The media tells us that it is a buyer’s market. In fact, you cannot turn on the television or read a newspaper article that does not touch on the fact that there are more homes out there, than there are buyers to buy them. That does not mean that your dream home is going to sit there and wait forever, though. When you are buying a home, being a smart buyer is crucial.
Mistake: I think I’ll wait until that home drops a few more thousand dollars until I make an offer.
Bad idea Mr. Buyer. Regardless of what you hear on the local news, when it comes to making a home purchase, being an educated consumer will get you much farther than being a contentious one.
Fact: You are not the only person viewing that home.
Fact: The person that wanted to “mull it over” yesterday is making an offer today.
Advice? When considering a home purchase, if you have found the home that feels 90 percent like home, it usually is. Get a market analysis from your agent and be prepared to make an offer after viewing.
Mistake: I just don’t feel like I’ve seen enough homes.
How many homes do you feel is a valid number before you find “the one”? A consumer’s approach home shopping can be very interesting, but also highly perplexing to most real estate professionals. Home shopping is like anything else in some respects. After all, how many times have you walked into a department store to find that perfect outfit, only to find it’s the first thing you look at?
Fact: Having a set number of homes in mind to view is often self-defeating, and “browsing” will keep you from looking at homes that you are most serious about.
Fact: There is not a “magic number.” Finding the right house is about internet research first and shopping later. Good agents will provide buyers with information on homes that they narrowed down by doing complete research with the buyer to discover their needs, wants, and preferences before getting in the car.
Fact: Home shopping is confusing. Most buyers forget the details about a home after they have viewed 5 or more.
Advice? Be prepared. Use the advice of your professional. Narrow down areas before you shop for a home. This makes your home selection process seamless and rewarding.
Mistake: I am going to find a house first and get my financing done later.
This is one of the most common, and worst mistake a buyer can make.
Fact: Seller’s will not entertain an offer without a mortgage pre-approval letter.
Fact: Professional agents will not work with buyer’s who do not have a pre-approval letter.
Fact: Financing takes time. In the time it takes to get your financing in order, will be the time that someone with a pre-approval letter can come in and make an offer on the house of your dreams.
Advice? The facts speak for themselves. A pre-approval letter is a necessity, and should be one of the first steps that a buyer takes when home shopping.
The best homes always sell the fastest, in a buyer’s market or seller’s market. Waiting for that “dream home” to come up on the market, or that perfect home to come down in price will cause you to miss the home that you really want. When shopping, have a competent and professional buyer’s agent by your side. The best buyer’s agents hold the Accredited Buyer Representative (ABR) designation, making them skilled at negotiations and research. For a list of ABR’s in your area, contact your local real estate board or search online at the National Association of Realtors.