Why some Home Buyer's aren't getting the Home they Deserve
Buyer's can be stressed and frustrated to find a great home in a hot market. Interest rates are on the rise and inventory is low. These 6 bullet points will be helpful in finding the home you want and deserve. The real estate industry and the local market place changes and pivots quickly, it is wise to be aware of and hire an experienced advocate before making your largest investment.
1. Lack of Inventory- The Atlanta real estate market is on fire! Interest rates are expected to rise over the next twelve months, it is still a great time for home buyers to buy. A thriving economy and interest rate rise projections have brought an onslaught of buyers looking to find their next or first home. The amount of homes that are coming on the market versus the amount of buyers looking to buy are not equal. Creating what is called a "Seller's Market" which does not mean that it is not advantageous for buyer's to buy. By definition, a "Seller's Market" is when inventory levels of Real Estate are at six months or less.
2. Slow to Pull the Trigger- A home is most consumers biggest investment, it is normal and a great idea to be educated before making a decision. A great agent will never pressure you to buy a home that is not the right fit for you. However, a great agent will educate you that the market is moving very fast and when you find the right home be ready to submit an offer. You usually want have even days, it could be a matter of hours before a home has been taken by another buyer. Time after time, indecision in a hot market could make a buyer miss out on the right home or they may pay more with the negotiations moving to a Multiple Offer situation. When a Multiple Offer situation is unavoidable, make sure you have an Expert Advisor with a proven strategy to maximize your chances of winning in a Bidding War.
3. Lack of Preparation- Abraham Lincoln said "Give me six hours to chop down a tree and I will spend the first four hours sharpening the ax." This is also true in shopping for the perfect home for you and your family. Lack of Preparation may come in the form of not being Preapproved for a home loan, being Preapproved is stronger in a sellers eyes in a hot market, it could be the difference of obtaining your dream home or not. It can also be disappointing to find out that you are shopping in a higher price range to later find out the homes you have viewed, you can't qualify to buy. An Expert Advisor will always ask a series of great questions prior to viewing homes. Like unpeeling an onion, the questions will help you narrow down exactly what you want and don't want in a home. One of the biggest complaints that we have heard from buyers that have terminated with other agents is "they didn't listen and were showing us homes that we were not interested in." Without taking this step properly it waste home buyers countless hours in time and gas viewing homes that aren't the right fit. The combination of being Preapproved, being asked the right questions and also driving around areas to make sure they are a fit will help you be prepared. Being Proactive is always better than reactive in finding the perfect home.
4. Inexperienced or Part Time Agent- Before going into this segment, wanted to state that we were all new or inexperienced at any skill at some point, including us years ago. This may not even be a new agent, it could be an agent that has held a license for decades that may not be as active in today's market or only sold several home per year. The average agent only sells 5.9 homes per year, at only one home every other month, this doesn't allow the repetition to master the skill set. Not only is repetition the mother of skill, the agent may not have up to date systems, processes or procedures to find or negotiate the perfect home. An Expert Advisor has 81 Variables that they educate buyers of prior to negotiating an offer. When distilling down each variable, there could be many more. The mismanagement of even one variable could cost buyers $1,000's of dollars and/or missing out on their dream home. Make sure that you know what buyer agency is and how buyer agency is designed to protect the consumer, every state's laws very. Beware of an agent that doesn't educate you on Buyer's Agency prior to viewing homes.
5. Packaging their offer- This is probably the biggest area that having a skilled agent representing you can be the difference in finding and winning the perfect home at the right price. There are many variables that go into packaging an offer, even an unchecked box on an amendment or exhibit can cost a buyer $1,000's of dollars. The price is not the only factor that a seller is going to review, there are many other factors that they will consider in the guidance of an experienced listing agent. Several examples include an acceptable closing date, financing terms, closing cost, special stipulations, etc. There could be a lengthy book wrote diving into packaging the offer. Unlike buying a car or a boat, low balling offers can make a seller feel like you aren't serious about buying the home or give another buyer time to submit an offer and starting a bidding war. Every home is going to be negotiated differently pending on the factors of each listing, be sure you have an experienced Expert Advisor before positioning your offer.
6. Champagne Taste/ Beer Budget- There is nothing wrong with having Champagne taste and a Beer budget. Every consumer should want to get the best home for the least amount of money, this is what the meaning of value is about. We all want our hard earned dollar to stretch as far as possible and get a good deal. However, being unrealistic about getting a home for far less than it is worth, especially in a hot seller's market will keep you from finding the right home and also can help you get the wrong home at a not so good price. An example could be a listed home that is extremely overpriced to begin with, the buyer puts in a low ball offer and the seller accepts the offer. The buyer feels like they got a good deal because the seller came down so low but in reality the home was overpriced to begin with. Experienced listing agents know that overpricing a home is not helpful and backed on research it cost a seller money and time than if it was appropriately priced from conception of the listing. Make sure that you are getting a good value and the home you want but be aware that the seller in a hot market, their job is to also get the most money for their investment.
Hopefully this article was helpful for you while you are looking for your dream home. If we can help with any questions, even if you are not quite ready. Please contact us through TracyCousineau.com, click on Contact Us and we will respond to your question in a timely manner.
To contact Tracy Cousineau, go to TracyCousineau.com or text/call 770-378-3161