How Not to Sabotage Your Own Offer and Improve Chances of a Successful Closing
While not complete, here is a handy list to follow during the home buying process to increase the odds of a successful closing.
1 If you’re going to seek a mortgage it is important to get pre-approval from a reputable lender shortly before you make your offer. This will give the seller confidence that you are qualified to purchase the property.
2 Be sure to make a competitive offer. Low balling is a sign to the seller that you are not serious. There is after all a market, and a check of the asking prices of comparable properties is something your broker should be able to do. Often the seller ignores these types of low ball offers.
3 Do not request unrealistic terms or conditions. Normal business procedures exist for a reason – they have been proven over time to work best and are understood as fair as possible to all parties. Straying from the norm will usually result in problems: no one wants to feel that they are being taken advantage of.
4 Submit a complete offer with the proper paperwork, without errors, and with appropriate signatures. (This, of course varies from state to state.) Not being careful in this regard is a red flag indicating that you are sloppy and lack the necessary seriousness.
5 Another sign of seriousness is moving forward at a brisk pace. This shows clear intention and you are not having second thoughts.
6 Be sure to get a real estate agent that you trust and who has roots in the area where you want to purchase. Your agent will tutor you on market conditions and potential pitfalls that experience has taught him.
7 Don’t make any big financial moves from the time your mortgage is approved and the closing date. For example, any extra debt you take on during this period is likely to affect your credit rating, and hence the closing.
8 Put down a proper earnest money deposit (whatever is the norm in your area). This is the money usually held in escrow when both parties have signed the contract and set the closing date.
9 Don’t be a perfectionist. No home is perfect (even the one the buyer is currently living in), and some compromise is always wise. It is important to be reasonable and appropriate during negotiations. Try to keep your emotions in check. And as mentioned earlier follow normal business procedure and listen to the seasoned council and advice of your real estate broker.