Top 4 Mistakes Buyers Make
Are You Making These Mistakes?
Seller’s Markets are hard on buyers, no doubt. However, if you can avoid the most common mistakes buyers make, you will be that much closer to closing the deal on your dream home.
There are mistakes we have seen made when writing offers for homes in this tight inventory market. Whether or not someone is working with an agent, we have seen these over and over again.
It can be devastating to find out your offer wasn’t chosen and lose out on your dream home. The best case scenario is to have a savvy agent representing you who knows the ins and outs of buying a home in a tight Seller’s Market. (We happen to know some agents… have you tried The Real Estate Pros team?)
Top 4 Mistakes Buyers Make in a Seller’s Market
Here is our list of top 4 mistakes buyers make in a Seller’s Market. Know them and be sure to avoid them at all costs!
#1 – Not Moving Quick Enough
Gone are the days of making showing appointments 2, 3 or 4 days after a home has come on the market. Most homes these days are selling within the first day or two and sometimes in mere hours.
When you see a home you are interested in, go see it immediately!!
You also don’t have time to get a pre-approval or think about writing an offer after viewing a home. You have to be ready to move on it quickly!
The Pre-Approval process should take place before you ever start looking at homes in person. It is a waste of your time to make appointments for showings if you are not already armed with a Pre-Approval letter – because other buyers are!
When you find the perfect home, be ready to write the offer. The old saying, revamped a bit, holds true in this market:
#2 – Not Making Your Best Offer Out of the Gate
Agents and buyers alike, are making a mistake by not presenting their best offer FIRST!
Sellers and listing agents DO NOT have to ask for “Highest and Best” offers when they receive multiple offers. It is completely up to the seller. Some will, some won’t. Your best bet is to make your BEST offer in price and terms right up front.
Even if the seller instructs their agent to call for highest and best offers, you can stand firm knowing your offer is the best one you want to place on this property.
It’s actually becoming more and more common, right now, for sellers to just choose one of the offers presented WITHOUT calling for highest and best from everyone. Don’t lose out on your dream home because you held back. It can be heart-wrenching!
#3 – Not Being Prepared for a Bidding War
In this local seller’s market, bidding wars are common. It’s best to be prepared for them and if it doesn’t happen, all the better! Just don’t be surprised if it does!
One trick you could use if bidding wars are normal in your area, is to set your search to a price that is a bit below your maximum budget. That way, if bidding breaks out, you still have room to go up!
#4 – Not Learning from the Mistakes
Some have to make mistakes before they learn, and that’s okay. But if you have lost out on your next home more than a couple of times, it’s time to change.
Look at what your offer entails – price as well as terms. You want your offer to stand out to a seller. You can learn from your mistakes as well as others.
Apply what you learn to your next offer. It just might get you the call you are waiting for: You got the house!!!
Your Agent is there to help and guide you through this market. Do you have a strategy plan? You should!
Avoid Mistakes Buyers Make
Take this info and apply it. You will be ahead of the competition and buyers in a seller’s market need all the help they can get!