Top Mistakes Buyers Make in a Seller’s Market and How to Avoid Them
Purchasing a house is the biggest financial transaction that you will make. While not everyone is adept at handling such transactions, it is not their fault for being unable to make a smart decision because often times the system is heavily tilted in the favour of the seller.
The realty sector is an ever evolving playing field. One needs to remain at the top if they want to make investments that benefit them. In the same light, this article explores the 5 most common mistakes buyers make in a seller’s market and how they can avoid them and get an amazing deal well worth their effort and investment.
The Desperate Buy
Searching for a house can be a daunting task especially in the summers. Visiting various houses and apartments and not being able to find a place that suits your needs takes its toll on the best of us. This can result in people acting out of desperation and buying the very next house that they come across. Desperation has no place in a home-buying transaction.
Once this sets in, you are at the risk of compromising the entire transaction by being more vulnerable and making an unwise decision such as talking yourself in to buying a house that is not what you need or afford.
Home buying is a process and there is no corner cutting involved in it so take it one step at a time and you should be fine.
Misunderstanding Your Budget
This refers to both overestimation and underestimation of your budget. It is advised that you should not run the figures in your head. Precision and accuracy is your best friend in this case and the more en point you are, the better it is. Financially speaking, home buying is one of the biggest decisions you will take so you need to be very clear on what you can afford.
In a market with lucrative offers, you might be required to make on spot decision which often tempt people to go a bit over their budget. Do not operate on the assumption that it is just a few hundred thousand rupees extra that you can cover up later. As a home buyer, you need to understand the other costs associated with home buying such as renovation, overheads, your own savings, savings for kids, their fee etc. All of these get affected if you miscalculate.
If you find yourself heading towards such a situation, always consider discussing it with your peers or family members. This way, you will have an idea as to the extent of your budget.
Ignoring the Market
It is extremely difficult to time the market and base your decisions on current trends. A better and more suited technique is to base your decisions on your plans and surroundings. Make such decisions based on things happening in your family, your life and your career.
You can ask your agent to inform you about societies that move quickly, how fast a society is selling out, how long do the houses in your price range last on the market and son on.
Once you have these things you can make and educated decision about your purchase.
On one end of the spectrum you have over eagerness while on the other side you have hesitating. Both have the same impact – you not getting what you really need.
The worst thing in a realty market is to come across a property you really like – something that fulfils all your needs and is within budget – but to see it placed under contract even before you can make an offer and all this because you hesitated for a better option.
Whenever you step out in to the market, make sure everything is in order finance wise and paperwork wise. This will often give you an edge over other home buyers who come to the market unprepared.
In an active market, it is common to get multiple offers on the same home which leads to price wars and creates an atmosphere of bidding. Once you have lost out on a few deals like this, it becomes tempting to pay more than you have budgeted.
To avoid this scenario, always ask your agent to show you comparable homes so that you too have options just like the seller does.
These were some of the most common mistakes that people end up making in a seller’s market. Have you also bought in a seller’s market? If yes, share your tips in the comments below.