Don’t listen to that Realtor!
They are just out for the money!
So here you are, all excited and full of anxiety about purchasing your first new home. You meet up with a few different Realtors along your trek of open house exploring and you find one that you “click” with so you decide to start working with them. They are going to help you find the right home because they listen to YOU and have made effective notes about what is IMPORTANT to YOU!
Cool! Sounds like you are off to a great start! You are out there looking at homes that match your criteria and things are going pretty good. All of a sudden you see the house that is just the most perfect place you have visited! It “feels like home!” You gotta have this place! You turn to your Realtor and say, “We have to make an offer on this one today!” Your Realtor makes an appointment to meet you back at their office to write the purchase contract.
You are jazzed now so you call your favorite Uncle and ask him to come along. He is a pretty smart guy after all and he has bought several homes in the area over many decades. He will really look at for you, so he is your additional “safety net.” Well, this is a mistake and let me tell you why…
Our market changes constantly! Buying a home is a complex matter and laws have changed over time, lending guidelines have changed over time, and the market we are in is a new and different animal altogether. Only a trained professional Realtor is going to know how to construct an offer that will possibly win you the home. I say possibly because in our current market in the greater Los Angeles area of Real Estate, we are seeing multiple offers on homes and they sell for OVER asking price.
Your Uncle listens intently as your Realtor goes over the comparables and suggests an amount to offer on the home. Your Uncle’s face contorts and he says, “No way!” That is like $2,000 more than the seller is even asking for! We want to bid $5,000 less. Then he turns to you and says, “Don’t listen to that Realtor! They are just after the money! They are just trying to close a sale! They don’t really care about YOU!”
Wrong! As your Realtor there is a duty of utmost care that must be upheld! We have a fiduciary duty to our clients. We know the market and we know approximately what a home will sell for based on comparables in the last 60 days. The question you need to ask yourself is, “How much do I want this home?” Keep in mind while your Uncle may love you and want to help you to save money, he may stop you from purchasing your dream home!
Trust your Realtor and remember that a home will not sell for more than it is worth especially in today’s market! Lending guidelines are so strict and the crack down on appraisers is so fierce that if the home doesn’t appraise, it will have to be renegotiated in order to get a loan! The bank will never get in over their heads now. So rest assured that even if you do over bid for a home, if it doesn’t appraise, you won’t pay that price and you may get it for the $5,000 less than asking just like your Uncle hoped!