Boise Real Estate Advice in a Sellers Market
Boise Real Estate Agent, Cristina Pescaru, shares information from Realtor Mag – Making an Offer – 5 Mistakes to Avoid
We are facing a seller’s market, by now, everybody knows it. It is great if you have property to sell, but if you turn around and become a buyer, here are some things to keep in mind and mistakes to avoid in dealing with the reality of a market favoring sellers:
Delaying.
If you wait too long the result may be you end up paying more because you have to deal with a bidding war or you may miss out on the purchase. When you do find the home you love, act quickly and be ready with your paperwork:
- Bank Statements
- Preapproval Letter
- Proof of Funds Documents
Make an offer for your preapproved amount.
Be a smart buyer – get preapproved. This shows the seller you are financially able to purchase a home.
But using that preapproval document to come up with an offer amount can cause problems. “Many buyers come in with a preapproval for the exact offer price, but when you’re competing against other offers, including cash offers, you want to show financial strength,” Chuck Silverston, principal at Unlimited Sotheby’s International Realty in Brookline, Mass. “An exact preapproval could make a listing agent nervous because not only does the buyer not have any wiggle room to negotiate, but they might no longer qualify if interest rates rise.”
Should you submit a lowball offer?
Real Estate Magazine indicates that lowballing a seller often backfires, particularly in a seller’s market. “A lowball offer that isn’t backed up with math or comparable sales data is disrespectful and could turn off the seller and possibly mean you will miss out on the property completely.”
Should you waive inspection contingencies?
The simple answer is NO. “I don’t care whether it’s new construction or even your mom’s house you’re buying from her – get it inspected,” urges Joshua Jarvis of Jarvis Team Realty in Duluth, Ga. Further, if you waive the inspection contingency in your offer, you may lose the earnest money if you later back out of the deal.
Make a good presentation of yourself.
As we said before, this is a seller’s market, so buyers need to look good in the eyes of the seller.
“In today’s highly competitive environment, the listing agent is trying to determine which buyer will be the easiest to deal with,” Silverston says. Buyers may want to avoid pointing out every defect, making nitpicky queries, or questioning the seller’s tastes.
“Basically buyers who act less than enthusiastic will see themselves at a competitive disadvantage when sellers are comparing multiple offers,” he says.
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