People who have gone through the homebuying process are often eager to give advice. But too often, these so-called insider tips may very well be outdated.
Realtor.com® recently highlighted some of the most common advice home buyers may hear from their peers that no longer applies in the current housing market, including:
“Wait for spring.”
Buyers shouldn’t feel like they’ll be at an advantage if they wait for the busiest season in real estate—it may be the opposite, real estate pros say. “Yes, there’s more inventory [in the spring], but there’s more competition for it, and sellers are more optimistic about getting a higher price then and so less willing to negotiate,” Sebastian “Seb” Frey, a real estate broker in the Silicon Valley area, told realtor.com®. “Buy when you find the right property that will meet your needs for today—and the next five to 10 years.”
“Wait for home prices to come down.”
Some aspiring buyers may be told to wait until home prices settle some before they jump in. But they can’t forget that rents are likely also high.
“Paying high rent now and hoping that you’ll find a better deal two or three years down the road [won’t work],” Frey says. “The better advice is to make a smart buy today for a property that will appreciate over the longer term.”
“Make a lower offer so you have room to negotiate.”
Some buyers may be told by their peers to make an offer that’s less than what they’re actually willing to pay for a home. Then they’ll have room to negotiate.
“The housing market in 2019 will be slightly different from what we experienced in 2018 when it comes to pricing and negotiations,” Howard Margolis, an associate real estate broker with Douglas Elliman in New York, told realtor.com®. “In regards to negotiations, what was once the premise of offering 10 percent to 15 percent below asking is not necessarily the case anymore, and it’s a strategy I would not recommend. In today’s market, a truly motivated seller is less inclined to engage in the back-and-forth of a real estate transaction, and listings are priced closer to the final sales price.”
Instead, home buyers are urged to base their offer on sales of similar sales in the area.