Common Mistakes First Time Home Buyers Make When Buying a Home In a Sellers Market
Helene Kelbaugh of Keller Williams Realty Baltimore
We are coming out of what we refer to in our real estate industry as a "Buyers Market. This transition seems to be speeding up. All the "TV talking heads" have drilled the "Buyers Market" verbage into the mass media. But news makers have not really talked about the transition that is happening now and quickly. The law of supply and demand is very simple. Low inventory (including short sales and foreclosures) + more and more buyers (even more once the school year is over) = a Sellers Market! It is important for Buyers to begin to digest this new "Seller Market" now and before the search begins!
Understanding the home buying process and the current market buyers are shopping in is crucial to a successful purchase.
Avoid the most common mistakes and don't miss out the home of your dreams!
- Know your numbers before you look at a house!!
ALWAYS get preapproved before shopping for a house. If you ask, your lender should be willing to provide an estimate for you before you begin your search. Don't know of a lender? Talk to your REALTOR for a recommendation of a trusted lender. A $300,000 home sounds beautiful, but what does that mean for you monthly? Does if fall in line with your monthly expenses? Do you know how much closing help you need. If not find out. Figure out what works monthly and then work it backwards. Knowing what you can afford upfront will make for a better negotiation and experience.
- If you love the house WRITE A REAL OFFER!
Folks re-read the beginning. We are in a Sellers Market. The low ball offers of a few years ago are gone! Now sellers aren't even countering. Why not? Well here are some comments that come from sellers who receive these low offers?
- "Can these buyers really afford the house?"
- "Are these buyers playing games?"
- "Rejected"
- "Your offer is to low."
Wonder why todays seller may not even counter or why they counter back at list? If the comments above are what they think when receiving your offer, it's time to rethink your strategy. Give your strongest and best.
- My friend got a steal on house and want the same steal!
What does a great deal mean to you? Another mistake home buyers make is assuming they will get the same "deal" their friend got. 9 times out of 10, they only have half the story and it's in another market. So I ask again, what does a great deal mean to you?
- Waiting to long to decide to write an offer
In case you haven't there are more buyers than sellers right now. Just like you another family could be looking at the very same home and are ready to write! As they are writing and submitting their offer, if you are days just thinking about it, that could just be a gift you accidentally a fellow buyer. If you love it write a serious offer quickly or regret it!
- Beware when bringing family and friends (not on the mortgage) to showings
This is a big decision and having people close to you help with the decision can be helpful or it can hurt. I've seen both. Be sure to sit with your REALTOR and discuss home needs and goals. Homes being shown should match this conversation between you and your REALTOR. Everyone has an opinion, including those very close to you and the very things you love in a home, your friends and family may not. Don't let that discourage you from pursuing the home.
"You can only make some of the people happy all the time and all the people happy some of the time, but you can't make everybody happy all the time" Author Unknown
These are just to name a few mistakes home buyers make when buying a home.
What's next?
Meet with a REALTOR or get preapproved.
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