5 Mistakes Buyers Make in a Seller’s Market

As you may have seen from one of our monthly market reports, the greater McAllen area currently favors sellers for homes listed under $200,000. Buyers in a seller’s market can get what they want, but they need to bring their A-game. Here are five common mistakes buyers make that you need to avoid:

1. Not making your best offer. The drive to buy what we want for as little money as possible is practically in our DNA. When most people see the listing price of a home, they naturally wonder what they can really get the house for. Making an offer lower than the asking price is a perfectly reasonable strategy in some instances, such as when the house is overpriced in comparison with similar homes in the area, or it’s a buyer’s market with a glut of available inventory. Trying to “cut a deal” in a seller’s market, though, might not be the best idea.
2. Waiting too long to make an offer. Just as impulse buying a home is risky, analyzing a home purchase to death in a seller’s market is inadvisable too. When you wait too long, you’re at risk of losing the home you’ve fallen in love with. Once you’ve determined the location you desire, your preferred price range, and you’ve found a home, just make the offer!
3. Not being pre-qualified (or better yet, pre-approved) for a loan. You might know that you’ll be approved based on your steady income, your low debt-to-income ratio, and your high credit score, but the seller doesn’t know that. The only way to prove to them that you’re a qualified buyer is to be pre-qualified through a lender. Pre-qualification is absolutely paramount. A buyer has zero advantage if they do not have the cash to purchase without a mortgage and haven’t taken the time to speak to a lender. Not getting pre-qualified sends a message to the seller that you don’t have your ducks in order.
4. Not learning from your mistakes. There’s no shame in learning that your offer has been declined, but it’s easy to get frustrated if your offers fail over and over again. Learn from your last transaction and come back with serious intent to lock up your next great opportunity.
5. Not working with a serious agent. In a seller’s market, it benefits buyers to get all the help they can. If you have a seasoned agent on your side, you’ll have a better chance of getting the home you want. In most cases, buyers don’t even pay the real estate agents—sellers do. When you’re competing against other buyers in a fast-paced market, it’s 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.

You need a plan in place to avoid making mistakes.

If you have any questions about buying a home or about real estate in general, give us a call or send us an email. We would be happy to help you!