Top 5 Mistakes Buyers Make in Today’s Real Estate Market

1. Not Understanding the Different Aspects of a Negotiation Strategy

Price is only 1 component of an offer. It is a very important part of an offer, but if it doesn't align with the goals the seller is trying to accomplish, it is irrelevant. For example, if I wrote an offer with a price WELL above the competition, but wanted to close in 2025, that may not work with the seller's timeline. Other components up for negotiation include earnest money, closing cost credit(s), closing date, finance terms, “as is” condition, waiving a home inspection (yes, they are different), home sale contingencies, appraisal gap coverage, and the list goes on. Every situation is unique, so it’s so important to have an educated Realtor? representing you to ask the right questions and find out what the seller’s “perfect offer” looks like. From there, they can help you put together an offer that aligns with both party’s goals while still working in your best interest.

2. Waiting too Long to See a New Listing

I like to say “The good ones go fast”. REALLY fast. If there is a listing that catches your eye, it likely catches the attention of other motivated buyers, too. While being the first one in doesn't always guarantee the seller will take your offer right away, it certainly cannot hurt you. We’ve seen too many people wait until the weekend for an open house just for the home to go under contract the night before. Get in there ASAP to avoid losing on a technicality.?

3. Not making an Offer on a Home they Feel is Overpriced

These situations are often the best chances to get a good deal in a competitive market. If there is a listing that has been sitting on the market because it's priced too high, you are (hopefully) not in competition with other buyers. Other buyers may have looked at that home but dismissed it because of the high price thinking the seller would not consider an offer below list. Now, if you submit an offer, the seller only has 1 buyer to work with. This gives you much more leverage in negotiations. At the very least, present an offer that reflects the value YOU have assigned to the property. The worst thing they can do is say no. If you can't come to agreement just continue your search. You'll never know unless you shoot your shot.?

4. Waiting for Prices/Interest Rates to Come Down

A great quote from billionaire investment analyst Ken Fisher says, “Time in the market beats timing the market.” It's impossible to know what the housing market will do in the coming years. However, it has a very reliable trend of appreciation over time. The bottom line is, lock in your purchase price now! The price you pay will remain constant for the entire time you own your home. As far as interest rates go, Ken’s advice also applies. One of three things will happen. Rates will go up after you purchase, and that's great! You locked in a lower interest rate for 15/30 years. Rates go down after you purchase, that's also great! You can refinance your loan to the lower rate, AND keep the price you paid. If rates stay the same, you will continue to have the same monthly payment, and yet your asset will have already realized some appreciation.

5. Working with the Wrong Agent?

Your agent’s understanding of current market dynamics can make or break your purchase. If you can't find a home that meets your needs, an experienced agent will know who to call to see if any similar homes are coming to the market soon. This can get your foot in the door before other buyers and can even eliminate a competitive situation if you're able to secure a home before it hits the market. You need someone who not only knows the area well but knows who the other top listing agents are in each area. The right agent has a strong network of service providers including but not limited to attorneys, lenders, home inspectors, contractors, other agents, etc. THE most important thing is an agent who truly listens to you and keeps your best interest at heart.?

To determine the right strategy for your next real estate transaction, you need to have the right real estate expert in your corner. Give me a call today for more info on this, and everything else real estate!