The first quarter of 2022 has passed. Our new normal is cash offers, quick closings, and a dangerous land of waived contingencies. I am going to hazard a guess that if you are reading this, you are a home buyer in this ever-changing, unprecedented market. I will further surmise that you have not been the winner in a multiple offer scenario. Lastly, you are probably starting to doubt both yourself and your buyer’s agent. In short, you are most likely suffering from buyer fatigue.
What is it? And when does it occur? Buyer fatigue happens after you’ve lost countless times in multiple offer situations. It’s what you feel like when you make an “over the top offer” only to find out that you have lost out by a considerable amount? Have you made a half dozen to a dozen offers without getting one accepted? Well then, you may just have buyer fatigue.
What can one do about buyer fatigue?
So, what is one to do about buyer fatigue? Welcome to the new dynamic where homes don’t sell at a price that relates to relative value. Today, homes sell at a price where a willing buyer meets a willing seller on both price and terms. Currently, the terms are usually in the favor of the seller. This means the buyer meets preferred closing dates or timelines amongst others. Until a buyer understands this, they will continue to lose out in the multiple offer world. So, the first thing that a buyer needs to understand is that their offer needs to eclipse the other offers and be comfortable with that sort of math. Hence, the new normal.
Understand the market shift.
The 2022 pricing on recent real estate transactions is a bit of a head-scratcher. But we do know that other buyers are willing to pay up for certain types of homes. And this is leading to new price levels and trends. I have suggested to buyers to think about their anticipated time frame in the home under consideration. Time has historically been kind to those who pay up for a home in the long run. Time can help mask an aggressive purchase price. Conversely, time can be cruel to those who have to make decisions within a shorter time frame. If you think you may have a relocation or a move in the near future, then paying up may not be your best choice. In other words, if paying up is not in your timeframe, then sometimes you win by losing [the bidding war].
Equip yourself with the best resources and hire the best agent:
Ask the following questions:
- Do you have a strategy for your offer?
- Does your agent offer a market analysis on the home you are considering?
- Do you have market data at your fingertips?
- More importantly, does your agent know what you really want?
- Can your agent source that home for you before the house is on the market?
- Does your agent have strong relationships with agents across the market you are looking within?
- Lastly, where are you (the buyer) in the pecking order?
- Are you your buyer’s agent’s top priority? Or are you a number?
The accepted offer is the goal of the home buyer with buyer fatigue. But don’t let the buyer fatigue get your guard down. Keep after your accepted offer with the same curiosity you did as a home buyer. Ask questions and challenge assumptions. This will finally end your buyer fatigue.