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5 Big Mistakes Homebuyers Make in a Sellers Market
June 22, 2016 | Posted by: Dana Stauber
5 Big Mistakes Homebuyers Make in a Seller’s Market
Posted on June 15, 2016 by melanie
The one thing that most would be home buyers do understand is that the real estate markets and
climates fluctuate and can do so rather often. And while they may have the upper hand
sometimes if a market is slow, when it heats up and things begin to favor sellers, they do have to
change their ‘tactics’ in order to get what they want. Here are five all too common mistakes
many buyers make — mistakes that you can learn to avoid — when shopping in a seller’s
market.
Not Offering Your Best
Your best money offer that is. Bargain shopping, for many of us, is almost in our DNA and so,
for some, is bargaining on price. And there are sometimes some very legitimate reasons for
making an initial offer that is less than the asking price. For example, if the comps have been run
and the home is overpriced for the area, or if there is plenty of similar housing stock available.
In a seller’s market however it’s a dangerous game. The vast majority of home sellers do as
much homework on pricing and market conditions as buyers do, so they know what their home is
worth and what’s out there in terms of competition. If they are selling in a ‘hot’ market then in
reality a low ball offer may not be one they even consider for more than a few minutes before
passing.
Playing a Long Waiting Game
No, a home should never be an impulse buy. On the other hand though dragging your feet in a
seller’s market is far from a good idea. You see while you are still deliberating and calling your
Realtor to arrange a third walk through because you are still wavering a little the chances are
good that a more decisive buyer will come into the picture and you’ll lose your shot at the home
altogether.
Not Being Financially Prepared
Getting yourself pre-qualified for a mortgage is a sensible move in general, but in an active real
estate market it is practically a must. Maybe you are 99% sure that you’ll get the financing you
want when you find the right place so you plan to only mortgage shop once you do. However, if
you make an offer most sellers want to close the deal ASAP, and if you still have to get financing
in place they may very well opt for a different offer from someone who does, sometimes even if
it’s a little bit lower.
Not Being Prepared for a Bidding War
Have you ever shopped on an auction site – eBay springs immediately to mind of course – and
found yourself overbidding on an item in the heat of those last few minutes, just because your
adrenaline is pumping and you really want the item? I know I have. Bidding wars happen in real
estate too, especially in a market that is currently favoring sellers.
While it’s not an ideal situation by any means, in a hot market you may have to fight for the
home you want. But you have to go into the fight with a clear line drawn in the sand as to when
you will have to admit defeat.
Determine, rationally and reasonably, what you REALLY can afford to pay and then do not go
over that, however much it will hurt to walk away and begin your search again. Getting your
dream home is great, but losing it because you got in over your head is not, so common sense has to prevail.
Not Learning From Your Mistakes
In a seller’s market it’s not unusual for a buyer’s offer to be turned down and there’s no shame in
it either. You just pick yourself up and regroup. But what if several offers have been turned
down? Then something is likely wrong. In this case huddle with your Realtor to determine what
this might be. Maybe you are just shopping a little out of your real price range. Maybe the area
you’ve been bidding in is just TOO hot right now. Figure out how to craft a better offer and the
next time the chances of it being accepted will be so much higher!
http://angelicapinto.
