Rule 1 - To be a savvy buyer, you actually need to be a buyer. This means you have to actually buy something!
Great! Now we have that cleared up we can start breaking down the ‘Do’s and the Don’ts’ of buying!We’ll start off by calling out the ludicrous tactics out there. Again, we don’t mean to be brash, but as honest professionals it’s our responsibility to call out the BS from the truth.
SILLY BUYER TACTIC NUMBER 1
Bidding Way Under Assessed Value - We’re not entirely sure where this tactic came from but some buyers have adopted the “Last years assessed minus 20% tactic”. In reality, it’s not accurate. It may make you feel good, like you’re playing a power move, but 9.9 times out of 10 it’s just going to be turned down. If you’re lucky, you'll get a counter offer at a more realistic price, only if you’re lucky. This tactic leads to not actually buying anything which therefore equals a Silly Buyer.
SILLY TACTIC NUMBER 2
Automatic Low Ball - This morning I had a REALTOR call me and ask if our clients would accept a low ball offer. For some context, the listing discussed had been on the market for two weeks, huge traction through showings and Open Houses and we already had an offer we were finalizing. When I asked ‘why’ a low ball offer, the realtor responded with ‘It’s what my client wants as it’s a buyers market’. Nonetheless we told them no thank you and it turns out they have tried this with multiple homes (an amount in the double digits to be exact) and not been successful with any. Can you see the trend here ….. ? There is certainly a responsibility for the realtor in this situation but we talk more about that here.
SILLY TACTIC NUMBER 3
Finding Perfection And Waiting - If you find your perfect home and it fits your budget but you wait. You are running the risk of waiting because you “Think It Will Be Cheaper”. You are walking a tightrope and run the risk of that property either coming off market, or selling. Don’t be fooled in the media talk of ‘NOTHING’ is selling. Unfortunately you could learn this the hard way. A lot of people are finding that out right now because they believe they have all the time in the world. Don’t forget Rule 1 - To be a savvy buyer, you need to actually buy property.
We’ve spoken about how to buy multiple times. You need to review the CURRENT, keyword current, market statistics. This is what will tell you where your offer should be and how to get success. Acting with haste, along with being informed is THE best way to succeed right now. It’s not uncommon to find market value is way under the current listing price when you dive into the sales history. This gives you the justification and ammunition to go in with a market value offer and also the why. The seller may accept based upon your information or they may decline. Then this way you know what your options are and if you are paying market value or above.
Take some time to go through these numbers with your REALTOR and what they mean. Market Value has already taken a plunge since the hay day so paying market price is not a loss, it’s smart tactics to purchase something today, on sale, that is going to 100% be more expensive in the coming years.
That concludes our savviness today folks! As always, thanks for joining and we love to hear your feedback. Shoot us a follow on social media too! ;)
Until next week,