How to Lose a House in 10 Days
Home buying is arguably one of the most stressful purchasing experiences in adult life. Why is the process so draining? Unfortunately, there are myriad of issues that can make a deal fall through – especially if you aren’t working with a professional agent. RE/MAX has 10 ways you might lose out on your dream home and how working with an experienced RE/MAX agent can help you avoid them:
1. You don’t have enough saved up for the down payment
Surprise! Homes are expensive. In addition to closing costs, there can also be unexpected fees around every corner. Make sure that you have significant cushion savings in addition to whatever you plan on putting down for your house-you never know how these things will play out.
2. You don’t have your ducks in a row
Staying organized is essential when you’re house hunting. Are you serious about the bid you’re putting down? Make sure that you’re fully aware of all deadlines, contingencies and paperwork involved in moving forward with your home purchase.
3. You’re shopping way out of your budget
As Andie Anderson puts it in How to Lose a Guy in 10 Days, “You can’t lose something you never had.” Looking for houses that are priced outside of your budget is the first way to “lose a house” – you’ll lose out on a home that you never had a chance of buying. Pre-plan for the strong possibility of putting in an offer above the asking price. This may mean looking at homes listed a few thousand below your budget to create padding in your budget to make a higher offer.
4. You lose a bidding war
Quick, decisive, assertive-these are all necessary traits to win a bidding war. Working with an experienced RE/MAX agent who can negotiate on your behalf is a great way to ensure you play your cards right. Remember, all is fair in love and [a bidding] war.
5. You come down with a bad case of buyer’s remorse
What’s the most obvious symptom of buyer’s remorse? Cold feet. Sales contracts fall through all the time because buyers back out at the last second, succumbing to the fear of such a life-altering decision. Keep your wits about you and trust your gut.
6. You close too slowly
Sellers are trying to get sales contracts through as swiftly as possible. In this climate of high demand and limited inventory, residential real estate is a hot market. There will almost always be someone behind you, vying for your potential future home – if you really want it, work hard to satisfy the seller and make things official as soon as possible.
7. Your inspections aren’t timely
Speaking of closing quickly-inspections are sure to take some time. If you’re lucky, all you’ll need is one inspection. If an inspector discovers any problems, you’ll have to start making appointments with specialists to look further into the house’s issues. This is a race against the clock, limited by the timeframe set out in the sales contract. Don’t waste any time getting the inspections going or you might find yourself without a house to inspect.
8. Your seller isn’t happy with their appraisal
An appraisal that comes in lower than anticipated is always taken by the seller as a personal blow. This proves to be an issue for the buyer, too. Either the seller will become difficult or, even worse, you’ll have to pay the difference between the appraisal and the sales price out of pocket. Make sure to keep communication with the seller open and diplomatic when frustrations are running high.
9. You can’t secure a mortgage
You’re so close to the finish line-and then your mortgage application is declined. Apply for pre-approval so the seller knows that you’ll be able to buy their home. If you are proactive throughout the buying process the odds of you losing the home are significantly slimmed.
10. You don’t have an agent on your side
None of the above issues are simple. Having someone on your side that knows the ropes of the home buying process is the most valuable tool in your home-buying box. Don’t go it alone-let a professional help you with the most important purchase of your life.