Here we are in the middle of a pandemic and in the hot a humid part of the summer. What does WBUR do? It publishes a “scare the buyers into giving up their rights” article.
It is seller propaganda. It is not helpful to buyers. The advice “for buyers” mostly serves the seller’s needs.
What’s wrong with these 5 real estate tips from WBUR?
Prepare To Waive Contingencies. No, no. no, no, never.
There is a big risks to waiving your mortgage contingency. In brief, you could lose your deposit if you do not close on time due to a delay or denial of your mortgage. That deposit is typically 5-10% of your purchase price. There are things that can foul your mortgage that are out of your control. Can you afford to lose $25,000 on your $500,000 offer? Here are some details: Mortgage contingency.
Experienced exclusive buyer’s agents, like our staff, know a lot about houses. We learned by watching home inspectors. Those inspectors know even more. Can you afford to lose $30-50,000 or more on a major, undisclosed and uninspected defect in the property you just bought? Here are some details: Home inspection.
Ask yourself: Why is it that sellers are pushing buyers to purchase without being able to get a professional inspection? Is the “buyer’s agent” you hired also telling their sellers to push for no contingencies? If so, are they really on your side?
Check The Basement! Seller says you have 15 minutes, good luck!
If you hire the right agent, that agent will help you separate the easy-to-change aspects of the house from the expensive-things-to-change aspects. That agent will be teaching you what to look for, in terms of long-term maintenance and repair.
Many maintenance items become apparent in a basement, that’s true. However, if you are waiving home inspection, do you really think a cursory look during a 15-minute showing is going to yield full knowledge of what you are getting into?
When you are looking at a house, it is important that you check for the things that you want, especially the things on your “must have” list. In the frenzy being created by sellers and their agents, it is easy to forget your goals.
The current market is a hurry-up condition created by sellers and their agents. There is no reason that houses must have limited showings and short deadlines for presenting offers, except that sellers and their agents are choosing to market properties this way. The hurry-up makes it easier for buyers to overlook their housing goals.
Settle For Less?
There is truth in the law of supply and demand. Yes, that is stacked against buyers right now. However, when you are spending $500,000 or more for a property, this settle for less meme is pretty insulting.
Instead, enter the market well informed about what the market is bearing. A buyer’s agent who is really representing a buyer will provide a comparative market study that will show you what a house should sell for.
Even in this hurry-up environment, our agents are getting offers accepted, with home inspections and mortgage contingencies, some below asking price. Not all our offers are below asking, but some are. All our offers have home inspection and mortgage contingencies (for people who can’t buy for cash).
Find The Right Agent
The advice is to hire an agent who knows the market. Okay, right. That’s a no-brainer. Pretty much any local agent fits that bill.
Does your agent focus on getting the best property for the lowest price? Does your agent have a supervisor who specializes in getting buyers the best property at the lowest price? Or, does your agent also work for sellers who ask for hurry-up sales and that buyers forfeit their rights?
We are the right agent for buyers.
- We work only with buyers. We are not contributing the loss of rights by advising sellers to bully buyers into paying more and foregoing their rightful contingencies.
- Aim for the lowest possible price.
- Require our clients get a home inspection or pre-inspection before signing a Purchase and Sales Agreement.
- Inform our clients about the financial risk of waiving your mortgage contingency. It can cost you tens of thousands of dollars.
- We are having the best year, ever, and every buyer has had contingencies (home inspection and mortgage), and have bought being fully informed about the market value of their property.
- We are having our best year ever, working with buyers who want to get the best possible price and have their rights preserved.
Don’t Fall For FOMO
Fear of Missing Out. I will agree with WBUR on this one.
Even in a seller-favoring market like this, you can pay a fair market value for a property, with your rights intact. We’ve been doing it all year. We will keep doing it, even when agents are giving the buying public false advice about what they have to do to buy a home in Massachusetts.