Friday, March 6, 2020 / by Alicia Hanna
If you have been to Costco in the last couple of weeks, you will notice a shortage of one particular item. All over the country, there is a low inventory of toilet paper. While the Charmin Bear might be dancing with joy over high sales, it is a crappy situation(mind the pun) for consumers who are now running all over town to find toilet paper. So what does toilet paper have to do with real estate?
If you look up Ottawa Real Estate, you will see a LOT of information about how hot the market is. In this market, you will see houses going up for sale and being sold within days way over the listing price. The market right now is a seller's market. A hot market means that this is an ideal time to sell. Buyers have a limited range of choices, prices are higher, and multiple offers are being put in. See the similarities? The inventory of houses for sale is low, and people are running around trying to find houses for sale. With the right agent, sellers can have a very stress free time selling their home. For buyers, the process can be a bit discouraging at times, but with a good plan in place, and a good real estate agent, you can still get your dream home. There are 5 common mistakes homebuyers make in this market, so let's try and avoid them.
Not Making Your Best Offer
I get it, no one wants to pay full price for anything, and it is tempting to try and offer lower than the list price. Offering lower than asking price is a reasonable strategy, especially if the house is overpriced or if it’s a buyer’s market with lots of available inventory. But trying to get a deal when you’re in a seller’s market might not be the best tactic. There is usually a shortage of inventory, and the competition is usually fierce. Buyers need to come in with a strong opening offer. A lot of houses are selling way over list price and without conditions.
Over-Analyzing the Purchase Price
Just as impulse-buying a home is risky, over-analyzing a home purchase in a seller’s market is ill-advised as well. When you wait too long, you are at high risk of losing the home you have fallen in love with. Once you have figured out the type of home you want, the location you desire, your price range, and finally find a home that meets your qualifications, don’t wait to make an offer. To give yourself more leverage, be prepared to move quickly by having your finances in order. Know how much you can truly afford, repair any credit issues, and have your down payment in hand.
Working With an Inexperienced Agent
In this market, it benefits buyers to get all the help they can. If you have a seasoned agent on your side, you’ll probably have a better chance of getting the home you want. When you are competing against other buyers in a fast-paced market, it is vital to be offer-ready. Working with a real estate professional saves tons of time and stress, as they know the ins and outs of the process and can provide tremendous insight regarding upcoming inventory.
Not Prepared for a Bidding War
If there is ever a time when a bidding war could be imminent, it’s now. A huge fear is to go over budget, but when searching for homes, adjust the search at least $50k below your max budget to leave room in case of an over-asking bidding war.
Not Learning From Your Mistakes
Listen, we all make mistakes; I had a mushroom cut for years. There’s no shame in learning that your offer has been declined but it’s easy to get frustrated if your offers are declined repeatedly. Learn from your last offers so you can move into your dream home. Buying a house is like dating. You have to let a few keepers slip through your fingers, have a sleepless night or two, and then get back out there and seal the deal with your dream home.
If you avoid these common mistakes, buying a home will be a much simpler process. Who would have thought that buying a home could be easier than buying toilet paper?