21 May 6 Common Mistakes Buyers Make in a Seller’s Market
If you haven’t heard the news yet, let me be the first to break it to you….we are in a seller’s market. There aren’t enough homes for sale to accommodate the numbers of buyers. Home prices are going up because of the high demand for houses. Yet, interest rates are so low, buyer’s don’t want to wait. Here are some common mistakes buyers make in a seller’s market.
1. Hiring and Inexperienced Real Estate Agent in a Seller’s Market
Should you even hire a real estate agent? YES!!! This is not the type of market in which you want to go it alone. You need someone working for you to get you the best deal possible in a seller’s market. As a buyer, know that you do not pay your real estate agent. The agent’s commission comes from the seller. Hiring a buyer’s agent is a win-win.
Have I convinced you to get yourself a real estate agent? Good. Now, don’t just go calling your Uncle Fred who your mom said she thinks is a real estate agent, or your friend’s friend Anne who just got her license. This is a huge purchase and the cost to hire an agent is the same, no matter who you hire. The moral of the story is…don’t use someone with little to no experience as a buyer’s agent just because you feel bad and want to help them out.
Experience is key, especially in a seller’s market. You need someone who knows the ins and outs of the entire process, who is an experienced negotiator, and for whom this is not their first (or second) rodeo. Did you know that the expert team of real estate agents at Homearly is the most productive team in the area? They are involved in hundreds of transactions each year. And, they are super nice and helpful.
2. Lowballing In A Seller’s Market
Do you want to get your offer accepted? Then you’ve got to realize that in a seller’s market, one seller might receive multiple offers. If yours is the lowest because you wanted to get a deal, your offer might not even get looked at. You don’t necessarily need to be the highest offer in the pool of offers, but you need to be competitive. The experts at Homearly show 500 to 800 homes, on average, per week. They know the inventory, the neighborhoods, and understand the valuations. They can help you craft the best offer possible for your budget.
3. Impulse Buying In A Seller’s Market
There are stories of buyer’s buying a home sight unseen in a seller’s market because they want to beat the rush. Sometimes a buyer in a seller’s market might feel like they are going to miss out on an opportunity if they don’t act fast. This is not a good idea. You are going to have to live with (and in) this purchase for years. The home you choose doesn’t necessarily have to be perfect, but don’t let FOMO make you impulse buy something you will totally regret once the papers are signed.
4. Hesitating in a Seller’s Market
I know I just said not to move too fast, but just as important in a seller’s market is to not go too slow. Know what you are looking for before you start searching for it. Then, when you find it, make your best offer. In this market, someone else could swoop in and make an offer while you are still trying to decide if you want to make an offer. Once the seller accepts an offer, they can only accept other offers as back-up offers, even if the back-up offer is for more money.
5. Not Being Prepared for a Bidding War in a Seller’s Market
Bidding wars are common in seller’s markets when there aren’t enough homes for sale. This is yet another reason to have a seasoned real estate agent working for you who won’t be surprised when this happens. An experienced agent will know how to counter and negotiate on your behalf so you have the best chance of getting the house you want. Your agent will also be able to tell you when it’s time to walk away so you don’t overpay.
6. Not Being Pre-Approved in a Seller’s Market
Your buyer’s agent will know that you need this and won’t let you make an offer without one. A pre-approval letter comes from a lender saying how much money you will be approved for based on your income and credit worthiness. When you provide this letter along with an purchase offer, the seller will know you are a serious buyer who will be able to afford the transaction and pass the loan contingency.
Ready to buy in this seller’s market? Call the team of real estate agents at Homearly to be matched with an experienced agent who knows how to navigate the current market.
Homearly is a network of Real Estate Specialists and partners united by the simple purpose of providing great service to everyone who asks for it. We are here for you, give us a call anytime at (714) 823-8558!
Talented and brilliant representative, and a wonderful person.
We are so grateful to have worked with him. And when the time comes to sell or buy a home again, there is no one else we could imagine turning to.