As the real estate market continues to heat up in the Orlando FL area, home buyers face a few challenges. By knowing what those challenges are, you can avoid mistakes that will leave you with less money in your pocket, as well as avoid buyers remorse, (as explained in detail by Kyle Hiscock.) Mistake #1: Not Knowing About the Real Estate Market in Your Area
As I stated above, it is currently a seller’s market.
• A seller's market happens when there are more buyers than homes for sale. Since supply is less than demand, homes will be higher priced and more attractive to the sellers in the market. When armed with the appropriate information about the real estate market you are buying in will help you make better decisions and have a better strategy in place when it comes time to make an offer. Mistake #2: Buying on Impulse
When buyers are aware of the market being in the home seller’s favor, it is common to buy the first home you see simply because it is available and you’re afraid that if you don’t scoop it up, someone else will. Now, I’m not saying to sit on your decision to buy, but you must take into consideration all aspects of buying that particular house before making an offer. This is where having the best Realtor for your situation will come into play. Mistake #3: Taking Too Long to Buy
In mistake #2 I talked about buying out of desperation or on impulse. On the opposite end of the spectrum, taking too long to buy is just as costly. Consider this: the house you are considering and are waiting to make an offer on could be (and probably is in a seller’s market) the one someone else saw and has decided to put in an offer on today. Moral of the story? Be prepared to make an offer…
• Have your pre-approval
• Know how much house you can afford
• Know your (Florida) home buying costs
When you find a home you love, gather all the necessary information as soon as possible and make that offer as soon as possible! Mistake #4: Paying Too Much
Bidding wars are more common during a seller’s market because there are more buyers looking for homes than there are homes for sale. Multiple buyers bidding on the same house will drive up the selling price. You can avoid over-paying by making sure you are aware of the value of the home and the area comps, and knowing how to make your offer stand out.