The real estate market often fluctuates, so planning for mistakes in advance is smart. It’s tough to predict whether the market will favor buyers or sellers when it’s your turn to buy.
If it’s a seller’s market like the one we are seeing right now, buyers can get what they want. However, they need to bring their A-game and be decisive in order to do so. Here are six common mistakes we see in a seller’s market like this and how you can avoid them:
1. Not making your best offer up front. The motivation to buy for as little money as possible is deeply ingrained in us. When buyers see a high list price, they naturally wonder if they can get a better deal. Offering less than asking price is a reasonable strategy in a buyer’s market, but it doesn’t work quite as well when there is a shortage of inventory. In fact, it doesn’t work at all. Competition is fierce, so come in with a strong opening offer if you really want to get the home.
2. Overanalyzing the purchase price. This is ill-advised because the longer you take to make an offer, the higher the risk of losing the home you want. Once you’ve determined the type of home you want, the location you desire, and the right price range, don’t wait to make an offer. Be prepared to move quickly by having your finances in order and being pre-approved.
3. Work with an experienced agent. A lot of people make the mistake of not doing this, and it costs them. If you have a seasoned agent on your side, they will give you a better chance of getting the home you want. In Texas, sellers pay the commissions for their agent as well as yours, so it costs you nothing out-of-pocket to have an experienced professional advising you on the best course of action to take.
5. Not being prepared for a bidding war. No buyers want to be involved in bidding wars, but they are inevitable in this kind of market. Start your search below your maximum budget so you have room to up your offer.
6. Not learning from your mistakes. It’s easy to get frustrated by repeatedly declined offers. Learn from prior offers and transactions so you can move into your dream home.
If you have any questions for us or you’re interested in buying or selling a home in San Antonio, give us a call or send us an email. We would love to hear from you.