If you’re new to home buying or have not been in the housing market for many years, it can be easy to make some mistakes as a buyer in a competitive market. Qualified, experienced agents like ours at Barrett Sotheby’s International Realty can make your homeownership dreams a reality. Together, we help you navigate the steps to buying a home in a market where supply can’t keep up with demand. Here are five home buyer mistakes to avoid in the current market.
Waiting for Prices to Come Down
Despite warnings that the housing market was about to collapse during the early months of this year, house prices have held steady in the towns and suburbs along the Patriot’s Trail. So if you think you can save yourself some money by waiting for house prices to drop, think again. It’s more likely that you’ll miss the opportunity to buy a home before more buyers enter the market in the fall and competition steps up again.
Not Getting Pre-Approved for a Loan
Pre-approval for a loan is the gateway to owning your own home with the help of lenders, but some prospective homeowners fail to check this off the list. While it’s important to note that getting pre-qualified is the first step toward securing a loan, being pre-approved means that the lender is ready and willing to offer you the amount they agreed to during your pre-qualification phase. Completing the pre-approval process and securing these funds means you act more quickly and can give your offer the edge over others.
Failing to Stick to a Budget
With fewer homes on the market, when you find a home you like it can be tempting to throw your budget out of the window. The risk of losing out on a home you really want could lead you into a bidding war with other buyers and then getting cold feet as the deal goes through – resulting in lost deposits – or worse, buyer’s remorse when you own the property. The situation is made even trickier because low-ball offers in a competitive market can easily cause you to be outbid. When it comes to making an offer, trusting your agent to help you choose the most reasonable offer and navigate the bidding process is essential.
Hesitating to Make a Decision
When you fail to make decisions quickly in a competitive market it often spells disappointment. It is still crucial to make a fair offer and to conduct all inspections and appraisals as you would in a more normal market, but indecision when it comes to selecting a home and other stages of the process can mean that you don’t get the home of your dreams. Some home buyers may believe that they have time to wait for something better to come along or to get more information about the home or neighborhood. Making an informed decision is certainly a positive thing, but if you have fallen in love with a home while the market is hot then it can be detrimental to hold off on making an offer. It also kicks off the process and gives you time to find out everything you need to know about the home while you wait to go under contract.
Going it Alone
A buyer’s agent is critical to success in a competitive market. Selecting an experienced and knowledgeable realtor who acts in your best interest can make all the difference when searching for a home. Realtors that are unfamiliar with the area, who are inexperienced in negotiating, or even the few who just want to make a quick buck will not be able to get you the best deal or make sure you’re taken care of in the process. Professional, qualified agents like ours know the ins and outs—and ups and downs—of the home buying process, which will save you time and money. For more information, our blog on why you need a buyers agent walks you through what to look for and what to expect from someone helping you find your next home.
If you’re thinking about buying a home in the Greater Boston area, Barrett Sotheby’s International Realty can help you navigate the current market and secure the home you want. Contact us today to find out more!
