No matter what the condition of the market is, giving an offer is very tricky for several reasons. Without any proper guidance or information, a buyer may have their offer accepted but lose a lot of money in the process. Here are 5 things not to do when house hunting and finding that dream home:
1. Waiting too long for the price, or mortgage rates to go down
One thing that we can learn from the previous year is that the market can go on a different path because of several various reasons. But now that the market is slowly becoming steady, expert economists are able to give a sense of assurance to where the market is going.
For example, real estate experts agree that mortgage rates going an all-time low has come to an end. The rates this year will slowly return to usual.
As for the price, look at it in this way. If you like it, there are also several others who are considering to buy. What you need is to do is decide and get a real estate expert who’ll guide you through the process.
2. Backing out on a house you love because of the opinion of one of your friends or family members
Of course, the opinion of the people in your circle will matter, especially if you’ll be inviting them to your new home BUT their opinion should not be the strongest factor. Do you know who’s opinion matters the most? YOURS! Oftentimes there would be a “this is it” moment for homebuyers, so if that comes, despite what others would say, go for it. It is you who will live there, not them!
3. Basing your offer on price estimate on sites
We see this a lot. Price estimates of homes are surely lower than its listing price in the market. There are several reasons for that. First, estimates are based only on the publicly available data. They do not include the current condition of the house, the upgrades that were made, and factors that contribute to the appreciation of the property. When these factors come into play, the price of the house will surely rise.
4. Focusing on the teeny-tiny details
Yes, small details are often what make a house a home. But failing to look at the bigger picture and fixating on that paint color you don’t like or the chandelier that is not your taste, or whatever small detail that doesn’t fit your style is a big mistake. You must remember that after buying a house, you have all the freedom to change those details and make them your own. Look at the house as a whole, the neighborhood, its location, and the facilities instead, and then decide.
5. Not making an offer at all because you heard about the other bids
Ever heard of the saying, “Better to have love and lost, than not to have loved at all”? Well, it goes the same with making an offer. How will you know if your offer will get accepted or not if you don’t even try just because there are other bids already? It’s just natural for a great listing to receive several offers and quitting the game too early can be the biggest regret you might have when it comes to the bidding war.
Being in the bidding war might be frustrating especially for first time homebuyers that is why it is crucial to have someone who has your back who’s been in the industry for years.
For more information about the current market, check out why 2021 is a far cry from the housing bubble in the past decade.
Do you have a trusted realtor who you are working with? If not, call us at 925-415-0835!