My Buyers Most Frequently Asked Questions…Answered!
Buying a home for the first time can be confusing. That’s why the tips and strategies you’ll find in our 8-week series will set you on the right path. It’s our own unique approach and a “behind the scenes” glimpse of what you should look out for and consider when starting your own search for a home.
Buying a home, especially if it’s your first time, can be complex and confusing at times. But, you are not alone! Just like most first-time homebuyers, you want to make sure you don’t do something wrong. Or, you might worry that you don’t know what you don’t know!
We hear from our clients all the time about their concerns and questions when buying a home in today’s market. That’s why we’re here to provide answers to some of the most common questions we get so you can become better informed and more reassured.
The questions swirling around in your mind are likely the same ones that other buyers, like you, want to ask too. And, more than likely, it was the same questions that buyers who went before you have also asked!
We’ve heard your question before, and even if we haven’t, no question is ever a “dumb question,” so ask away! And, if you have any questions that aren’t listed below here, reach out and ask!
Even though each buyer’s situation is unique, you’ll find the question/answer sections below helpful in giving you some insight on what steps might be best for you.
Plus, maybe you’ll also learn something “you didn’t know you didn’t know”!
Q: Should I put a deadline on an offer?
This is a tough question to answer and really depends on the specific situation of the home you are bidding on.
In more competitive neighborhoods, most sellers want to give their home full market exposure to get the highest price possible. That means sellers tend to have their own deadline for any and all offers.
If a seller is not anticipating multiple offers or perhaps just wants less inconvenience or a need for a quick sale, moving quickly with an offer and having a deadline for a response can be a useful strategy.
If you are going to put in a deadline, make sure to give one that allows for enough time for the seller to respond, but not long enough for another offer to swoop in.
Again, it depends on the particular situation. We have found that 8-12 working hours (not sleeping hours) is often a good time period for a deadline. Often times, this could mean avoiding a bidding war.
But you’ll have to make it worth the seller’s while to want to take their home off the market quickly—perhaps a higher price than asking and favorable terms such as no or short contingency periods.
In some situations, a deadline will not make the seller respond, so be prepared for that outcome as well!
Q: Is it worth it to find something faster when interest rates are low?
No! Don’t let interest rates dictate your time to buy a home. We are still in a period of historically low interest rates and we don’t expect them to spike any time soon.
A slight increase in your interest rate is not going to make the home you want unaffordable. And, just like buying and selling other investments, such as stock, timing the market is never a good idea.
Buy and sell when the time is right for you. Speak with an expert about perhaps which month is best, but always go based on your own timeline and schedule.
One thing we know for sure—there will always be homes to buy. And, when interest rates rise a lot, that often times leads to a slight cooling of prices.
Q: How do I get a good deal?
Good question and one we focus on for each and every one of our clients! We always say, you make money when you buy in real estate, so making sure you buy right is HUGE.
The one and only way to make sure you are getting good deal is to look at the specific neighborhood, building or block you are buying in and compare your home to what has sold over the last six months to a year.
There will be a range in price depending on specific location (for example, a basement unit will sell for less) and condition (just renovated will sell for more). Compare the home you want to buy with what has sold recently to make sure you are not overpaying.
Also get information from your agent about whether it’s a sellers’ market or a buyers