It’s not over once you’ve found the house you want. Now you have to make an offer. Some common mistakes at this stage include:
- Low-balling - New buyers often offer too little or want too many concessions from the seller. That can alienate the seller, with the result that he simply rejects the offer without even a counter.
- Paying too much - Avoid bidding wars at all costs. Sometimes the threat of another buyer is simply a ploy to scare you into upping your offer. Even if there is another buyer, make sure you are well prepared and know the fair market value of the property. You do not want to get caught up in the excitement and over pay. In case there isn’t another buyer, let the seller know you’ll be interested if the “deal falls through.”
- Being afraid to negotiate - Most of us hate to haggle, but negotiation is the key to the best deal. Know your bottom line and be prepared to walk away if you can’t meet it. Knowing as much as possible about the seller’s situation, including his time frame, is an enormous help (a Buyer’s Agent can be very helpful here). Likewise, try to keep information about your own financial situation to yourself; the seller will be looking for information about you that they can use to their advantage during negotiations.
- Being pressured into a quick deal - Don’t let the seller’s side pressure you to a quick close. It could be a sign that something’s not right. If the property has been on the market for a long time, there’s probably no rush. Remember, there’s always another place that’s right for you.
- Not asking the seller to pay for extras – Don’t be afraid to ask the seller to pay for the home inspection and a survey of the property (you need to know where the boundaries are and exactly what you are purchasing). Your agent can advise you on this.
- Not including conditions – Don’t be afraid to make your offer conditional for fear of losing the home. Eg. Even if you are preapproved there is a chance the lender may not like the property you are purchasing or the area. Keep in mind a preapproval only approves you as a qualified buyer.
If looking at purchasing a home in Brooklin or anywhere in Ontario for that matter. Give me a call at The Mortgage Centre 905-425-1580.