The housing market is certainly tipped in favor of sellers right now and this can cause those looking to buy a home to get discouraged. With sellers asking top dollar for their homes, multiple offers being placed on those homes, and a shortage of home inventory, it is easy to be frustrated and feel defeated!!
Even in a sellers market, there are ways that YOU as a buyer can WIN! Here 4 common mistakes buyers are making and how to fix them so you can WIN in a sellers market.
NOT BE PRE-APPROVED
Imagine going out to eat without any cash in hand, no clue how much is in your bank account, and unaware that your credit card is maxed out until you sat down at the table and decided on a meal. Nobody in this day and age would do this! You would look at your finances first to make sure you were actually able to go out to eat. So when making one of the BIGGEST purchases you can make, shouldn't you do the same. In this market, homes are going under contract as fast as they are hitting the market. You need to be pre-approved BEFORE ever looking at homes. Notice I say pre-approved and not pre-qualified! There is a BIG difference in this market with these terms. Pre-qualified is when you tell someone your finances and they tell you they will give you a loan. Pre-approved means that everything you have told a lender has been verified and the loan paperwork has been received! In this market, a seller wants to know you are able to purchase their home and they will go with someone that has been pre-approved over a pre-qualification anyday.
TAKING TO LONG TO VIEW HOMES
You open your morning email and find a home that JUST hit the market. It is gorgeous and meets all your requirements and even has some added bonus items in it as well. Best part is it is under budget! You talk with your agent and schedule a showing for the weekend...only 2 days away you think! Think again because your biggest mistake is to not go and view that property TODAY. 2 days from now that property will likely have had at least 10 showings and likely an offer already made on it. This is assuming it is still on the market! When you have made the decision to buy a home, make sure you are ready to alter your schedule to see a property you like ASAP! The early bird gets the worm and in this case the worms are few and far between!!
OVERTHINKING THE DECISION
You have searched for weeks and either haven't found a home you like or the ones you have made offers on, you have been outbid! You are losing hope that anything that works for you is out there and then it happens. You walk in and this house meets your requirements and budget. This is the time to be ready to make a clear decision. Yes this is the house or no it is not! In this market, buyers do not have the luxury of taking a day or two to think it over! The house you want to think about is the same one that bob's agent just showed him and is now at the office writing an offer for. Know what you want and when you find it be ready to say yes or no! Don't let it be the one that got away because you get cold feet at the last minute!
NOT BRINGING YOUR BEST OFFER
There are times to negotiate and times not to. When I was younger my parents had a famous saying! "You're pushing your luck"! This saying was thrown at me when I was seriously close to getting in big time trouble. This same saying rings true in a sellers market when buyers want to haggle price on a home that's already priced appropriately for the market. If the home is overpriced, then yes you don't want to pay more for it than it is worth. But if your agent has pulled similar homes that have sold and the price is pretty spot on, you should be going with your highest and best offer. Sellers know that they are at an advantage and most will overlook an offer that is not at list asking price. Your agent is an invaluable tool to you when deciding on what to offer, LISTEN TO THEM. They know how many days homes are staying on the market in what areas and they know what homes are appraising for in those areas. Generally their advice is pretty spot on if you have chosen a good agent!!
Any questions today! Please give me a call!