Among all the other challenges of purchasing a home, today’s buyer often has an added burden: the advice of friends, co-workers and family.
And what do these well-meaning-advice givers saying their very ‘knowing’ tones of voice? Well, a sampling of advice might include:
(a) How dirt cheap ‘those foreclosures’ are;
(b) How much of a discount you should be able to negotiate;
(c) Exactly how much is too much for you to pay, or,
(d) That banks/sellers are sooo desperate to sell.
I recall a first-time homebuyer with whom I was working deciding to withdraw his offer on a property that did meet his criteria for location and amenities and price point.
Why? His co-workers thought he should be able to get a ‘bargain-basement’ price. He told me, “I don’t want to look like a fool paying too much money for this place.” So he let it go… and, he still has not found his perfect home in combination with his perfect price scenario. Or at least, the price that his co-workers insist he ‘should’ be able to get.
Nothing is ever ‘simple’ that is meaningful…. including purchasing a home. The simplicity of advice from someone who reads a headline, but has no idea of the real market dynamics you face, is a typical example of that.
And what are the special dynamics for many buyers in today’s climate? Well, let’s consider:
- Banks and/or investor lenders who can take up to five or six months to decide whether on or to accept an offer;
- Limited inventory of homes to consider;
- Multiple offers on properties of good value within hours of the listing becoming public;
- Upside down sellers who find it impossible to consider a low-ball offer because they owe so much more on their properties than the current market value.
What to do? Research your market area well and consult a knowledgeable source for your information. Remember that ‘the market’ is an ever changing situation, and that few if any ‘rules’ consistently apply. Then move ahead.
This moment in time continues to be an incredible opportunity for buyers – prices are becoming increasingly more ‘reasonable’ and interest rates are low. Now is the moment. Ignore the peanut gallery.