Special offer

Dear Home Buyer....why aren't you in escrow yet?

By
Real Estate Agent with Alain Pinel BRE 01367196

Dear Home Buyer

Are you frustrated because after months of searching, you still don't have a home to call your own?

There are many reasons why you're still looking to buy instead of moving in your new place.

Let's review your situation....

  • Did you get preapproved first before your started looking at houses? If not, how will you know how much you can afford to buy?  And how will you know what properties to look at within your budget range?

 

  • Are you looking online for foreclosures only to find out that the properties you're seeing aren't really for sale (yet), and most especially NOT at the prices you see?  Sometimes, online information may confuse rather than help you. You should be selective about the online services you frequent.

 

  • Do you ride around, looking at open houses?
    • First of all, the open house directional signs may lead to properties you don't really want.
    • And secondly, the open houses are a mere fraction of what's available.

  • Do you call each listing agent of each property you like? A listing agent represents the seller. As a buyer you should have your own agent to represent YOUR best interests

  • Have you engaged a realtor as a buyer's agent to help you? If not, why not? A realtor can help you pinpoint areas and identify properties that are suitable for your needs and within your budget,.

  • Do you listen to your co-workers and other associates who haven't bought property recently? Since realtors are the most attuned to the local market conditions, we are well-versed with what it will take to write a successful offer. For example, I had a client whose co-workers told him to submit offers at 10% LESS than list price. Where on earth did that come from, and what is the reasoning behind it? Some properties are listed artificially low to begin with to attract attention. Some properties will also attract multiple offers. So writing a low ball offer will fail.

  • Do you listen to your realtor when you are strategizing on writing offers, especially in multiple offer situations? You may only get one chance to write  your best and highest offer. Highest offer doesn't always get the property; often times, terms and conditions are bigger factors in the seller's decision-making. For example, if the seller says he needs a quick close, and you write an offer with a 60-day escrow period, what are the chances that the seller will even look at your offer?

  • Do you only look for properties on weekends? Now that the home buyer tax credits are expiring, buyers are scrambling to meet the April 30 deadline. They are constantly looking, and even writing offers sight unseen as long as they have pertinent information in hand. What are you doing?

  • Are your expectations realistic? Yes, we know you'd like a new house with a minimum of 3 bedrooms, 2 baths, 2 car garage in a great neighborhood. But is such a property available that is within your budget range?

  • Did you have an offer accepted already, but then you backed out because the seller didn't want to give you credits for certain repairs you asked for, or didn't want to pay for your closing costs? Were your requests reasonable?

  • Or did you back out of contract because your friends, associates told you that this will require a lot of work, or you're paying too much, etc.....and you listened to them instead of consulting with your realtor about comparables, or getting inspections to determine actual cost of repairs?

  • Do you consistently write offers BELOW list price even when there is ample information that shows the properties are listed at fair market value?


So....what's your situation? Why aren't you in contract yet?

Comments (7)

Brian & Marie Spray
www.DFWAreaRealtors.com - Action Realty Group - Frisco, TX
Frisco TX Realtors

Pacita - some very good points here!  We've worked with a few first timers recently who were doing some of the very things you mention - wanting to low ball, un realistic demands etc.  Sometimes they will only learn the hard way that they should have listened to us! - reblogging!

Apr 20, 2010 08:41 AM
Pacita Dimacali
Alain Pinel - Oakland, CA
Alameda/Contra Costa Counties CA

Dear Brian and Marie

I've had clients that have done ALL of these things....

>SIGH<

Apr 20, 2010 08:48 AM
Wanda Kubat-Nerdin - Wanda Can!
Red Rock Real Estate (435) 632-9374 - St. George, UT
St. George Utah Area Residential Sales Agent

Those are issues that many buyers face but finding a knowledgeable LOCAL agent can help to resolve their home search woes. Thanks for a well written post Pacita!

Apr 20, 2010 09:57 AM
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

The buyer who goes it alone is wasting a lot of time and may be missing out on the home of their dreams!

Apr 20, 2010 12:56 PM
Robert L. Brown
www.mrbrownsellsgr.com - Grand Rapids, MI
Grand Rapids Real Estate Bellabay Realty, West Mic

I have a couple of these people right now. But we will make it.

Apr 20, 2010 01:07 PM
Cameron Wilson
Labrum Real Estate - Murrieta, CA
The Short Guy - Murrieta,Temecula,Menifee Californ

You have made some very good points but I must say the buyer who writes an offer site unseen is a fool. I list many REOs and I always ask the agent if the buyer has seen the property. It's the agents reputation on the line if the buyers offer gets accepted and they take a hike.

As you stated buyers need a good local Realtor to narrow their search down and listen to the agent and the agent only.

Apr 20, 2010 01:48 PM
Lori Churchill Cofer
Beasley Realty - Pullman, WA
Realtor - 509-330-0086 - Pullman, WA

Pacita,

Some very viable points here....I especially find it damaging to the cient to call listing agent after listing agent....to much information out there...

Apr 20, 2010 04:47 PM