Buyers: misconceptions will cost you!
By Vicki Aubry, Realtor, ABR, SRES
Misconceptions about the market keep buyers from getting the house they want time and time again! How is this possible you ask?
1. “I will hunt for a house until I find the perfect one!
I must have showed a couple over 200 houses a few years ago… and in the end, the house they purchased was the same floor plan I had showed them over and over again, only with the change in the market over all that time it was about 300 square feet smaller than the first ones they had seen. I truly believe they had exhausted themselves in the process to unearth a home like no other.
2. “The longer the house is on the market, the more willing the seller will be to negotiate.”
Well, yes and no… If the listing agent has done their job a home that is well priced should not need to be price changed and should sell in a reasonable timeframe. Buyers should have their agent do a market analysis on a home they are interested in and from that write up a reasonable offer with their buyer’s agent to present to the seller. Some homes have no had price changes because they are priced right and waiting to attract a buyer that realizes this.
3. “I’ll get a better price if I buy a short sale or foreclosure.”
Banks have their own agenda and seemingly, a lot of time to wait until they get the price they want. They are in no hurry to respond to buyers that are submitting lowball offers and will wait until they get one they like. They will not negotiate home inspection items, so unless you are a contractor knowing what you are getting into you may be buying a house with some nasty surprises. Often even bank owned and short sale properties do not sell for much less than what they should sell for if they had not been bank owned or sold on a short sale.
Two condos in Shrewsbury recently sold only $ 2,500 apart, but the higher one had a finished basement and the short sale didn’t…who got the better deal in the end???
4. “I’ll bring my family along for their opinion.”
Well, you know what opinions are like, right? The agent’s opinion will be based on facts about the property, other homes they have seen in the area and many years of experience. Would you be willing to forego buying a home you liked because your family thinks “you can do better” based on the few they have seen?
5. “I’m in no hurry…I’ll wait.”
Yes, you can, but don’t be surprised if it will cost you more next year to buy the same house, or if it takes you out of the market entirely because it could. Many changes are taking place in the lending arena some driven by legislation and some driven by the secondary market. Closing costs have increased and may continue to do so, as have minimum credit scores. And, rents are increasing rapidly.
Seriously, with mortgage rates at about 3.5% for a 30-year fixed and current pricing on homes the time is now! Call me; I’d love to help you out (or in)!
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