5 Ways to Reduce Buyer Burnout
Buyers know houses are going fast. However, there is no way to truly understand how it feels until you dive in.
Is it hard, discouraging, frustrating? It can be. Is it impossible to buy a house? No! May it take time to find the right one AND get an offer accepted? Sure. Is there a way you can prepare? Absolutely.
I don’t sugar coat it. I’m not the Agent that tells Sellers I can sell their home for $500,000 when really it will more likely be $475,000. I also don’t tell my Buyers it will be easy, and they’ll find their dream home quickly. I believe setting realistic expectations while being optimistic (because house hunting should be exciting!) is the best recipe for success.
These five tips can help create a better house buying experience:
1. Get a preapproval AND cost work sheet FIRST.
You may think you have a good understanding of your finances. But before speaking with a Lender about your full financial portfolio and what type of loan / interest rate you can get, there may be surprises.
Some Lenders do a great job of sharing estimates for all the costs associated with buying. Others aren’t as upfront. I always advise my clients to ask for a Cost Worksheet from the Lender outlining what to expect in terms of downpayment, closing costs, and mortgage payment at their preapproval amount and interest rate.
Surprises are sometimes unavoidable in a real estate transaction but not understanding an estimate of these monetary pieces shouldn’t be one of them.
Interest rates are also fluid. You may get preapproved in June and don’t end up making an offer on anything until October. In that time, interest rates may change. To avoid looking at houses that may no longer work financially, check in with your Lender periodically to ask if interest rates have changed.
2. Be SELECTIVE about the properties you tour.
You may be looking at houses for a while. There is nothing fun about arranging your weekend plans to look at houses, make offers and have them rejected…weekend after weekend. That causes stress, heartbreak, and burnout.
If a home is listed at your max budget and just came on the market, consider giving it a weekend before scheduling a showing. If it’s under contract after one weekend, it will most likely sell for over List Price with strong terms.
Wait 5-7 days and if it is still on market, jump on it. You may not have to compete with multiple offers and may have an opportunity to offer close to list price. If you are only able / willing to make a decently lower offer, consider waiting more like 10-14 days. A seller may entertain lower offers after more days on the market.
3. Don’t wait until an offer to discuss price point and contingencies.
The emotions are high when you make an offer on a property. Don’t let it be the first time you’re considering whether you are OK with covering an appraisal gap, or how much of a deposit you can put down. It gets overwhelming quickly.
Once you start the house hunting process, consider what you may and may not be comfortable with regarding things like deposits, home inspections and appraisal. Discuss options and what these things mean with your Agent. Also, know what an estimated mortgage payment is at different price points, so you are well prepared for what makes sense for you financially.
These things will be fluid depending on the specific property but having a flexible plan will help you stay on track (and less stressed) when it comes time to make an offer.
4. Make sure your Agent does their homework!
Avoid unnecessary house showings by making sure your Agent does their homework.
Is the house at the top of your budget and has an old roof and old furnace?
Is the sale subject to Seller finding suitable housing and you are on a tight timeline?
Are there already 10 offers and you aren’t willing to make a strong offer on this one?
Is there an offer deadline of tonight and you aren’t prepared to make an offer that quickly?
Will the property not go FHA?
Do Sellers want a 30-day close, and you need a longer close timeline?
Is the property right next to a gas station?
Your Agent may be able to catch deal breakers to avoid spending your time and energy looking at a property that just won’t work.
5. Have a Plan B with your living situation.
This is a tough one. Your lease is up in a couple months or you’re selling a house in order to buy…it’s important to have a plan in place if you can’t line things up.
Are you able to extend your lease month to month, if you don’t find a property in time? What is the fee if you break your lease?
Do you need to list your property contingent on Sellers finding suitable housing?
Can you live with family while you’re house hunting?
Some local hotels and short-term rentals allow monthly rentals – is that an option for you?
Understanding your options helps take stress off if finding your next home takes more time than you planned.
Do you want to Buy or Sell but intimidated by the market? We can discuss the market, options and a plan that works for you. The market may or may not change, if now is the right time for you, then it is the right time to buy or sell…
