The Bay Area housing market moves fast, and first-time buyers often feel pressure to act quickly. Here are the most common mistakes I see, and how to avoid them.
1. Not Getting Pre-Approved First
A pre-qualification letter isn't the same as pre-approval. Sellers want to see you've been thoroughly vetted by a lender. Get your pre-approval done before you start touring homes seriously.
2. Waiving Contingencies Without Understanding Them
In competitive situations, buyers sometimes waive inspection or appraisal contingencies. Before doing this, understand what you're giving up and the risks involved.
3. Ignoring the Seller's Timeline
Sometimes a higher offer loses to a lower one because the seller needed a specific closing date. Ask your agent about the seller's needs.
4. Being Inflexible on Small Terms
Things like a rent-back period or including the refrigerator might matter more to the seller than a few thousand dollars. Be strategic about what you negotiate.
5. Writing a Price You Can't Actually Afford
Overbidding is common here, but make sure you can actually afford what you offer, especially if the appraisal comes in low.