When the market is hot, first-time Menifee buyers tend to panic. If you’re looking to buy in a hot market, here are five mistakes first-time Menifee buyers make along with tips on how to avoid them.
Sellers can smell desperation. When you’re desperate, you take all sorts of risks, such as making impulsive offers (that might get accepted), and you end up chasing houses that you really don’t want. Even if you go to an open house, you don’t have to make an offer. Enjoy the experience and try to learn something from it.
Once you think you’ve settled on what you want, then you can chase it.
If you aren’t ready to make an offer the second you walk into an open house, then you’re going to miss out. Sure, you don’t have to make an offer on every single home you visit, but if you have to wait to update financials, then you’re going to miss out on great homes.
Make sure everything is updated so you can make an offer quickly.
Burying your head in the sand won’t solve anything. You need to be aware of what is going on in the Menifee market as well as with your own family.
Your family is a bigger determinant when it comes to the kind of house you want. Are you growing? Settling into your golden years? Working on a big career move? Planning for your future family and its needs is important to the buying process.
You should also look at trends in the Menifee market. What’s hot right now? What was hot before? How has the market changed over the years? Doing your research will help you decide on rehab opportunities and new construction.
The worst thing Menifee buyers do is make a guess on finances. When buying a home, you shouldn’t be making estimates or thinking of ballpark figures. Buying a home is more of an exact science, and if you’re not sure how much you can afford or whether you’re approved for a loan, then you’re going to have a hard time landing a deal.
Go over all your finances and see how you will be able to handle the next years with a mortgage payment. You need to look at your saving accounts, how much you’re making, how much school costs, what insurance rates might be and how much you may spend on recreation. All of these things will affect how you will be able to afford a home.
In a hot market, homeowners may get caught up in a bidding war. This usually happens when multiple offers come in for the same home. This will often result in Menifee buyers paying way more for the house than it’s actually worth.
When you start bidding on a home, look at its comps and see how they stand up to what you’re going to pay. If your bids get too far above what the home is actually worth, then it’s time to drop out. Use these comps to judge how much you should be bidding for the home.