There’s no doubt this is a difficult environment for buyers. With low inventory and high demand, buyers have few options to choose from and an abundance of competitors. However, there are plenty of buyers who are doing themselves a massive disservice by making one (or several) of the following mistakes:
1. Not being aware of just how competitive the market is. They’re not properly educated on the dynamics of our low inventory and high demand, so they’re heading into the market with expectations that are too hopeful.
2. Not being pre-qualified. Talking to a lender and getting your finances straight is the very first thing you should be doing. If you’re purchasing a home with financing, you absolutely must be pre-qualified well in advance.
3. Not being ready to buy instantly. The market is very strong. Hesitating on a decision for a day can make the difference between you getting and not getting a property. Be prepared to submit an offer immediately if the property is right.
4. Being overambitious with the terms of agreement. Buyers are including way too many contingencies and asking for miscellaneous personal property. The more strings you attach to your offer, the less appealing it becomes and the longer it can take to get it under contract. You need a clean offer that focuses on the most important issue–the price. Home inspection periods should be limited to as short as possible.
5. Asking too many questions at the wrong time. Only ask the questions that determine if you make an offer or not. Other questions that are not immediately important can wait until later.
6. Waiting to review comparable sales. There is a time and a place to review comps. However, you need to know that looking at past sales may have nothing to do with real-time value. It’s helpful to being reviewing recently closed and pending sales while you are looking so you don’t waste precious time digging into older comps.
7. Not writing offers on backup properties. Don’t be afraid to make an offer on your second or third choice. That way, if the keys to your perfect home wind up in someone else’s hands, you won’t feel demoralized and starting from scratch.
As always, feel free to reach out if you have questions about this or any other real estate topic. We are happy to be a resource for you and assist with whatever home-buying needs you may have. We want to put buyers in the best position for success. With the right advice from the right real estate company, you can get yourself into a home you love.
