Phoebe: You have written other blog posts with titles like "The 5 most important things that Home Buyers Should Think About" etc......but what do you think is the MOST IMPORTANT quality I should possess, entering the home buying adventure?
Steve: Patience, Phoebe, Patience. When starting on the home buying journey in our market the most important thing a buyer must possess is patience...
....backed by wisdom and insight. (sorry I had to add those)
Because the current market in our area offers relatively low prices, (relative to the 2006...the local peak) historically low interest rates(4.5% at this writing) and great opportunities, there are many other competing buyers looking for great deals, too.
Phoebe: All we see on the news is how bad things are, but my friend Kevin has made 5 offers on properties and has lost them all. What gives?
Steve: Often, well-priced properties in great condition receive multiple offers and sell above list price. It may be hard to believe given the very negative news that we all hear about real estate.
But please remember, almost all the news we hear is talking about the OVERALL NATIONAL MARKET. The only thing that matters to you is what is happening HERE...all real estate is LOCAL. Since early spring, our market has become extremely competitive especially in the first time home buyer price range.
Our inventory is a third less than what it was last year and the number of days that properties stay on the market is also down by half.
It has become the norm in the last 6 months for a buyer to make several offers on different properties before they get an acceptance. Buyer patience in today's challenging market is critical.
Phoebe: I only asked for the Most important thing then you went and tacked on wisdom and insight. What's with that?
Steve: Phoebe, patience is important but once you understand market conditions, you must have the wisdom and insight to make a winning offer. It is not wise to let the perfect house go by because you failed to squeeze the last few bucks out of Mr. Seller. Even investors don't do that, and they are not going to live in the place.
Of course, it's a given that you should be working with an experienced and knowledgeable agent who can navigate the current minefields of buying a home....whether it is a normal sale, short sale or a bank owned foreclosure.
If you have a professional real estate agent working for you, you must be willing to listen to her guidance, advice and recommendations.
Buyers that want to go their own way, often end up becoming the most frustrated....wondering why their offers are not getting accepted. The market is continually changing.....
An experienced agent knows how to analyze the current situation, perform a detailed pricing analysis on the home you wish to pursue and he will help you write offers that have the best chance of getting accepted, yet protect your interests.
Be patient, work closely with your agent, and understand that you may have to write a number of offers before you get the home you want.
Patience pays dividends. Don't be in a rush, but don't be stubborn and let a gem slip away. Do your homework, be at PEACE and try to enjoy the process.