Real estate transactions come with an overabundance of pitfalls for inexperienced and even seasoned buyers. Even the smallest mistake could cost buyers many thousands of dollars. However, knowledge combined with patience can help buyers in Minnesota overcome the pitfalls and avoid costly mistakes.
Making the initial offer is one of the most frightening aspects of real estate transactions and it is where most inexperienced buyers make the biggest errors. The following section includes four mistakes to avoid when making your offer.
No mortgage preapproval: Even when you have good credit and can afford mortgage payments it is still important to acquire preapproval from your lender. This shows the seller that you are serious about the property and will be able to come up with the funds to make the purchase.
Wrong offer amount: This is one of the trickiest aspects of real estate transactions. If you bid too low, the seller may feel insulted and move on to other interested parties. If you bid too high (e.g. the entire preapproval amount), the seller may feel suspicious about your credibility.
Too many contingencies: If you fill your offer with many demands that need to occur before the purchase, the seller is likely to walk away from the deal. It is best to stick with common contingencies such as having the property inspected before the deal can close. An attorney is an excellent source of knowledge about which contingencies to list and which ones to leave out.
There is one more mistake to avoid and that involves not having an experienced individual to represent your interests exclusively. Often, an agent can fill this role, but many buyers choose to work with an attorney instead. This can help you avoid pitfalls and it gives you an advocate to support you if a dispute arises during or after your real estate transaction.