Biggest Mistakes Buyers Make in a Hot Seller’s Market

David- congrats on the feature.   Wouldn't it be nice if there were some kind of balance instead of the feeding frenzy that used to go on when houses were unrealistically high or the "let's see how many houses we can see" market we've had. 

Great post, David. I will add though that agents need to operate with a sense of urgency. I lost a house earlier this spring because my agent couldn't see it for three days from the time I asked about it. And he has delayed a number of other showings as well. (Some might tell me to fire him, but he's good at what he does on a lot of other important levels...not the least of which is his experience in the building field which is very important to me when buying an older home) My point is that I think a lot of agents may still be of the "buyer's market" mentality...it's not a sure thing that it's a seller's market yet in my city, and I think that is part of why my agent isn't in a hurry.

Thanks for a great list, David

Right on for all points made.  Pre qual with buyer agent highly recommended. 

Cannot be repeated enough times.  I may have to stamp this on my forehead, as I seem to have to repeat it every time I go on a showing with clients.

"What about the house we saw last week?"

"Will the owner take 80% of the list price because the grass is dry?"

"I want to think about it, I'll get back to you next week."

"Well, I can pay the full asking price, but I don't want to.  Let's try this low price first.  Yes, I know there are 20 offers on it already, let's just see."

"I don't think it's worth $xxx,xxx even with the pool.  Show me a bigger home for less than $xxx,xxx."

I'm gonna step into a boxing ring with an Olympic medalist, because I know how to take a pounding.

These are absolutely on the money.  The lack of preparation by some buyers really gets me.  They get all hot about a house and then go "We need to be pre-approved?" like it's a big surprise.  Most seem to learn quick though.

Good tips, especially getting pre-qualified!

There are two pieces to this puzzle that I don't think buyers often understand: price and urgency. We review the comparable sales so buyers can have a better understanding of what is a reasonable offer. Then they offer way below market even though we've told them that's not what the market reflects. Many buyers are still listening to the national media rather than take the advice of their local agent. Sometimes it's an uphill battle for us.

Great advice, David.  I just did a blog about buyers buying without an agent.  It can be a nightmare.  All good points well worth checking out.

Isn't it interesting how quickly things changed from buyer's market to seller's market? I hope the shift makes it way to N. Idaho before too many more months.

David - There is so much competition right now that serious buyers really need to act serious if they're going to get their new dream home.

Hi David, great post and great list.  Now if you can get the buyers to listen!

Couldn't agree more with clean offers and since these days are marked by multiple offers it is ever more apparent to make offers clean and straight forward.

thanks David, it sounds like a great plan to get an offer accepted, I would caution not to set them up with too much of a sense of urgency, or they may be paying too much.

These are really great tips.  Clean offers are very important.  Buying a home is hard work.  Waiting till it slows down means waiting till prices go up.

Excellent advice for prospective buyers. Now if we could only find some more inventory.

David,

snooze you lose....  great tips.... be prepared and available

thanks for sharing

Lou

A good clean offer is always more appealing.   The second note is if you find a home you really want you better show some urgency.  I had clients loose two homes last week to accepted offers due to their lack of urgency.  Big sigh here....

You must be serious, quick, prepared and over-ready.  Timely post for me, as the market here in Silver Spring and Takoma Park, Maryland has low inventory and multiple offers everywhere.