How to avoid homebuyer ‘shot-in-foot’ syndrome

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Published Date 4/30/2024

You don’t simply buy a home these days. You compete for one. The home-buying season is now well underway, so it’s time to jockey for position. How do you do that? You start by not screwing it up, according to Realtor.com’s Lisa Marie Conklin.

“We’re not pointing fingers here. It’s normal to make some missteps along the way, whether you’re a first-time homebuyer or a seasoned pro,” she says. “After all, the housing market has been brutal recently, with high mortgage rates and high home prices grinding down buyers.” So Conklin rounded up some common bad buyer habits. See if you’re guilty of any of these and then? Hit the reset button.

Your first big mistake is not understanding what the seller wants, says Conklin. “In competitive markets, homes go under contract quickly with multiple offers. Indeed, sellers often go with the highest bid—but that’s not always the case.” Truth be told, you might not even have to have the deepest pockets to win a bidding war.

Apart from price, there are lots of other factors a seller considers. So ask your agent what terms the seller is looking for. A long escrow with a rent-back? A quick close? Would they prefer to simply leave a credit in escrow for any needed repairs instead of having them get quotes and fix things before you move in? Or do they prefer to sell “as-is” at a lower price and dispense with all of it?

Las Vegas-based Realtor Michael J. Vestuto says you can give sellers extra peace of mind by offering earnest money or an underwritten approval letter from your lender, which is almost as strong as a cash offer. “The more worry-free you can make the process for the seller, the better they will feel about working with you,” he says.

Another mistake is second-guessing yourself. “Buying a home is a huge commitment, and feeling anxious about making the wrong choice is natural,” says Conklin. So once you find a home, stop shopping. Indecisiveness is your enemy and could cost you the house if another buyer swoops in while you’re in devil’s advocate mode.

Perhaps your agent is simply not a good fit. While breaking up is hard to do, don’t grin and bear it if your agent isn’t skilled, isn’t compatible, or his or her listening skills are not evident. New York City-based agent Vickey Barron likens the Realtor-client relationship to a short-term marriage. “The ideal agent should fully understand your needs, be a good listener, respond to your questions promptly, and offer advice on making solid offers.” If you feel they are just an order taker, scheduling showings for homes only you pick out, and not a valuable resource, then it is time to find one that is a better fit.

Don’t forget that it is still a seller’s market. Just because the home that interests you is impeccably furnished and contains all the high-end appliances you could ever want for your dream kitchen doesn’t mean the seller wants to give them away or part with all of them. “Asking for everything for free can come across as demanding and disrespectful,” says Long Island-based agent Daniel Gale. “Instead, focus on fair negotiations that benefit both parties involved.” He adds that this approach shows that you’re serious and respectful of the seller’s investment, increasing the likelihood of smiles all around.

Now is NOT the time to gloss over all those important questions. It’s easy to become mesmerized by gorgeous wallpaper, a cozy window seat, and a new deck overlooking a pool that lights up like a casino. Lots of critical elements in and outside the home are far more important than the aesthetics — like the age of the roof and HVAC systems, easements and property line disputes, etc. Is that a new retail outlet complex on the other side of that 10-ft. privacy wall? Do those park lights stay on past 10 pm and can you hear people constantly playing pickleball? Make sure to peel back the onion and ask important questions. If you don’t, it might cost you.

While you may think dispensing with inspections gains you a competitive edge over other buyers, forgoing them could cost you tens of thousands of dollars and major headaches down the road. “You could still woo the seller with a strong offer by including an ‘as-is condition’ clause, which would allow an inspection,” says Conklin. “However, the seller wouldn’t be responsible for repairs.”

Realtor, TBWS

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