Some Keizer homebuyers are green when it comes to purchasing a home. Some believe they are experts. Many are confused. A few terrified. Others are incredibly stubborn. Regardless of their real estate experience, personality, or approach to purchasing a home in a hot sellers’ market, it’s the job of the experienced Realtor to guide them. The agent is there to help buyers make the right decisions so that they stand a fighting chance in a highly competitive housing market. This helps buyers to avoid mistakes that could kill a sale and their dreams of home ownership. Here are four of the more common mistakes Keizer area homebuyers make in a hot real estate market.
1. Neglecting to Understand the market
Buyers who move from more affordable markets to higher-priced markets are especially susceptible to this. They expect to find comparable homes in size and budget, and are often disappointed when they don’t. Others believe they can take their time until they find their dream home, because they don’t understand how quickly properties move. In this case, it’s important to spend time early on learning about the realities of a hot sellers’ market and the effective strategies to enhance the odds of finding a terrific property.
2. Letting Desperation Guide Actions
Acting out of desperation is one of the biggest mistakes any homebuyer can make. In a competitive housing market, buyers need to be prepared to act quickly. However, when their desire to purchase a specific house—or just a house, in general—overrides their logic, they can make very poor decisions. They may overpay, commit to unreasonable closing deadlines, waive inspections and appraisals, and more. It’s important to understand that other houses will become available. Buyers don’t need to blow their budget or forfeit their original buying strategy to find a home.
3. Hesitating to Make an Offer
Properties move quickly in a hot sellers’ market. That’s why hesitation is one of the worst—and most common—homebuyer mistakes. Buyers who delay making an offer because they want more information, or because they think something better will come along, often miss out. While buyers shouldn’t make too many concessions or act without thinking, sometimes buyers need to move fast if they find a property they love. Otherwise, they risk losing it to another bidder.
4. Overpaying for a Home
Overpaying is also among the more common mistakes Keizer area homebuyers make in a hot real estate market. In an attempt to compete with other buyers—or simply because they have fallen head over heels—buyers may throw out their budget (and common sense). This can lead them to spend too much money on a property. As a result, they may end up purchasing a home they ultimately can’t afford. Some buyers spend so much that they find themselves quickly underwater if the market tanks or even just dips a bit. A bad decision now can cause a great deal of pain down the road.
It’s a good idea for buyers to set a maximum amount they’re willing to spend and then take both their budget and comparable sold properties into account. If buyers step out of their comfort zone, it’s a good time to remember why a limit was set in the beginning.