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The mortgage process

Don't make these 5 mistakes if you're home-shopping in a seller's market

By Shelley Sines

February 2017

Right now the number of homes for sale across the country is low, especially “starter” homes in a first-time homebuyer’s price range. That means as a first-time homebuyer, you’re not only looking for a home you actually like, but you’re also looking to beat out all the other homebuyers who also like that home and want to make an offer on it, too.

If you want to land your dream home, it’s time to roll up your sleeves and get down to work. You’ll need to be strategic in order to get what you want.

Here are 5 mistakes you should avoid if you’re serious about getting into the home you want:

  1. Waiting too long to make an offer. You’ll need to move quickly if you find yourself captivated by a particular property. And while you don’t want to make an impulsive decision you may regret, if you wait too long to put in an offer on a home you’ve fallen in love with, you may lose out to more motivated borrowers. In a seller’s market, home-buying competition is fierce, and there is likely at least one other interested party waiting in the wings.
  2. Skipping the preapproval process. A preapproval means your finances and credit have already been vetted by your lender, and proves to the seller that you’re serious about your offer.
  3. Working with an inexperienced real estate agent. It will only be to your benefit to work with someone who can give you all the help you can get. If you have a seasoned agent on your side, you’ll probably have a better chance of getting the home you want. As a first-time homebuyer, you might not know what makes an agent “good,” so do some research, and don’t forget to ask for referrals from your friends, family and co-workers.
  4. Having unrealistic expectations about the home inspection and any repairs. The more competitive the market, the less likely a seller will be to make repairs or accept a lower offer. If the repairs are minor and not a deal-breaker, you may have to bite the bullet on them.
  5. Low-balling the price. A seller’s market is too competitive to try negotiating a bargain. If it’s the home you really want, open with your best offer

Related to This

Fritz Fleurismon •

Thank you so much

Shantay Barnes •

This provided a lot of useful information.

Monique Dorsey •

Very informative.

James Rooks •

I enjoyed this course it was very info. Some of the information I already new something I didn’t know. So we do not have a real estate agent so we bought from the homeowner. I look forward to buy my new home. And living in the neighborhood in the country . This was new to me I never had to take a course before to buy home.

Ekrem Becirevic •

Great information!

Karina ovalles •

This class were helpful

Jason G •

This was informative and confirmed my concerns about purchasing a condo.

Breeonn Jones •

Very helpful information

Claudia A •

Very helpful hints.

Manuel briseno •

Helpful hints.

Chastity Ash •

Very Helpful.. Thank you,

Deveron Chad Charles •

Helpful Hints

Veronica lemus •

Very helpful information, I’m ready to buy!!

Kabiria Diaz •

I am ready to buy. Great information.

Richard D Auger Jr •

I'm ready to buy

Alberto Alejandro Bueno •

Very helpful tip.

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Shelley

Read more articles by Shelley
Shelley Sines has been writing for MGIC since she graduated from college in 2007. Currently raising a sweet little family with her husband in the suburbs of Milwaukee. Happiest when cooking or gardening. Competitive Scrabble player. Enthusiastic about road trips, wine, good TV.
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