Buying a house is a big decision, and it's not always easy. But with the right information, you can make the process easier and avoid any buyer's remorse.
Most buyers are finding out the hard way right now is just how competitive real estate markets are around the country. A few years ago, finding a home and making an acceptable offer was a piece of cake.
You would jump on one of the best real estate websites, find a home you like and and make an offer that was likely to be accepted.
In today's real estate landscape that is no longer the case. There is some serious competition out there to land your dream home. Home buyer burnout has become commonplace.
Buyers are constantly faced with the prospect of being in the next bidding war. They are often outbid by tens of thousands of dollars even though they have gone way over the asking price themselves.
Constantly losing out on home offers can become very frustrating. Real Estate agents constantly submitting offers and losing feel this pain too.
Buyers Are Doing Unusual Things in Their Offers
Not only that but the competition is doing some crazy things like removing home inspection contingencies or offering cash. Yes, removing a financing contingency has become commonplace even though there is a significant risk.
The same can be said for removing the home inspection contingency. Many buyers just don't care - they want a home and will do anything to get it.
Low inventory and significant buyer demand have been a boon for home sellers. So what's a buyer to do? How can they manage the process without feeling like giving up?
Let's look at a few tips to avoid home buyer burnout.
Continue to Prepare For The Home Buying Process
Unfortunately, you have no control over what the local real estate market does or doesn't do. You need to keep a stiff upper lip and keep moving forward. You're not the only one facing home buyer frustration.
When you can't find a house to buy, it can be truly overwhelming, especially when you've been going at it for a while.
Eventually, the luck of the draw will move in your favor. Finding the right property will eventually come and you will be the one who has the best offer.
You may need to consider doing some of your competition's things. Maybe you've found a home that clearly has been well maintained by the current owner. It is readily apparent there is a pride of ownership.
Could it be worth stepping outside of your comfort zone and waiving the home inspection? Only you can decide but many buyers have discovered this is their meal ticket to being put on top of the offer pile.
Work With an Exceptional Buyer's Agent
Are you finding properties you love quickly or do you find yourself always a day late and a dollar short? One of the more essential functions of a buyer's agent is to make sure there is an excellent line of communication.
Some buyer's agents are dialed in and hear about homes coming on the market before they hit the multiple listing service.
Getting connected with a savvy buyer's agent might even lead to finding an off-market property. You could get lucky and end up purchasing a home that doesn't get listed for sale.
Make a Great Offer But One Slightly Less Risky
If you've submitted quite a few offers and lost out on homes you love, you've likely been up against cash buyers. A cash sale is really hard to beat because it takes a significant risk away from the seller.
There is great comfort in knowing the buyer doesn't need to get financing. One of the problems with the current hot real estate market is that some homes are not appraising.
The appraiser who has been assigned by the bank to value the property says the property isn't worth what the buyer is paying. When that happens the sale can easily fall through.
What home seller wants that? No hands are going up in the room! One way around this potential issue is to offer the seller an appraisal gap guarantee. What an appraisal gap clause says is that you will agree to make up any shortfall of the appraisal vs. the sale price.
For example, if you are buying a $600,000 dollar home and the appraisal comes in at $575,000, you would need to increase your down payment to satisfy the lender.
While an appraisal gap clause isn't the same as paying cash, it removes a significant worry from the seller and their agent. You can also waive the appraisal contingency completely as well.
Don't Overpay For a Home
The current home buying environment is much like a real estate auction. It is crucial not to get too caught up and make poor business decisions. You need to maintain your cool and not overbid for a house you don't really love.
Desperation often leads to poor business decisions. If you've found an excellent buyer's agent, you can trust and listen to their advice. A great agent will tell you when it is time to back off.
Stay The Course and Move Quickly When Necessary
Sometimes being successful is all about continuing to do what you have been doing. Staying the course isn't necessarily a bad thing. Have you been in second place with your offers?
If so, there is a good chance you're eventually going to be the winner. If on the other hand, you're not even in the ballpark, a reassessment could be in order.
This market dictates quick decisions. Buyers cant wait until the for-sale sign has been in the yard for days. It is vital to be on the same page with your agent and move fast to make a bid. Most buyers will be writing an offer with their agent the moment they leave a home.
Purchasing a home is a significant decision, and it's not always straightforward. When armed with the best information, the process will be easier and you'll likely avoid any buyer's remorse.
By following these tips, you'll be able to buy your dream home without getting burned out.
Keep plugging away and best of luck!