5 Mistakes Buyers Make in a Hot Housing Market
Anyone who has ever shopped around for a home knows how competitive a seller’s market can be. A beginner might think that a market with many homes for sale gives you better odds of landing one with a decent price, but you’d be surprised. Don’t let the prospect of competition deter you from fully committing to this process. There are few purchases in your lifetime that will be more important than your home, so it’s necessary to navigate the market using some insider tips to your advantage. Here are the top 5 mistakes to avoid when you’re looking to buy in a hot housing market:
Acting Out Of Desperation: It’s understandable to feel a sense of urgency when shopping for a home, but that should never drive you to making desperate decisions. The last thing you want to be in a seller’s market is to be impulsive. Sometimes when people have been looking at houses for a couple months, fatigue starts to set in and the desire to have the process complete and done with can come creeping in. But remember, you’re doing this to find a home you love. So don’t settle for less than that.
Hesitation: When you find a house you love, your safest bet is to have a direct, clear path to making your best possible offer. To do this, you should make sure all your paperwork and loan approvals haven’t expired and are ready to go. Any hesitation on your part could mean somebody else makes an appealing offer before you’re able to.
Overpaying: In a seller’s market, many homes will result in a bidding war. If you’ve been looking at houses for a while and been engaged in multiple bidding wars before, it can be tempting to overpay out of fear of losing another bidding war. But remember what your budgetary restrictions are and adhere to them 100% to avoid being in trouble down the road.
Not Being “Ready”: When the market is hot, you need to be ready at any time. This means looking at homes the very first day they come on the market. If you’re interested, you might even be able to make an offer that day and buy it before there’s any competition. In real estate, the early bird usually always gets the worm.
Expecting A “Great Deal”: When the market is hot, you’re unlikely to find any “great deals”. The fact is that there’s too much interest and demand for great deals to slip through the cracks during these periods of time. If your goal is to find a great deal during a hot market, you may be waiting a very long time.