Top 5 Mistakes Intellignet Home-Buyers Make & How to Avoid Them
Today, real estate buyers in Naples, Florida and around the world are more educated and savvy than ever. It’s not surprising when a buyer asks for a list of recently sold comparable sales in the neighborhood, days on the market (DOM) a property has been listed or price reductions and other details found in a properties “listing history.”
Even with the proper tools in hand, intelligent buyers can make big mistakes with detrimental effects. Review these common mistakes others have made and avoid them entirely the next time you buy a home.
Mistake #1 – Making a low-ball offer just to see how low a seller will go.
This hardly ever works. For my clients (you know who you are) who are “unapologetic bottom fishers,” don’t worry. Of course I will continue to put in any offer you’d like. I will stick with you till the cows come home as long as you’re loyal and stick with me.
For the rest of you, going around town making low-ball offers only upsets sellers and eventually you become known as, “that guy who makes low-ball offers on everything in town.” Don’t get me wrong, this is a buyer’s market and you can and should make offers lower than the asking price on most properties. To avoid going too low, study the recent comparable sales in the last 3 to 6 months along with the average percentage below asking price that most homes are selling for in that neighborhood. This percentage is available to your Realtor through the local MLS statistics. In most Naples communities today, the average percentage off the listing price people are buying homes is about 11%. Remember, unreasonable low-ball offers tend to turn sellers off and you may not even get an answer or counteroffer in return.
Mistake #2 – Thinking foreclosures or short sales are better deals and ignoring standard home sales.
Standard real estate sale in Naples, properties that are not distressed sales, can often be the best deals in a community. The short sale you may think is so great may not look so great after six months of waiting for an answer. Then after all that wasted time, the bank could come back with a higher price than a standard home right next door is priced right now. Also, a foreclosure being sold “as-is” may have significant repairs to get it up to “livable condition.” These costs could bring your great foreclosure deal to a higher overall price than the standard home for sale across the street. Weigh all your options, including regular Naples homes for sale, before proceeding with any distressed property.
Mistake #3 – Meeting or Saying too much to the seller.
At White Sands Realty, when we make an appointment to show a home we always do our best to make sure the seller is not home. No seller in their right mind should want to be there in the first place. Buyers do not feel comfortable with the home owner looking over their shoulder.
If a seller is around, often a buyer will think they are helping their future negotiations by commenting to the seller about all the things they will need to fix before she could possibly “live” here. Statements like this only offend the seller and make them less likely to ever want to sell their home to such a rude, inconsiderate buyer. If items in the home need to be updated or replaced this can be relayed in a tactful way between Realtors. Respect a persons home as you would want yours respected.
On the other hand, commenting on how much you love the home can have equally detrimental effects. A seller may pick up on this and believe he can get more for his home from you because you, “love it so much.” The golden rule when it comes to viewing any home for sale is, “keep your hands, and your mouth, to yourself at all times!”
Mistake #4 – Missing hidden defects before closing.
This is one of the most expensive mistakes any homebuyers can make. Every home should be professionally inspected regardless of whether it’s sold as-is or it’s brand new. We recommend our Naples home buyers always have the major home inspection done by a professional like House Master. We even have specific inspectors we prefer over others for their detailed and no-stone-unturned approach. When needed, there are additional inspections for mold, radon, pool equipment and termites. These inspections should be completed by an expert in that field. Spending $350 to $900 in inspection costs is nothing compared to thousands you can save in future repairs and headaches. Home inspections are not something any home buyer should skimp on.
Mistake #5 – Wanting a “great deal” but falling in love with one home.
Every buyer today wants the deal-of-a-lifetime on a home. It’s a buyer’s market, so why wouldn’t you? The mistake made is not wanting a great deal, it’s choosing just one home to make that deal a reality. Falling in love emotionally with a single home makes you depressed and leaves you with nothing when you don’t get that great deal or buyer’s remorse for paying more than you planned on if you do get the home.
Instead, we recommend narrowing your search to 3 Naples homes that you can live with if you get that great deal on any of them. If plan “A” doesn’t work out, then you have plan “B” and “C” to fall back on. This prevents budget busting and takes some of the emotion out of the purchase.
Avoid the pitfalls above and you’ll be on your way to finding the Naples, Florida home of your dreams with the deal of your dreams to go with it!
Mark Weber is a Naples Realtor, Broker & Owner of White Sands Realty in Naples, Florida. He is a 30+ year resident of Naples and specializes in finding people Naples homes on or near the beach and waterfront. If you are interested in Naples real estate or have a question about this article please contact him through email.
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