not. So don't think making an all-cash bid will automatically mean an accepted offer.

That said, if the seller is a bank because the property is a foreclosure, the institution may accept a lower offer from a cash buyer, as opposed to someone who needs a mortgage. Banks often don't want to deal with mortgage-related delays.

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