If you’re a homebuyer, avoid critical mistakes by following this advice.
We spoke recently about the pitfalls that sellers can fall victim to in a multiple-offer situation, so today we’re going to focus on the potential pitfalls that homebuyers can run into.
Extraordinarily high demand plus extraordinarily low supply equals high prices, and yet, buyers are not really paying the highest prices ever for real estate right now. They’re actually making monthly payments on the biggest mortgage loans with some of the lowest interest rates ever. These payments are about the lowest they could ever possibly be.
“Make your highest and best offer from the get-go.”
So don’t fret about high prices. You’ll either not live in the home long enough to pay the full price for the property, or if you do, the value of the property will have increased multiple times by the time you are ready to sell.
All that being said, the goal is simple as a buyer in a market like this: Win the bidding war. If you don’t win the multiple-offer situation, it doesn’t matter what you’re willing to do to get the house. Plan to make your highest and best offer from the get-go because there’s no guarantee you’ll get a second chance to make it better later.
Contingencies limit your risk as a buyer and project that risk onto the sellers. By reducing or eliminating contingencies, buyers increase their own risk while reducing the risk of sellers, which in turn makes their offer more attractive.
When it’s time for you to buy, make sure you work with someone who knows how to structure the highest and best offer to win the home against strong competition.
If you have any questions for me, don’t hesitate to reach out via phone or email. I look forward to hearing from you soon.
