Desiree Renshaw

5 Common Buyer Mistakes and How to Avoid Them

In Spokane’s competitive real estate market, mastering the art of attractive offer creation is crucial for buyers aiming to land their dream home without compromising financially. We’ve created a Mistake Cheat Sheet to help you avoid common missteps that may devalue your offer and ultimately end in a bidding war!

Cheat Sheet – Mistakes to Avoid:

1. Submitting an Offer Blind: Always understand the seller’s unique needs before submitting an offer. Do they have a preferred closing date? Are they interested in a rent- back offer? Do you know how to navigate a rent-back if they do? Never assume all sellers are the same and have the same motivations.

2. Letting the List Price Guide Your Offer: This is where an experienced real estate team comes in EXTRA handy. It’s important to keep in mind that the seller and listing agent came up with this number for their own reasons and that they may not align with yours as a buyer. Perhaps they intentionally priced it low to encourage a bidding war and secure the highest possible price? Or maybe the listing agent is unfamiliar with the area? It’s important to consult an experienced real estate agent who is familiar with the area. Together, you can evaluate price comps, investigate escalation points of nearby pending properties, estimate the rate at which home prices are rising, and come up with your own number that aligns with your financial capabilities and timeline.

3. Overlooking the Low Appraisal Addendum: This addendum protects sellers from a price re-negotiation after appraisal. It ensures that the agreed-upon purchase price is the price they actually get at closing, regardless of how the home appraises. This is an obvious benefit to the seller, but also to the buyer, as it allows you to compete with cash offers. Understanding that not everyone can feasibly include this addendum from a financial perspective, it’s important to understand how it works, whether it’s a possibility for your specific situation, and how to best structure it within your offer.

4. Choosing the Wrong Lender: I don’t know who needs to hear this, BUT… seriously, you would not believe the number of times we have this conversation with our clients. There are a lot of lending options out there, they are absolutely not all created equal, and they can make or break your transaction. The right real estate team can provide trusted referrals, but they can also guide you in the right questions to ask regardless of who you go with. And the right lender can expedite closing, provide the most competitive rates, and make your offer more attractive overall. Make sure you engage the right team to meet your end goals!

For those navigating the Spokane real estate market, whether pondering a sale or contemplating a purchase, our team is here to lend our expertise. Contact us today and let’s ensure your next real estate adventure is not only successful, but enjoyable!

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