With the market tightening up, and becoming more geared towards a sellers market, buyers are feeling the press of the competition in the market. I am personally coming across less on the market, and more multiple offer situations. Some buyers are growing frustrated with not being able to find what they are looking for in a timely fashion. Being an agent that has much experience with the buy side of a transaction, i stress the following 6 points with my buyers when the market is in its current situation.
Not making your best offer right off the bat
We all want a great deal, but sometimes that $5,000-$10,000 difference isn’t worth losing the home. If it fits all you need, want, and are looking for don’t over negotiate. Chances are, there is another buyer that may see the same benefit as you and will offer closer to what the seller wants. Really consider offering your best right away.
Overthinking the sales price
Relating to my first point, a buyer can “sleep on it” too long and end up losing the house. Just because you looked at the home or even told your agent you liked it a lot, that doesn’t stop or hold the seller obligated to wait for you. The seller will usually take the first offer that reaches their desired price so they can reach their next destination or goal. Focus more on the monthly price than the purchase price.
Working with an inexperienced agent
This is a very competitive market, and you need every advantage you can get. Having an agent that knows all the tricks of the trade (or one that has a teams support to) really puts you in a good place. In this market, your client has to have the “time is of the essence” mindset to make it happen.
Not being Pre approved
To piggyback off of the last point, an experienced and savvy agent will only bring out a client that has a mortgage approval. This puts you in a position of being able to offer on the home you like as soon as you see it. This means the mortgage broker has ran your credit, and let you know if this is something that can happen financially. Puts you in the best position to move forward.
Not being prepared for a bidding war
One of the biggest things I tell my clients in this market, is don’t be naive. What I mean by that is, you’re not the only person looking at this home. The same things that wowed you and impressed you, will impress the next person. This is why offering your best right away if necessary to stand out if these situations present themselves. If the home is priced well or below where it should be, just be mentally prepared for the situation to happen.
Not learning from your mistakes
A seller declining your offer isn’t an uncommon thing, and losing a bidding war isn’t either. The key is to learn what exactly it is that you could’ve done better for the next go round. Don’t beat yourself up if you don’t get the house, a better one is likely coming that will work for you. Learn and be better each time, and you will get that home.
I hope these tips help you understand some things you can do to position yourself better in this market. It is very competitive but if you remain patient and smart, things will work in your favor. As always, if you have any questions or would like to get the process started, please reach out to me.