Five Common Mistakes Homebuyers Make in a Seller’s Market
- Lowball Offers: One of the biggest mistakes buyers are making these days are sticking with lowball offers. This was common during the lowest points of the housing bust but there has been a resurgence. Buyers and Sellers often have different ideas of what constitutes a ‘lowball offer’.
- “Sleeping on it” too long: The reality of the market right now is that inventory is low. The National Association of Realtors has reported the numbers of homes listed for sale has fallen by more than one-third since the peak in July 2007. Homes that are priced appropriately in desirable neighborhoods can easily go under contract in days or weeks, even hours.
- Too many contingencies in the contract: Avoid unnecessarily long inspection periods and other unnecessary contingencies such requiring the sale to be contingent on a family member touring the property.
- Not attempting any personal impression on the seller: It’s very likely the seller will have 2 semi equal bids on their home. Sometimes submitting a personal letter with the contract that describes parts of the home you like and why buying the home is important to you can warm the seller up a bit. This makes you more than just another number to them.
- Failing to get preapproved for a mortgage before starting the search: Mortgages aren’t easy to get anymore. Standards are much more strict and the process can take weeks or even longer. It’s important to know exactly what you can afford and receiving a commitment for a specific mortgage from a lender is a crucial step in the home buying process.
More on these mistakes at Philly.com’s Mistakes homebuyers make in a seller’s market.
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