title

Ask your agent to be sure and send an email, with the contract, asking that it's been received.   Easy peasy.

2. Outdated or vague lender letters or proof of funds

3. Lack of details about financing 

The bigger the better...down payment wise, that is...

Why does this matter? Agents need to understand the strength of the buyer when it comes to advising their sellers, so they understand the potential of that particular buyer.  It is reasonable to know how much of a down payment the buyer is putting down, along with the amount they plan to borrow. 

The seller needs to understand the risks involved and the likelihood of that buyer being able to get to the closing table. 

4. Binder / escrow deposit

This amount will vary depending on your market, and what local custom is as far as an acceptable amount and, of course, depending on the buyer’s financing (such as VA or FHA vs. conventional). In some markets, you may be tempted to make an offer with a weak deposit. 

While deposits can be refundable if a contingency comes into play, a seller wants to see how much skin a buyer is willing to have in the game.

If you are writing an offer on an $850,000 home, do you really think a $5,000 deposit is sufficient? 

5. Contract timeframes 

Please get a calendar out when you are writing an offer and count all out before writing in the number of days or specific dates. Are you going on a cruise?  Planning a wedding?

While most real estate contracts state that if a contract timeframe falls on a Saturday, Sunday or a legal holiday, it rolls over to the next business day, be precise with your dates and be sure all parties, including the lender, can work with the timeframes you are creating. I try not to have closings on a Friday, because if something goes wrong, it can't be fixed until Monday...leaving you in a hotel over the weekend instead of your new home.

6. Contract deadlines

The loan approval date has a way of sneaking up on everyone in the transaction and can have an impact on whether or not your money is returned to you if the home does not go thru to closing.  If you have a loan approval contingency your agent will ask you to 'waive it' as of a certain date set forth in the contract.  In some contracts it must be waived in writing, in others the date may just pass and you're 100% locked into the contract terms, even if something goes wrong with your loan and you need to get out.  Your down payment may be held by the seller as a liquidated down payment.  It pays to pay attention.

7. Home warranties 

How many times have I received an offer with a box checked where the buyer is asking the seller to provide a home warranty at closing and the agent hasn’t provided any information: The specific home warranty company desired, the level of coverage, what it should include, and “at a cost not to exceed X amount”.   Be specific...check out what is provided at what cost.

Please don’t go back and ask the seller to add a warranty later An agent recently claimed they initially “forgot” to write it in the offer. Um...Sounds like a great closing gift to me. 

8. Seller concessions 

This is another area rife with mistakes. Make sure you clarify with the buyer’s lender (before writing an offer) what you can request based on the kind of loan the buyer is doing. Words matter. Are you asking for up to a percentage of the purchase price or a dollar amount? If you are asking for a concession towards an interest rate buydown, make sure you consult the lender on the wording — Is it a temporary buydown or a permanent one? 

9. Contingencies 

If you are dealing with any special contingencies in your offer outside of the normal ones that most contracts cover — financing, inspections, appraisal, and so on — please be specific. When it comes to contingencies on selling property, please include the address. 

Also, state that the offer is contingent upon the sale and closing of XYZ Street. If the property is already under contract, state it is contingent upon the closing of XYZ Street, when that closing will take place, and include a copy of the contract.  It goes a long way toward making your seller feel good about accepting your offer.  Just closed one of these last week.

10. What stays or goes 

And again, just closed one of these last week.  Seller made off with one of a set of four barstools and a very embarrassed agent (not me lol) had to go pick it up and return it to the very embarrassed buyer (he was uncomfortable asking...) Many “level 10 meltdowns” occur at the final walkthrough when chandeliers or bathroom mirrors, curtains, rods, appliances, or patio furniture that the seller had agreed to leave behind have vanished with no explanation. When in doubt, write it out. Check your contract language carefully as it pertains to attached items and what is listed as included in these paragraphs. The listing agent may have stated in the MLS that curtain rods and drapes in X room were excluded, but this detail was omitted when the contract was being finalized. Hence, the seller removed these, but contractually this was never addressed. 

The MLS sheet contains a disclaimer about “information deemed reliable, but not guaranteed” so you can’t look to MLS; it is what is written in the contract that matters.

11. Additional terms 

Please read the fine print here. 

If you want a leaseback at a price, a long closing, the home to be professionally cleaned upon vacating, “broom swept” condition, which is often the standard referred to in many contracts, is not the same thing.

12. Time for acceptance

Stop sending offers with barely any time for acceptance. Just because you’ve put a short timeframe, such as four hours, doesn’t mean it is going to happen. 

I know you think your offer is very strong and you think 'hardball' by giving the seller an hour to accept it, but the reality is: the real world of offers doesn’t work this way. 

While time is of the essence, there is time involved with not only sending and explaining the offer to the seller but discussing and determining how they want to handle it.

You also need to allow enough time for negotiation and finalizing the offer. Some agents use counteroffer forms, others mark up a contract, etc. This can take hours or days so don't sell yourself short.  Once your offer 'expires', it's dead and needs no further negotiation on the part of the seller.  If a better offer comes in you could have just squashed your offer before it even gets started.

13. Rewriting contracts 

Depending on what is customary in your area and the forms you utilize, some agents take it upon themselves to completely rewrite a contract based on all terms agreed upon. Yikes. This can leave room for mistakes with numbers transposed and details left out. Especially if the agent goes into the draft of the first offer and starts making changes. It can be very easy to get confused. Don’t do this. 

There needs to be a chain of documents showing the changes and offer/counteroffers between the buyer and sellers. 

14. Escalatory addendums / clauses 

Don’t do this. It is like playing with pretend money. We aren’t playing a game of Monopoly here. Only commit to what you realistically are willing to pay

15. Offer packages

Be sure all addendums are signed and sent in with the offer.  HOA, condo, receipts for documents, CDDs...are all a part of the contract package you are offering the seller.

How are you going to take title? What is the name of your trust?  Where is it?  You'll need to provide a copy to the title company.  Better to think about it up front rather than a last minute addendum that needs to be signed by everyone before closing.