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The following article was published in our article directory on September 8, 2015.
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Homebuyer Mistakes: 5 Tips to Winning Deals in a Seller's Housing Market

Article Category: Real Estate

Author Name: Cynthia Thompson - TCT Real Estate

Are you in the market to purchase a property this year? In many regions, the market is red-hot; homes for sale is low and purchasers are abundant. In these times, hopeful home buyers must rapidly educate themselves regarding the investing process and the latest market conditions. Precisely how can you enhance the possibility of winning your dream home in a home seller's market, especially when competing with a wide range of offers? Create a winning approach by adhering to these recommendations, and staying away from prevalent home buyer mistakes.

Be Clear About Your Key concerns

Separate your home wants from the necessities. This tip is of particularly true if more than one person is in a decision-making job. If there are differences, it's best to hash-out these things prior to "seriously" looking at properties. We recommend going to open houses long before you're ready to buy - and keeping notes.

Draft your concerns first, and become a certain home purchaser - you will be one step closer to preparing a winning offer!

Be Available & Prepared to Act

Creating an offer and going backpacking this holiday weekend? You might want to alter your plans. In a more competitive real estate market, being immediately accessible is crucial. If you're intending to go "off the grid" soon, either cancel the trip, or hold-off on placing offers until you come back. At all times, make sure you keep in touch with your broker as to your accessibility, because in multiple offer situations, every minute counts. The same is true of your broker. If these individuals only take phone calls until 7pm and don't work weekends, well ... you might want to find a different agent!

Being available when purchasing a home is essential to winning in a competitive market!

Work With Your Own Buyer's Representative

This is massive! Many buyers don't understand that in the majority of situations, the Seller's Agent is solely representing the home seller. Are you getting in touch with listing real estate agents directly? That could be a big oversight, because if you want to draft a contract, be aware that you've likely already decreased your negotiating power by sharing information with the listing broker. Why? Because except you've consented in writing to the contrary, the listing realtor MUST give all pertinent information about you to the seller. In other words, if while viewing the house you said, "Wow ... I love this bathroom!" - the ultimate price you're going to pay possibly just went up.

Long & short, home buyers have everything to gain by working with their own real estate realtor - and unless otherwise agreed to in writing, they will not be in debt a single penny to the buyer agent for their services. This is also true of most new building transactions.

Choosing a seasoned buyer's broker who will work for YOU is a winning home buying technique!

Is Your Offer Comprehensive & Competitive?

One of the largest miscalculations homebuyers make, is not making sure their offer is thorough and very competitive. Granted, the majority of this responsibility rests with the buyer's agent. But ultimately, the prospective buyer is responsible the instant they sign the offer, and certainly when the offer becomes a binding written agreement. In a competitive real estate marketplace, even simple "clerical inaccuracies" can cost you more money, or lead to you losing the property, as another buyer swoops-in while mistakes are corrected. So after reading the offer, it's a good idea to evaluate all aspects of the offer, including the below.

Checks for Completion & Correctness:
- Do you have a strong Pre-Approval cover letter from a reputable financial institution?
- Are all offer conditions correct as discussed with your realtor?
- Is the home address correct? (you 'd be surprised how often this oversight happens).
- Names listed properly as the homebuyer? Do the proper names match the Pre-Approval cover letter?
- Are all essential addenda & desired contingencies verified and/or attached?
- Are all signatures & initials inserted where required? (an offer lacking a single initial causes delays).

Checks for Competitiveness:.
- Is the offer price realistic for the situation & market conditions?
- Using a funding contingency? Will the borrowing terms look favorable to the homeowner?
- Do you have a home you must sell first? (prior sale contingencies are an added risk to the home seller).
- Are you asking for closing cost credits? (often a deal-killer in multiple offer situations).
- Is the offer overloaded with contingencies? Are they all necessary?
- Make your property inspection time period as short as possible.
- Is the home seller encouraging "Pre-inspections?" (common in some areas).

It's common for prospective buyers who are brand new to the market to create offers laden with overly-restrictive contingencies, or otherwise non-competitive terms. We call these "practice offers." Some realtors willing to help buyers do this indefinitely in hopes of getting an eventual commission. Professional realtors may do a couple - but will eventually press the purchaser to become more practical. Point being, there's no point running in circles placing offers which have little chance of being agreeable.

Providing thorough and competitive offers is a winning home buyer strategy!

Presume Like You Would If You Were The Home Seller.

When purchasing a home in a tough seller's market, you will likely find yourself competing with others. Accepting that reality is essential. If you think every transaction has a "winner & loser," think about waiting until the next buyer's market, because proceeding with an adversarial mindset is counter-productive. And the same goes for your real estate agent - seek to work with a real estate agent who understands the "art" of negotiation, rather than being married to their own pride.

When maneuvering a seller's market, being aware of and appreciating the seller's position is key - keeping in mind your own best interests of course. So rather than drawing lines in the sand, focus on all the issues you can agree on, and remain flexible with other matters.

Strive for a winning outcome, and you'll be more likely to have the seller choose you.

Keywords: Real Estate, Buying A Home, Navigating A Seller's Market, Negotiating A Home Purchase

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