How to Avoid These 3 Costly Condo Buyer Mistakes
It’s important to do your homework when you’re buying real estate. Learn how to avoid these 3 costly condo buyer mistakes by researching and working with a good agent.
1. Offering the Wrong Amount
Depending on the situation, buyers can offer too much on a condo, or too little and lose the sale. Some buyers pay too much because:
- Buyer offers too much because they went off emotion. Buyers tend to pay too much when they fall in love with a condo and gets attached too quickly.
- Buyer fails to notice important differences after using the wrong comps when deriving a price. Differences in layouts, views, and other details can make a big difference in price.
- Buyer offers too much thinking there’s a competition
Some buyers will offer too little and regret it later. They might offer too little because:
- Buyer uses the wrong comp when deriving a price, but the condo might really be worth the difference.
- Buyer thinks they should always offer a certain amount below the list price.
- Buyer makes an insultingly low offer and the seller might refuse to work with them again.
Make sure you do your homework and check with your agent before making an offer on the condo you want.
2. Not Learning What is Important to the Seller
You would think that the price is always the most important term when it comes to a sale, but that’s not always the case. Sometimes the seller might need a quick settlement. They might be moving or closing on a new home. Ask the seller, or have your agent ask. Having a good agent will be helpful because they’ll know the right questions to ask to help you with your sale.
3. Failing to Get Pre-Approved for Financing
Getting pre-approved will save you a lot of hassle in the future. If you aren’t pre-approved, it could hurt you when you go to make an offer. A lot of sellers won’t respond to offers that don’t come with a pre-approval letter. This will put you at a disadvantage if you are competing against other buyers.