Advice for first-time home buyers
Dear Phyllis,
I have been back and forth about buying a home for the last three years. Each time I make an offer on a home, someone else’s offer is better; it’s either cash or they offered more money than me. I am becoming discouraged and hope you have some advice for first-time home buyers, such as me. Avo
Dear Avo,
The current market is extremely confusing. Many listings are selling quickly, in multiple-offer situations, and therefore some for over asking price. Certain price ranges are much more competitive than others. The first-time buyer market is especially difficult to penetrate.
The first thing I would suggest is to be patient. I know that is easier said than done, but it’s the best advice I can offer any first-time home buyer.
The second suggestion is to work with an experienced real estate agent. Not one who is semi-retired or one who is newly licensed.
The third suggestion is to work with a local real estate agent with an excellent reputation. As a buyer in today’s competitive market, your choice of Realtor is crucial. Certain real estate agents, known for creating unnecessary conflict, are a hindrance. In a multiple offer situation, your choice of real estate agent can kill your offer. All things being equal, the seller’s agent is not going to want to work with them/you and will guide their client (home seller) to a Realtor who has a track record of closing escrows.
There are a couple of things you & your real estate agent should consider:
1) With your lender’s prequalification (which should be current/within 30 days and mention your stellar FICO scores), you should also include evidence of your down payment and reserves (cross out your account number/address/etc. to prevent identity theft)
2) Have your real estate agent discuss with the seller’s agent specifics: preferred close of escrow date, preferred services (escrow & title companies, etc). What is the seller’s motivation? Is a quick escrow a benefit or hindrance? Tailor your offer to meet the seller’s preferences; it’s not just about the purchase price.
3) When you see a home you like, act quickly – try your best to avoid a multiple offer situation. After writing your offer, be prepared for a counteroffer, and again, don’t drag your feet; know ahead of time how much you are willing to increase your offered price.
In more affordable price ranges, it is not uncommon for buyers to write more than half a dozen purchase offers. Best of luck to you; good things come to those who wait!
Related Post: A first-time buyer begins to settle in
