We want to talk about something going on right now in the spring market, which is generally the busiest time of the year in real estate.
Often, first time home buyers make a big mistake when looking during a busy season.
Buyers will go out on showings and become interested in a house. But, many have been taught that you should never pay list price for the home.So what do you do? Make a low ball offer. For example, you’re looking at a house for $200,000 and you go in at 160,000 or 170,000. But with the market as hot as it is, and it’s still a seller’s market right now, this is a mistake.
Instead of coming back and negotiating a deal with you, many sellers won’t even consider a low-ball offer in a hot market. They will simply say no and move on to the next offer, leaving you no opportunity to come back at a higher price.
On the flip side, that doesn’t mean you have to go at or above list price either. You want to be sure you are not paying more than the house will be appraised for, so that you don’t lose money down the road. Lean on the expertise of your Realtor to determine what a reasonable offer is.
Sometimes the house is overpriced, and we don’t want any of our buyers to over pay either. By working with an experienced Realtor, you can determine what the fair market value of the home is and make an offer that establishes you as a serious buyer.
What step are you on in your home buying journey? Read our other tips on buying a home during the spring market for those that are actively looking. For those that are just getting started, contact us to get pre-approved!
Check out Full Disclosure Episode 6 for more on this topic!