Top 5 Buyer Mistakes in Owensboro, KY

By
Real Estate Agent with Real Living / Home Realty 29202

Karen Pannell, Owensboro, KY real estateTop 5 Buyer Mistakes in Owensboro, KY

 1.      Basing your offer on the listed price.

 Some buyers always offer 10% less than the listed price.  What if the property is listed for $150,000 and is overpriced by $20,000?  Even if you offer 10% less / $135,000, you will still be paying $5000 too much.  Many times I have heard buyers brag that they bought a home for $20,000 less than the original list price.  The truth is, the house was overpriced by $20,000 from the beginning or it would have sold already.  To protect you, I will provide information on recent sales in the area so you will know you are getting the best value. 

 

 
2.     Making A Ridiculously Low Offer

Contrary to what you see on TV and read on the internet, most sellers have not just fallen off a banana truck – they know what their house is worth – even if they overprice it initially.  Like you are wishing for a stupid seller, they too are wishing for a stupid buyer.  Writing low offers insults the seller and wastes everyone’s time.  You also run the risk of another buyer stepping in and buying the house while you are in the midst of negotiations with the seller.  Even if the seller counter offers to you, they can withdraw their offer at any time until written acceptance.Owensboro, KY real estate

 
3.     Not Giving Enough Earnest Money

Earnest money shows you are “earnest” or serious about the offer you are making.  When your earnest money is low, it waves a red flag to the seller.  They may counter offer and request a larger deposit, but once again you also run the risk of another buyer stepping in and buying the house while you are in the midst of negotiations.  If there is an unusual circumstance for giving a low earnest money deposit, an explanation should be communicated to the seller when your offer is presented.

 

4.      Owensboro, KY real estateNot Getting A Home Inspection

 The appraisal that the bank does IS NOT a home inspection!  Home inspections are performed by licensed home inspectors, not appraisers.  Home inspectors find all the things that our untrained eyes miss.   This could save you thousands of dollars in repairs later.  This is a must for all home buyers. 

 
 5.      Not Buying Owner’s Title Insurance

 Many buyers mistakenly believe that the title insurance the bank requires them to buy (lenders title insurance) will also protect them.  THIS IS NOT TRUE!  Buyers should also buy OWNERS title insurance.  An owner's policy protects your interest in the property against such hidden defects as:  mistakes in recording of legal documents, forged deeds, releases, or wills; undisclosed or missing heirs, liens for unpaid taxes, fraud and other claims that could prevent you from selling your home in the future.  This is a fee that can be included in your closing costs and is well worth the investment. 

 
If you are ready to start your home search, please consider me your resource for Owensboro, KY real estate.  I have the experience to help guide you through the home buying process – contract to closing.  Call or text me at 270-903-2167

 

 ©Karen Pannell – All Rights Reserved

 

 

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Topic:
ActiveRain Community
Location:
Kentucky Daviess County Owensboro
Groups:
Realtors®
Real Living
Real Living Home Realty
Tags:
ky
how to buy a house in owensboro

Post a Comment
Spam prevention
Spam prevention
Show All Comments
Rainmaker
735,830
Pete Xavier
Investments to Luxury - Pacific Palisades, CA
Outstanding Agent Referrals-Nationwide

Love when buyers don't want to pay one penny over list.

Home could be realistically worth 400k but listed at 350k.

I plan to do an instruction book on value and smart bidding complete with pretty pictures.

 

Nov 27, 2012 09:34 AM #5
Rainmaker
206,420
Chuck Mixon
The Keyes Company - Cutler Bay, FL
Cutler Bay Specialist, GRI, CDPE, BPOR

All very good advice. The best one and hardest to sell to a buyer is the Title Insurance, they just don't understand what they are insuring, The biggest invest they make of their life most of the time.

Nov 27, 2012 09:35 AM #6
Rainmaker
1,549,813
Mike Cooper, GRI
Cornerstone Business Group Inc - Winchester, VA
Your Neighborhood Real Estate Sales Pro

That's a good list, Karen.  The first one could definitely get an inexperienced buyer in trouble right away.  Lowballers are plentiful around these parts too.  Good advice.

Nov 27, 2012 10:12 AM #9
Rainer
6,962
Tark Ells
Terelicte Real Estate - Adrian, OR
Thanks for the great list provided. I am going to follow your advice.
Nov 27, 2012 10:47 AM #10
Rainmaker
251,250
Joel Weihe
Realty World Alliance - Wichita, KS
Helping you to use your VA home loan benefits

Plenty of the low ballers around here to. We try and explain it's just not that market anymore but they see it on TV and, well.....someone else puts in ta real offer and they lose it. Sometimes more the dimmer ones it takes a few.

Nov 27, 2012 11:03 AM #11
Rainmaker
1,317,551
Joan Whitebook
BHG The Masiello Group - Nashua, NH
Consumer Focused Real Estate Services

I think you have hit the nail on the head.  Unfortuanately, as the market starts to change so will the buyer's mistakes.

Nov 27, 2012 11:56 AM #12
Ambassador
4,300,186
Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

Karen, the most important one - I can add to this list is...

Working with a professional Real Estate Agent...

Nov 27, 2012 01:05 PM #13
Rainmaker
318,971
Tamara Inzunza
RE/MAX Executives - Alexandria, VA
Close-In Alexandria and Arlington Living

I would also add, #-1, not getting approved for your mortgage before starting the process.  All great points to consider, especially with the usual holiday demand of buyers simmering until January.

Nov 27, 2012 01:20 PM #14
Rainmaker
1,068,217
John G. Johnston
John G. Johnston & Associates, LLC - Westcliffe, CO
An Exclusive Buyer's Agent ~ Westcliffe, CO

Karen   Great post and thanks for sharing this list that will apply anywhere.  I've got a couple of investors that always make a low...low offer.  Generally, they lose but once in a while the low offer wins.  That keeps me working for them.  If they were regulars buyers I would be offended by their low offers...but, they are investors.  All 5 are good points.

Nov 27, 2012 01:58 PM #15
Rainer
64,045
Eric Salonga
The Salonga Brothers at Reed Realty - Ceres, CA
Your Key to the Central Valley
Great advice, thanks for sharing.
Nov 27, 2012 02:38 PM #16
Rainmaker
739,179
Ed & Tracy Oliva
West USA Realty - Arizona - Fountain Hills, AZ
The Oliva Team Arizona Agents

Karen:  This is some advice for all of us,  keep up the good work and good luck with your business, E

Nov 27, 2012 06:19 PM #17
Rainmaker
1,303,448
Wayne and Jean Marie Zuhl
Samsel & Associates - Clark, NJ
The Last Names You'll Ever Need in Real Estate

Good morning Karen - Buyers who make mistake #1 or mistake #2 are either working with an inexperienced agent or think they know more than the agent. There's no quicker way to lose a deal than to make these mistakes! Great post!

Nov 27, 2012 07:27 PM #18
Rainer
137,484
Aaron Smith
Keller Williams Advisors - Edgewood, KY
Northern Kentucky Agent & Investor

Great points Karen. Loved the comment about sellers falling off a banana truck.

Nov 27, 2012 08:24 PM #20
Rainmaker
4,432,217
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

These are good tips for buyers. I hope they will read your post.

Nov 27, 2012 08:27 PM #21
Rainmaker
1,116,027
Paula McDonald
Beam & Branch Realty - Granbury, TX
Granbury, TX 936-203-0279
Great tips for sure and I must concur with Praful above on working with a good real estate agent.
Nov 27, 2012 08:43 PM #22
Rainmaker
2,454,744
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

Not wise to base what we do exclusively on money...It is only part of the equation. If someone really finds the must have home, they should move with a purpose and get it....Getting satisfaction at these price levels to me is the primary purpose

Nov 27, 2012 09:13 PM #24
Ambassador
1,207,209
Amanda Christiansen
Christiansen Group Realty (260)704-0843 - Fort Wayne, IN
Christiansen Group Realty

Great info here.  Ridiculously low offers don't work anymore.  They just don't.                                                                    

Nov 27, 2012 09:58 PM #25
Rainmaker
1,375,917
Michael Setunsky
Woodbridge, VA
Your Commercial Real Estate Link to Northern VA

Karen, five excellent points buyers often mistakenly make. Number one makes the buyer feel good even if they know they paid too much.

Nov 27, 2012 10:07 PM #26
Rainmaker
131,333
Karen Pannell
Real Living / Home Realty - Owensboro, KY
Owensboro KY Real Estate -270-903-2167 Homes, Cond

Thanks to everyone for all their great comments!  Definitely need to add about the pre-qual at the bank.  Interesting to hear that many others are fielding lowball offers as well.

Nov 28, 2012 08:04 AM #27
Rainmaker
686,659
Hella Mitschke Rothwell
(831) 626-4000 - Honolulu, HI
Hawaii & California Real Estate Broker

Karen: Low ball offers are still offers and I always suggest to my seller to counter, not ignore it. We've come to several contracts somewhere in the middle.

Nov 28, 2012 11:40 AM #28
Post a Comment
Spam prevention
Show All Comments

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?

Rainmaker
131,333

Karen Pannell

Owensboro KY Real Estate -270-903-2167 Homes, Cond
Receive email updates on homes for sale in the Owensboro area
*
*
*
*
Spam prevention