In this fast and furious housing market there are real blunders buyers make which can affect the success on finding a home or even deciding not to purchase. I’m not going to talk about the basics here like making sure you’re pre-approved. What I am going to discuss is how you should really prepare psychologically and realistically. There is a big difference from perspective to reality. I am going to tell you about the 5 top blunders buyers make which not only waste their time but the Realtors time. And most importantly, what 5 questions you should ask when interviewing a Realtor. So let’s get started!
1. Not having a realistic picture of the real estate market.
Yes, house prices have gone up a lot in the past year to the tune of 21% and condos 24%. If you feel the prices are ridiculous and you are convinced you don’t want to pay these prices, that’s understandable, then sit it out however, there is absolutely no indication this market is coming down.
If you are renting – rents are skyrocketing. Paying rent which is typically higher than a mortgage payment is throwing money away
2. You forgot to calculate your overall budget.
You have received your pre-approval or you may be paying cash however have you failed to figure out your budget and how the house payment will feel In your day to day financing.
Knowing what your living costs are is important. Those costs will be anywhere you live. The difference is the mortgage payment, look at everything, taxes, insurance, hoa fees.
3. Poor Preparation = results poor performance.
It is not the time to change directions when looking at property. Be prepared. What does that mean, talk to your Realtor, stay focused, know your budget, look at homes online to become acquainted with the market.
I hear so many times when I have listened to the exact needs and the first home we go to is perfect and a buyer will say to me. This is perfect however I don’t want to jump at the first thing I see.
If you snooze you loose
4. You are paralyzed in making a decision.
You should be very familiar with what’s available by the time you physically go look at houses, Make sure you are comfortable in making a decision or just wait to look until you are ready. You will frustrate yourself to look and then when you are comfortable of course that house is gone.
5. You fail to hire the right Realtor.
Hiring the right Realtor will make the difference of finding the right home and getting you to the closing table.
There are 5 questions you should ask. If you like the first one then use them, you don’t have to interview a lot of Realtors, stop when you find one you like…
- Do you work full time? I’m sure they will say yes
- Find out how well they communicate – Do. You like how they sound on the phone, do they get right back to you
- Ask why should I hire you – If they answer I’m passionate about helping people or I like looking at houses – run
There are great answers such as I have committed into this profession to learn as much as possible to guide and assist people through the most expensive investment they will make. Or, I consider this a practice, not a working Realtor.
Look at what they have done in the profession or if they work for a broker who is highly skilled. Typically the apple won’t fall far from the tree
- How are you at negotiations? There are three times a Realtor will negotiate: The beginning of the offer, after inspections and the appraisal. Listen to the answer, they should be able to turn a negative into a positive
- Where do you get your business: If they say most of their business is referrals then you know their clients love them. If they say they work referrals that come in, that means they typically don’t know how to get business and keep it unless they are just starting out and are new.
Pro Tip
I know you are anxious to get a home but do not call other Realtors! Stick with the agent you chose, the listing agent typically is not going to look out for you. The Realtor you have been working with is invested in finding you the right home
The same holds true for any questions you may have, some buyer’s want to do the “legwork” for their agent, so they call other agents trying to obtain answers, but once again your agent should be able to answer any questions you have and if they don’t know the answer they should be able to find the answer. By calling the other agent you jeopardize working with the Realtor you carefully selected by making these calls.
If you are moving or buying anywhere in the continental US, please contact me. I have a great “A” list of realtors who are at the top of their game to refer you to.
In the meantime, happy house hunting.
