Are you looking for a home? Have you recently put in an offer on a home and lost out? I’ve been working with buyers recently, and after several attempts at purchasing a home, they are now solidly in escrow. It’s interesting that even during COVID-19, my clients found themselves competing for properties. With low inventory and historically low interest rates, demand is still outpacing supply in many markets.
Worried About Overpaying?
So, what’s my advice to Buyers who want to buy a home, but are concerned about over-paying? First, I do believe that we are likely to see downward pressure on prices. After all, Hawaii’s unemployment rate is over a whopping 22%! With travel bans still in place and many businesses suffering or closing, it stands to reason that real estate will take a hit. So, what is a Buyer to do?
Risk Paying Too Much or Missing Out on the House?
It all depends. Everyone has their own time table and their own set of circumstances. There is no one size fits all. But, in general, after I’ve shared the market trends, economic reports, and predictions from those in the know, I ask my buyers what will they regret more, “Paying too much or losing the house?” I generally tell them that if they plan on staying in the house for 5 to 7 years, they will likely be able to sell without incurring a loss. More than likely, they will experience appreciation. No guarantees, of course. I also remind them about today’s great interest rates and that even if the prices do go down, the savings they will earn due to the low cost of funds will help to make up for it.
Lastly, I remind my clients that a home is a home first. There are intangible benefits that come with buying. How do you put a price tag on the security, stability, and comfort that comes from homeownership? More than ever, those benefits are priceless.
Write a No Regrets Offer
So, when it’s time to write an offer, I encourage them to write a “no regrets offer.” If this is the house they want, then write an offer that has the best chance of being accepted. Write an offer that you will not regret writing. Even if you don’t secure the property, at least you know you gave it your best shot. Far too many times, I’ve seen buyers lose out because they got stuck on price position and forgot the goal. The goal of owning the home they really wanted. I’ve known many people who have regretted not buying. Regretted losing out.
If you want a property, or more specifically, if you want a home, then sharpen your pencil and write an offer you won’t regret. Write a “no regrets” offer. You’ll be glad you did!