You searched high and low for a Tulsa home. Finally, you found one. But when you submitted your offer, the seller said “no thanks”. Oh, the heartbreak! Avoid the agony of defeat by sidestepping common mistakes to craft a great home offer.
How to Create a Great Home Offer
Common Mistakes Buyers Make
Lowballing – Lowballing your home offer is a risky business. When inventory is high and/or a house has sat on the market for a while, you might be able to get away with a lower offer. But, anytime you try to go really low, you run the risk of making the seller mad. Trying to get the best deal possible makes sense. Insulting the seller does not.
Low Earnest Money Deposit (EMD) – Your earnest money (“good faith”) deposit shows a seller how interested you are in the property. When going into escrow, the seller acts in good faith by taking their Tulsa home off the market. They do not consider any other offers at that time. They keep the EMD if a buyer gets cold feet at the last minute. In a multi-bidder situation, they may choose a slightly lower offer with a higher EMD.
Contingencies, Contingencies – Asking for too many contingencies also discourages sellers from accepting your home offer. Some contingencies make sense (home sale, appraisal, inspection). Others do not (new flooring, paint, patio furniture). When it comes to contingencies, keep it simple. Talk to your real estate agent to determine what (if any) contingencies to include in your offer.
How to Avoid Rejection
First, get your financing together before you even start your search. You are going to need an approval letter to go with your offer. Then, work with an agent who knows the Tulsa real estate market. Listen to their advice when they talk about a home offer price. Keep contingencies to a minimum. Provide a decent Earnest Money Deposit. Finally, do not take a rejection seriously. Just regroup with your agent and move forward. Contact me when you are ready to start your Tulsa home search.
Lori Cain, REALTOR®, Serving Midtown and the greater Tulsa, OK area. Call 918-852-5036.
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