I began my real estate career focusing on working with home sellers exclusively. After a few months in I began to see how limiting this was and opened my business up to buyer’s as well. After doing so I found for the most part I really enjoyed working with buyer’s and helping them to achieve their dreams. However, of late I am beginning to see a few very disturbing patterns.
Today’s buyer’s market or the perception there of seems to have filled buyer’s with a false sense of reality. Some buyer’s feel that they can wait for weeks and weeks to make a decision on a house that they like. The motivation for this is normally trying to get a lower price, or maybe thinking they’ll find a better home. Almost each time this has happened by the time the buyer’s decided to make their move the property is sold or in escrow. Inevitably, the buyer’s get upset ask, “what happened didn’t you tell them we were interested”? A listing agents job is to get the property sold to a ready, willing, and able buyer. They can’t present an offer they do not have. It’s better to submit an offer that gets rejected than to wait and think about it too long.
In addition, some buyers today tend to think that at any point they can back out of a contract without repercussion. Or that finding a home they like better is a valid reason for canceling an ongoing sale. It is important to remember that a real estate contract is a legal and binding contract and you can lose whatever good faith money that you put into escrow if you don’t perform according to the contract. A good agent will keep you protected and informed of your timelines but it is up to you to heed your agents advise. If you see something you don’t like during the inspection period you are well within your right to back out. However, waiting until that period is up and then deciding can put you in a compromised financial position.
Lastly, buyers please listen to your lender/mortgage broker. The common mis-conception of today’s buyer is once they have received their pre-qualification letter or pre-approval they no longer need to be responsible people. Your lender will instruct you what you should and should not do while you’re going through the home buying process. Lender’s will often tell buyer’s the following:don’t make any major credit purchases until your sale is complete, maintain your employment, keep your down payment funds in a separate account and DO NOT spend them, etc. It is important to understand not following these instructions can cause your loan not to be funded. In today’s credit challenged markets it is important to understand that your lender is the key to the deal closing. Not following his/her advice will only serve to make his/her life difficult and can result in a loss of your desired home and possibly your good faith deposit depending on your contract.
In summary, today’s market does favor buyer’s however, it requires a professional attitude and attention to detail. The home buying process can be overwhelming but choosing a good team ( Realtor, lender, home inspector,etc.) should help you to win. Take the time to chose and good team and ask them for their advice. A good team will make sure you follow the rules and get you to the finish line…..Remember the goal is to buy a home.