In this extremely hot market, buying a home isn’t the same as it was even a year or two ago. Some things need to be readdressed. Here are eight outdated buyer tactics you should forget about using.
1. Forget about list prices. The value at which a home is priced doesn’t mean that’s what it will sell for. The list price is a starting point. A house is worth what the buyer and seller are willing to agree on.
2. Forget about comps. The prices of homes are escalating higher than the prices of comparable homes from three to six months ago. Comps are only useful as a data point for the appraiser.
3. Forget about what you believe the house is worth.
4. Forget about the appraiser. Unless you’re aren’t making an offer subject to financing, there will be an appraisal. Right now we’re seeing a lot of cash buyers waiving the appraisal contingency.
“Buyers need to find new ways to separate themselves from the rest.”
5. Forget about searching at your maximum price. Look for homes below your maximum price. Chances are, you’re going to be competing with escalation clauses if you want to win that house.
6. Forget about searching for your dream home. With such low inventory, you can’t afford to take all the time you want. You will likely need to accept a second or third choice house and then make it into your dream home over time.
7. Forget about the status quo. Things like the “buyer love letter” are falling into disrepute. Buyers need to find new ways to separate themselves from the rest. I have a list of things we can do to make your offer stand out and be more attractive.
8. Don’t give up. Tenacity will eventually be rewarded in this market.
If you have any questions or want to schedule a consultation, please feel free to reach out to me.
