10. Being too aggressive with your concessions
My last video and article talked all about the pitfalls of being too aggressive with your offer, so I'm certainly going to refer you to that, but let me hit some of the highlights. The real estate transaction has certain things in place to help protect you as a buyer - inspections, appraisal, etc. In this hypercompetitive market, it's not uncommon to see people waive some of the rights they have for some of these in order to make their offer seem stronger. Certainly, that helps put some extra weight behind the offer, but it can also put you at a crippling disadvantage in the long term if you do so recklessly.
9. Assuming every home is priced for negotiating
On the other side of the proverbial real estate coin is the seller's side. Just like our side when we look into strategies to benefit us as buyers, the sellers will have their own strategies when listing a house. A common misconception that has permeated years of a more balanced market is that every house that you see will be priced for negotiating. While yes, most properties and sellers will have some wiggle room that they can and will give in certain situations, many can be extremely stubborn and unwilling to come down at all even after an extended period of time with little to no real interest.
8. Making a lowball offer.
Piggybacking off the last point, just because there is room for negotiating doesn't mean that everyone is open to negotiating the same way that you are. On the other end of that potential deal is a human being with their own thoughts and emotions. Many people when negotiating start low - that way they can work their way towards where they want to be, but we have to remember who is on the other side of the table. All too often you hear stories of people low balling an offer to see if the other side will say yes because if they do, you just got one hell of a deal, but there are potential issues with that approach. If they are insulted by how low or out of the realm of their mind your offer is, there is a chance they either dig their heels in and budge as little as they possibly can out of spite, or just say no and ignore you, your existence and any other offer you might send their way. Be tactful in your negotiating approaches.
7. Not considering selling the home in the future.
The average homeowner moves every seven years or so - sometimes more, sometimes less. Understand that going into the home buying process that just from a statistical standpoint, you will likely move again at some point in the future. If you know that you're moving sooner than later, make sure there is room for you to increase the value of your house with new paint, floor, etc. If you're looking to move further down the road, what things are you going to need to do in order to have an easier time selling in the future? Do you need to replace the roof? Are your water heater or air conditioner dated? All these things can come back to bite you in the future if you're not careful. Think ahead and be prepared should you decide to sell in the future.
6. Overlooking the quality of the home and just the updates
Flipped houses can be a mixed bag. Some investors hire out reputable contractors to do all of the work. Some investors do the work themselves. Some people have no idea what they're doing. Often times these flips do one thing extremely well and that is make a house look beautiful, but you have to keep in mind that the work was done with a business interest. The seller is looking to make a profit and in order to do that they are going to try to buy the house for as little as possible and sell it for as much as possible. Think to yourself, "why did they get the house for such a great price?" Sometimes they just get a good deal. Other times there is a glaring issue like the foundation needing work. Don't be so focused on the clean, shiny, pretty things in the house that you fail to look at the bones and make sure that you have a quality foundation and you have a quality roof. If they can get away without addressing issues, chances are at least a handful, if not more, will try.
5. Not seeing the potential in a house.
Depending on your situation, I might not classify this one as a "mistake". There are certainly people who have no interest in doing any form of work to the house that they are looking to buy, but there are a ton of people who are willing to paint, or put in new flooring or anything else they need to in order to make their house the home they've always wanted. Those are the people who need to be able to see potential in a house. My house that I just bought this year for example has fantastic bones, but has some things that need addressed. It's dated. It has some wood rot in some places. It needs a bit of love, but by the time it is what my wife and I envision it to be, the work we put in will have an absolutely massive return both mentally and financially. Don't overlook the dated gems.
4. Buying a Home you're not sold on
The market today is extremely competitive. It isn't unheard of for buyers to put in offer after offer after offer on house after house after house in an attempt just to land a deal. Chances are that you aren't completely sold on all the houses that you're offering on. If you're not sold on it, you might find yourself down the road with serious regrets. Some aspects of a house you simply can't change or you can't change in an affordable way. The layout is what it is sometimes. You can't pick up that house and move it from neighborhood A to neighborhood B. Definitely consider it and consider your options when you're looking, but if you aren't sold on the house you're probably better not offering in the first place.
3. Holding out for the perfect home
On the flip side of the previous point, keep an open mind. Especially if you're a first time home buyer or are in the lower price points, the chances that you will find the absolute perfect house is extremely small. Yes, you want to hold out for something that you actually like or want, but also you don't want to be so closed minded that you miss out on a number of great houses for you and your situation in the hopes of finding that perfect diamond in the rough. It's unrealistic and you're going to be setting yourself up to be disappointed the longer the process takes.
2. Becoming obsessed with the one listing they found online
We see this one all the time. We send a potential home to a client and they fall in love and really become obsessed with the property. Remember that it is still an incredibly competitive market. If you want it and you really want to throw everything that you can to get it, that's okay. It's entirely up to you. What we want to avoid is getting that emotional attachment before you're under contract to the best of our ability because if you are too emotionally vested, every house you see from that point out might be great but it's not X. Keep an open mind and do your best to keep your emotions in check, especially when looking at a number of houses.
1. Passing on a great house because it's early in your search
Finally, we have the situation where you find an amazing house really early on in your search. Surprisingly, it's pretty common to see this happen. Yes, the process can be emotionally exhausting at times and the desire to make sure that you aren't just rushing into something is understandable, but you also want to make sure that you aren't passing on something you really want just because it's early. Most of the time you don't need to be in a rush but understand that no two properties are exactly the same. You might not see another place quite like this one. If it's the one you think you'll love, pull the tri