Have you been out there looking to buy a home in our area? Are you frustrated by the incredible competition for the limited number of properties? You are experiencing the toughest market for buyers in the last ten years.

Perhaps you have read my articles on market tips or how to buy value and followed my advice. You may believe you are doing everything right, but, despite this, you feel it just isn’t working. Today, in order to buy the home you want, there is one more thing you must do. You have to be willing to endure.

Endurance

This market is not for the fainthearted. It is an endurance contest. Those who are committed to buying will persevere. 

One of the couples I am working with is a model for a positive, winning approach. When I met them in July they were starting to become educated about the market and the buying process. Their lease was not up until December, so they were going to take the extra time to learn as much as possible.

During this period, they explored neighborhoods and diligently went to open houses. We talked once or twice a week. As the months passed, they felt more and more confident they would be able to make the right decisions when the time came.

In October, I told them about a home in their price range that had just come on the market. They were happy at how well it fitted their needs. 

Not unexpectedly, there were multiple offers on the property, but they were prepared. Armed with pre-approval for an 80% loan, they made an offer substantially higher than asking (actually, it was the highest bid). Unfortunately, they were beaten out by an all cash (no loan) offer with a quick close. 

Although they were quite disappointed, this did not deter them. If anything, their position has been strengthened by the knowledge they gained from the experience. Intelligent, optimistic and realistic, they will succeed.

It’s also difficult for your agent

I know of another couple who made an unsuccessful offer. Their response was to change Realtors. Several months later, they wrote a contract on another property, but lost to a higher bidder. 

In the meantime, prices for what they wanted climbed well above the maximum they had set for themselves. Week after week went by where all the new properties that could have worked for them exceeded their top price. Listings at their price or lower did not meet these buyers’ standards. 

At least once a week their agent would call with words that were dreaded by her just as much as by them: “There is nothing new to talk about in your price range.” After more than six months of dedicated work by their agent, they decided to again switch Realtors. When the agent asked if any homes had come on that she had missed, they said no. So why were they making the change? They hoped a new agent would find them a house.

This couple clung to the fact they had once found a suitable home in their price range. What they refused to see was that the market had changed. They could no longer afford what they wanted. Their choices were to scale back their expectations, look in a lower priced area, or drop out of the market. Instead, they fired their agent.

Working within the system

As I tell clients, my job is to educate them about this ever-changing game of real estate. If you want to buy a house, railing against the system does not work. The more knowledge you have of how things operate, the better your chances of a happy ending. 

There is a “rhythm” to how and when homes come on the market. In most cases, the property will go through at least three separate exposures (listing office tour, broker’s tour, public open house) before the seller will entertain offers. The order is not critical and depends on what day of the week the official marketing begins.

Even if you are the first to see a new listing you love, the seller will probably not be listening to offers for a number of days afterward. It is to the seller’s benefit, of course, to expose the property to more potential buyers. This increases the chance of multiple offers.

Getting upset because you are being “used and manipulated” by the system is not helpful. Accept the fact that you will probably not be the only buyer interested and capable of buying a particular home. This is just one more example of how life can be competitive.

Keep pricing in perspective

In multiple offer scenarios, the accepted offer is usually well above asking. Do your homework about the pluses and minuses of the house itself and compare that (with your agent’s help) to comparable prices in the neighborhood. 

Before determining your offering price, ask yourself some questions. How well does this house work for me? Am I settling out of sheer exhaustion or could I be happy living there for a long time? Is this one of the top locations in my price range? Answer these questions honestly, not emotionally, or you may end up making a big financial mistake.

Even if you adore the home, are you willing to pay any price just to own it? If you overpay now, you may eventually end up selling at a loss. This is especially true if you must sell during a down stage of the market cycle.

Always remember: your home is not just a place to live; it is an investment, and might be the best or worst one you ever make. Be careful not to be overcome by the thrill of the chase and the excitement and emotion of an auction atmosphere. It can be like gambling — in this case, winning is really losing. 

Final thoughts

When you decide to be a buyer, you knowingly jump on the emotional roller coaster. If you keep the process in perspective, take responsibility for learning what you need to know, and are willing to persevere, you will be successful in your quest.

Related Articles: How To Buy Value, and Hot Market Tips, Buyers