Rest assured however, real estate buyers in a seller’s market can get what they want, but they need to bring their “A” game, have a plan, and be ready to make decisions. Here are five common mistakes we as real estate agents often see, and how to avoid them.

• Failing to make your BEST offer on the property

We all want to get the biggest bang for our real estate buck.  So when most people see the listing price of a home, they naturally wonder what they can really get the house for. Offering lower than asking price is a reasonable strategy, if the home is overpriced or there is ample inventory. Unfortunately, trying to get a steal of a deal in a seller’s market might not be the best approach. In a seller’s market, many buyers do not step up with a strong enough offer. There is usually a shortage of inventory, and the competition is commonly fierce. So always present your best offer to ensure a solid close.

• Over-Thinking the Price

Over-thinking a home purchase in a seller’s market is just as risky as impulse buying in a buyers market. When you wait too long, you risk losing your forever home to someone ready to swoop in for the taking. Once you’ve determined the type of home you want, the location you desire, and your price range, and FINALLY find a home that meets your qualifications, don’t wait to make an offer.  A good real estate will help guide you through these decisions, including help with pre-approvals.

• Working with inexperienced or part time agents

In a seller’s market, it benefits buyers to get all the help and expertise you can. With seasoned real estate agents who are in the game every day, you’ll have a much better shot of landing the home of your dreams. Plus, in many cases, buyers don’t pay real estate agents; sellers do. Working with a real estate professional saves tons of time and stress, as they know the ins and outs of the process and can provide tremendous insight regarding what’s about to come into the market.

• Not being prequalified or pre-approved for a mortgage

You might know that you’ll be approved for a mortgage loan based on your credit qualifications — but the seller probably doesn’t know that. The only way to PROVE to a seller that you’re a qualified buyer is to have that proof from a lender.  Not getting prequalified sends a message to the seller that the buyer may not have their ducks in a row and isn’t a serious competitor in the sale.

Getting pre-qualified for a mortgage means that you simply told your lender your financial story. Getting pre-approved involves submitting a mortgage application, complete with providing verifying documents. “Presenting this shows the seller that the buyer has taken the necessary steps to move forward and is serious about a home purchase.

• Not learning from your mistakes

There’s no shame in having an offer declined, but it’s easy to get frustrated if your offers are declined repeatedly. Work with a good agent so they can coach you on what to expect so you can move in to your dream home, especially if you are a first time homebuyer. Buying a house in a seller’s market can be a lot like dating. You probably have to let a few keepers slip through your fingers, put up with a few sleepless nights, and then come back with serious intent to lock up the next greatest opportunity in front of you.

Trying to find and purchase a home in a seller’s market? Let us guide you through the process. Contact us today to see what’s available and how our team at Downtown Realty can help!