You see it all over the news, websites and Facebook. "Seller's Market" here, "House sold in 24 Hours" there, "Winning Bid $30,000 over Asking Price" here. This is all find and dandy for the sellers, but where does it leave the buyers?
For home buyers, it looks something like this:
- Searching, searching, and searching for a home to look at...various websites, calling multiple agents. You decide you can find a house on your own, you don't need a Buyer's Agent to help you.
- Most of the homes you call on already have offers.
- You finally find one that was just listed yesterday. You set an appointment to view with the first agent to answer their phone.
- When you arrive at the house, you and the agent wait 10 minutes for another buyer to finish up their viewing appointment. The agent you called to show you the house is asking you several questions, trying to pry into your private life. Things like "what kind of loan are you approved for?" and "will you need to be folding in closing costs?" You think to yourself, 'What business is it of yours, I just want to see the house?'
- After you tour the house, decide you like it (a lot), another agent and their buyers are waiting to get inside. You are a little nervous that there are so many buyers viewing the home.
- Your agent writes up the offer in the driveway, and you sign it. You insist the offer be $10k under asking price, because your Dad said to never pay full price for a house. After all, if the market wasn't so hot, you would have offered $30,000 less than asking price.
- You wait anxiously for a reply, you just know the sellers will take your reasonable offer.
- You receive a written notice from the sellers that there are multiple offers, and that you can make any changes to your offer by the deadline. Your agent encourages you to increase your offer price, to at least full price.
- You decide you have already made your best offer, and take a chance.
- You receive written notice that your offer was not accepted. Back to the drawing board.
- You are now frustrated, thinking that you will never find a house you like. Or worse, what if it's just a game the real estate agents are playing to create a bidding war?
- This cycle continues, with a new agent, because you think it was the agent's fault you lost the last house.
- 6 months later, the market has appreciated 15% and you no longer qualify to buy the kind of house you want.
You might laugh, but it's true. To prevent this from happening to you, there are several things you can do to prepare for a better buying experience. Read on to find out How To Get the House You Want in A Hot Market.