You Say You Really Love This House. Well I Can’t Tell By Your Offer.
It’s really sad to see a prospective homebuyer lose out on a home especially when they could have been making plans to move in it instead of making plans to move on to find another house.
If you are in the market for purchasing a home, your quest begins with two things:
- A SOLID pre-approval letter and
- A real estate agent that you can trust.
Armed with a SOLID pre-approval letter, your real estate agent will be able to identify the best possible properties that meet your criteria and your price range. The word “range” here is very important.
It is not unusual for an agent to select properties that may be slightly higher than your level of pre-approval, but more than likely, the agent has good reason for selecting those properties. This behavior on the part of the agent is not our cue to start looking for properties that are even higher thinking that if the agent can look at homes that are above your price range then so can you.
By doing you will only lead to frustration when you start making offers that are well below the asking price. In all likelihood. When making lowball offers, 2 things are likely to happen:
- A good agent will advise you that there is no evidence to support your offer and ask you to reconsider
- Your agent will support your offer no matter what evidence there is to the contrary
- As a result of #2, you’ll be making a lot of offers that will likely be rejected.
Hopefully you’ll be working with an agent that isn’t afraid to tell you the real deal of real estate which may not be what you want to hear. But it serves no good purpose to have a “yes man” as a real estate agent (unless of course you don’t like hearing the truth).
But if what you really want is to purchase a home, it will pay to listen to the best advice that your real estate agent has to offer (even if it isn’t what you want to hear.
If #’s 2 and 3 happen often, you should do 1 of 2 things:
- Find another agent whom you will respect more
- Consider the possibility that you are either afraid that an offer will be accepted or that you don’t really want to buy a house.
In either case, reality must eventually set in.
But when dealing with an agent in example #1, please don’t act surprised when what happens is exactly what your agent said would happen.