1. Not making your best offer
The motivation to buy what we want for as little money as possible is deeply engrained in us. So when most people see the listing price of a home, they naturally wonder what they can really get the house for. Offering lower than asking price is a reasonable strategy, especially if the house is overpriced compared with other similar homes in the area, or if it's a buyer's market with lots of available inventory. But trying to get a deal when you're in a seller's market might not be the best tactic.
2. Over-Analyzing the Purchase Price
Just as impulse-buying a home is risky, over-analyzing a home purchase in a seller's market is ill-advised as well. Once you've determined the type of home you want, the location you desire, and your price range, and finally find a home that meets your qualifications, don't wait to make an offer.
3. Working with an inexperienced agent
In a seller's market, it benefits buyers to get all the help they can. If you have a seasoned agent on your side, you'll probably have a better chance of getting the home you want.
4. Not being pre-approved for a loan
You might know that you'll be approved for a mortgage loan based on your steady income, your low debt-to-income ratio, and your high credit score-but the seller doesn't know that. The only way to prove to the seller that you're a qualified buyer is to be pre-approved from a lender.
5. Not being prepared for a bidding war
If there is ever a time when a bidding war could be imminent, it's during a seller's market. No buyer wants to be involved in such a battle for fear of possible going over budget. Search below your max budget to leave room in case of an over-asking bidding war.
6. Not learning from your mistakes
There's no shame in learning that your offer has been declined, but it's easy to get frustrated if your offers are declined repeatedly. Learn from your last transaction so that you can move in to your dream home.