With the new mortgage rates announced we are gong to possibly see another selling and buying frenzy in the coming months. If you are looking to buy a house, guess what, its time! I know I said this last year, buy now before prices and rates go up again! For some people at the edge of qualifying, start searching. If you are too close to that edge of qualifying, maybe this is a sign that you are not ready yet to buy a property. Sometimes it is better to wait to buy, you don’t want to get yourself into a situation if something changes suddenly in your finances, plus you might see yourself in a bidding war.
The process of buying a house is very emotional. My greatest strength is keeping a cool and calm demeanor when there is a bidding war with my clients. There are a few rules that I follow so my clients don’t get into a bidding war they’ll soon regret. Every situation is different, but these are good suggestions & alternatives to going crazy for a house which is probably not that unique if you start looking around a bit.
1. Avoid it – I know its easier said than done. The best way to avoid over paying for a house is to move on. Look for something else.
2. Be logical – After moving on, take the money that you would’ve over spent and think about buying something that you thought needed too much work. Now you can renovate that house which probably is cheaper and you can renovate to suit your needs exactly. You can also take some pictures of the house you are moving on from and copy the features you liked.
3. Present the offer – Tell your agent, or if you are buying the house yourself present it to the sellers. This will avoid phantom offers. If there is truly another offer, there most likely will be another agent and clients. Seeing is believing.
4. Be aggressive, then walk away – Put in your best offer, and if they don’t accept it, walk away. Do not get bullied into adding tens of thousands of dollars to your offer when you can’t afford it in the end.
5. Don’t fall in Love – This is the way to losing your shirt and over paying for a house. Don’t start dreaming of you living in a house before anything is accepted. Once you have documented paperwork, then start falling in love with your house.
Remember, it can take years to retrieve the value you overpaid in some neighbourhoods. Don’t go nuts, you will regret it when the bubble cools down in a few months.
Would you go to a McDonald’s and pay an extra $2 for a Big Mac? Some people possibly would. Now when you went to pay for the Big Mac the attendant says its not $2 extra its $4. Would you still buy it? Or would you walk across the street to Burger King pay regular price, add fries & Cheese with that.