Failing to close on a property could cause a domino effect in failed transactions. By coming to the negotiating table with pre-approved financing, you are signaling to the seller that you are serious about purchasing this home. Save for a sizeable house deposit and know what you can swing financially on each offer you make, so you can include an escalation clause if need be. Some people think that because it's a home they are buying they can easily change their mind and be released of any obligations of the deal. If you don’t have an agent, you need to do this sleuthing on your own. Due to the lower likelihood of final approval, many sellers don’t seriously consider financed offers without attached pre-approval documents. Looking at homes is an exhilarating experience for many. In fact, if you follow the steps below, you can secure your dream home in no time. In hotter markets, homes often stay on the market for just a few days (or even hours) and attract bids at or above list price. That's very dangerous, unless of course you intend to buy both places. Reach him on Twitter. Andrew has worked on projects for the United Nations and USC and has a particular passion for investing and finance. A great way to do this is simply by writing a nice letter. Don't think you can just test the market, or see what the other side says without consequence. If the seller has multiple offers on the house and yours isn’t among the most attractive, he or she may simply ignore the offer. Tell the truth, the whole truth and nothing but the truth. Even though my wife and I had a real estate agent who drew up the purchase offers and counteroffers we made on our recently purchased house, we learned a lot during the process. See why 218,388 people subscribe to our newsletter. This gives you an up-to-date picture of your local market, which is particularly crucial if the home has been on the market for a few months. Just don’t mull over then for too long, or a more quick-footed buyer could beat you to the punch. However, these buyers could lose the money from the inspection if their offer isnât accepted. © 2020 Money Crashers, LLC. However, the contract’s execution is almost always contingent on certain things, collectively known as “contingencies.” Some contingencies are inserted by the buyer or their agent for the buyer’s protection, while others are inserted by the seller or their agent for the seller’s protection. It also spots a home that’s obviously overpriced – if the CMA suggests a market value in the $250,000 to $270,000 range and the home is priced at $300,000, you’ll have space to negotiate.