Tag: trulia

Seller’s Market Mistakes

Not Making the Best Offer

When many people see the listing price of a home, they often wonder what they can really get the house for- this is a natural instinct, and it’s understandable, but you’ll need to avoid making a lowball offer in a seller’s market. Many buyers fail to get the home they want in such a market, as with a shortage of inventory and fierce competition, it can be hard to outbid another buyer willing to put their best deal down on the table. Be sure to lead with a strong offer to maximize your chances of getting the home you want.

Over-Analyzing the Purchase Price

Just as buying a home on impulse is risky, over-analyzing a home purchase in a seller’s market is ill-advised as well. If you wait too long to make an offer on the home you want, your risk of losing the home will greatly increase. If you’ve found the type of home you want, in a location you desire, in your price range, that meets your qualifications, don’t wait to make an offer (but be sure to have a preapproval in place and a down payment on hand).

Working with an Inexperienced Agent

If you’re looking for a new home and you find yourself in a seller’s market, you’re going to want to get all the help you can. By having a seasoned agent on your side, you’ll have a better chance of getting the home you want. In most cases, buyers don’t pay real estate agents anyway (sellers usually cover the broker’s fees). Working with a real estate agent will save you a ton of time and stress, as they’ll be able to provide tremendous insight regarding upcoming inventory.

Not Being Prequalified or Preapproved for a Loan

Your ability to be approved for a mortgage loan will be largely based on your steady income, low debt-to-income ratio, and high credit score, but your seller won’t know that unless you first get prequalified by a lender. It’s absolutely paramount to getting the home you want in a competitive market, and not getting prequalified sends a strong message to the seller that you’ll lag on getting your ducks in order and that you aren’t taking the house hunt seriously.

Not Being Prepared for a Bidding War

One of the biggest mistakes a buyer can make in a seller’s market is not being prepared for a bidding war, and it’s understandable- no buyer wants to be involved in such a battle for fear of going over budget. Be sure to set your search below your max budget, so there’s room to spare in case you find yourself in an over-asking bidding war.

Source: Trulia

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Tips For A First Time Home Buyer

Purchasing a first home can be daunting. Here are a few tips that can help make the process a bit easier.

Location. Decide on this first to eliminate “buyers remorse” down the road.  Do the homework and research neighborhoods. School districts, local safety, and crime statistics can affect a home’s value. Even if you have found your “dream home”, the neighborhood could be completely wrong.  Drive through the neighborhood at different times of the day and night and watch the traffic, how are the streets and sidewalks? What are the neighbors like and how do they take care of their homes? Is the home close to places you might frequent (gym, grocery, schools)? Are there children playing safely outside?

Shop Online: Now that you know where you want to buy a home, there are plenty of online options to start the search. Zillow, Trulia, Realtor.com, and any local real estate agency.  Narrow down Realtors that you want to connect with by reading their online reviews, looking at their websites, social media platforms and googling. The Realtor you choose will be the expert you will rely on most. Interview several before settling on one.

Be Frugal: Zero in on homes that are listed for less than the amount of money you have been approved for. Many first time homebuyers don’t calculate the other monthly expenses or problems that go along with homeownership (broken appliances, etc).  Furthermore, other than the down payment, there will be money needed at closing.

Negotiate: This is where having the best Realtor will come in beautifully. Once you make an offer, the seller might come back with a counteroffer and after discussion of the pros and cons with your Realtor, you will know if you should offer more or walk away. Keep your emotions out of the entire process. Too many people pay too much for a home because they have “fallen in love” and this type of emotion can lead to very bad financial decisions.

Do an Exhaustive Inspection: Do the homework and find the very best Home Inspection Company with the top ratings. Be there with the inspector and learn about the home, ask questions – you need to know that the home you are purchasing is structurally sound.  See the good and the bad – what repairs will be needed? Is the electric adequate for today’s use? How are the water pipes, heating, and air conditioning systems?  When the inspection is complete, get a verbal and a written report. Bonus – the company will be available at a later date for more questions.

The Bottom Line: The above tips are just a few important ones to help navigate the process, save money and avoid common mistakes.  Find a Realtor. While it’s easy to go through online homes and narrow down what you want, it’s not so easy to get from that point to the closing. There is the transfer of the deed, title search, negotiating, asking for “extras” that you might be entitled to, completing all paperwork and being the single point of contact with the seller.

 

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