It’s no secret that the real estate market has its ups and downs, so when you decide to buy it can be a challenge to determine whether the market favors buyers or sellers. In a seller’s market, buyers can get what they’re after, as long as they stick to their guns and stay on top of things.
Following are some common missteps buyers make and how not to find yourself in that situation:
- Working with an agent with too little experience. It’s crucial for buyers to have the most seasoned agent possible in a seller’s market. Make sure your agent is always putting you first, doing all they can to get you the best possible home and the best price. Never make the mistake of working with an agent who isn’t familiar with the process or isn’t a good negotiator. If you do, it will not serve you well.
- Worrying about the price. When you find your dream home, if it’s in the neighborhood you want and in your price range, go ahead and make an offer. Don’t second-guess yourself and start believing that you could maybe get a better price. If you love the house and it meets all your requirements, pull the trigger. One more thing, get preapproved for the loan so you’ll be able to move quickly on the purchase.
- Not making your best offer. Everybody wants to get a great deal on whatever they’re purchasing, almost making it second nature to try to broker a better price. In a seller’s market, however, there’s just no time to make bottom of the barrel offers – unless the home is way overpriced or there’s plenty of homes like it that cost less. Remember, you likely won’t be the only one looking at the home so make your best offer up front, making the seller more prone to choose your offer over others.
- Not being ready to increase your offer. If it’s a seller’s market, a bidding war could definitely happen. Best thing you can do? When looking for your home, leave a little room in the budget in case you do get involved in a bidding war.
- Thinking you’ll get the deal of a lifetime. Unfortunately, great deals rarely exist in a seller’s market so they’re pretty rare – unless you have an extremely motivated homeowner who is moving or desperately needs the money. Let’s face it, with the market in an upward climb, in many situations after a year or two your purchase price will likely look like a great deal.
- Not being preapproved for a loan. If you’re taking out a loan for the purchase of a home, getting approved in advance by your lender is very important. Being preapproved means the lender is ready to give you the loan, which means you can act quicker.
- Learn from past mistakes. If you’ve made a few offers before and none of them have worked it’s important that you try to figure out what went wrong so that you won’t make the same mistakes.
- Not being ready to make your move. When the market is booming, properties are quickly going from being listed to being under contract. So, if you find a home you’re truly interested in, don’t procrastinate. If you do, you may well lose it.
Remember, in a seller’s market, nothing is certain so do your homework, get preapproved and be ready to sign on the dotted line when you find the perfect home!