J. Dudley Schiel

Thursday, October 29, 2009

Scared Stiff: Preventing the 3 Biggest Fears of Buyers from Becoming a Reality

Halloween conjures up images of witches and warlocks, ghosts and goblins and all things creepy. These scary creatures might frighten the average kid on the street but it takes buying a house to scare an adult. Of all the worries that make buyers shiver, three fears can make even the bravest adult drop his candy and run. These are the three biggest fears that I encounter with buyers and how each fear can be prevented from becoming a reality:
1. Not getting the house: Finally finding the right home but losing it either to another buyer or because terms couldn't be worked out with the seller is every buyers biggest fear. These three things will help you avoid not getting the house once you have decided it is the one:
Be prepared: Be ready to purchase before setting foot in the house so you can act fast. This means being pre-approved with a lender and having a definite price range and budget so when the house comes on the market you can make an offer quickly without having to decide if you can afford it before submitting an offer. Even with the high inventory in the Nashville market right now, its important to act quickly when you find the right house. If you like the house chances are someone else does too.
Be knowledgeable: Know the market value of the home based on comparable sales in the area and decide what the home is worth to you so you can make an intelligent offer you are comfortable with.
Be realistic: Make a fair offer that has a good chance of either being accepted or getting a generous counter offer from the seller rather than a shot-in-the-dark offer that risks being rejected or jeopardizing negotiations by insulting the seller.
2. Missing out on a better house: Buyers are afraid of purchasing a home then discovering that a better house with greener grass has appeared or that there was a better home on the market that they never saw. These three things will ease the fear of missing out on the perfect house:
Assess your needs: Taking a full assessment of your needs will not only save you valuable time by only viewing properties that are right for you but it will also ensure that the home you end up with will meet your basic criteria even if it is not as good as the newly discovered home.
Stay open minded: Be open to viewing neighborhoods in and around Nashville that you might not have thought about. Most missed opportunities come from overlooking an area rather than a particular house.
Take your time: Buying a house is a major decision. Do not feel like you have to rush into making an offer on the first house you like. Make sure you have viewed all of the homes that fit your criteria before you make an offer.
2. Paying too much: Everybody loves a Blow Pop but nobody wants to be a sucker. Buyers don’t just want a good deal. They want the best deal. Here is how to avoid paying too much for a home.
Know the value: Having up to date information on the Nashville real estate market and being aware of the comps for the home are crucial but more important is deciding what the house is worth to you. After all, a home is only worth what a buyer is willing and able to pay for it. If you have been educated on the market and you feel like the home is worth what you are paying for it, then you’re chances of overpaying are slim.
Stick to your max price: Figure out how much you are willing to pay for the home before you make an offer. Emotions can get the better of you once price negotiations are under way so decide your price limit ahead of time. If the sellers will not sell the house for what you think it is worth then be prepared to walk away and find another house.

All of these fears are valid but none of them have to be a cause of stress. With proper preparation and up to date market knowledge all of these fears can be alleviated and prevented.
If you are thinking about buying a home in Nashville please give me a call and I will walk you through the transaction step by step so that these fears do not become a reality.

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