Let’s say if you are in the market to be buying a home. In the current environment here some things you might want to be aware of with regards to acting on a house that’s affordable and within your budget…
You have found the family home that you could afford and it is priced at $650k. For whatever reason, you and your spouse are conflicted, one of you wants to proceed the other doesn’t. So you let the house sit, you don’t make an offer and you sleep on it for a day or two. It’s completely realistic the same house the next day or even the same day could be in contract with another buyer. This is not the market to take the sleep on it with regards to buying a home. If you like the house, you can afford the house, you know the area and the neighborhood, and the location and all the initial research has been done on the house, then make an offer.
Here is why if your expectations for buying a home are such that it’s very specific, you’re looking for a certain type of a house, a very specific type of property which only comes up maybe 1 or 2 times a year. You can expect that if you don’t act quickly the house might have multiple offers and you end up spinning your wheels and potentially losing out on that house because of your failure to not act when your real estate agent recommended that you do so based on your needs, wants desires and goals.
It is not by any means a pressure tactic, but it is the motivation to make an offer on a house you can afford when it pops up. This is the market where you need to follow this path…
- Identify an opportunity
- Evaluate the opportunity
- Act on the opportunity
It is not a market to try to offer less on the house, try to negotiate lower, try to extract out seller concessions that might not be available especially if you’re in a competitive area. It also means you need to be all in this means having your down payment together and all closing costs together. You’ll need to come to the realization you may pay the list price for the house or potentially even over the list price of the house especially if your real estate agent tells you the house is underpriced. What a lot of listing agents do is they will list a house very low to induce multiple offers so it’s a false reality of what the house will actually sell for. Factor in other sales in the area, more than likely in most times circumstances the house will appraise too.
Keep this in mind if you’re deciding whether or not to act on the house. You still get your loan contingency, you still have an inspection contingency, just because you sign a real estate purchase contract is not automatically mean you’re signing your life away. Take the advice of your real estate agent and your lender who are working on your behalf to help you in your family be successful in your home buying endeavor.
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