We are currently experiencing a very competitive seller’s market with low inventory and many active buyers. This quickly drives potential home-buyers into the frustrating realm of what I like to call “buyer Burnout’. Buyer burnout refers to buyers who have seen so many properties, written too many unsuccessful offers, and are flat out exhausted with the buying process. Searching for the dream home can be a tiresome undertaking and when you are losing out time and time again you start to feel like you will never win a bid.
Buyer Burnout sneaks up on house hunters that want to start slow and take their time feeling out a hot market. Possibly based on their family or friends’ advice, they may make a cautious initial offer on a home with the hopes of strengthening it if it’s rejected. Unfortunately, listening to someone who is not familiar with the market can lead you into the disappointing territory.
When buyers are skeptical of market advice and don’t capitalize on opportunities to write winning offers, they can waste crucial weeks, or even months, in a damaging cycle of submitting offers, getting rejected, modifying offers, getting rejected again, then starting all over with the next property.
Ways to avoid “Buyer Burnout”:
- Hire an experienced agent you can trust! This means that right now may not be the best time to try out your cousin who just got licensed. Choose an agent who can balance writing a winning offer and protecting your interests. Select someone who clearly communicates and takes the time to explain the risk in waiving subjects.
- Speak with a mortgage specialist to help you get the most out of your money. They can walk you through the best type of financing for your individual situation and share helpful tips based on their knowledge of the industry.
- Get fully and thoroughly pre-approved! Get pre-approved before making an offer.
- Don’t be afraid to go ALL IN with your first offer. Know that it is okay to fall in love with the first house you make an offer on. Remember that subjects can be removed if due diligence was properly done before writing an offer. Having an experienced agent to guide you through these decisions is vital.
- Consider updating your wish list. If you have lost out in previous offers, speak with your agent about reevaluating your “must-haves list”. You can increase the number of potential homes by broadening your preferred neighbourhoods or updating the minimum property size (just to name a few). Additionally, the properties in less popular areas may have reduced audiences which lowers the amount of competition.
Lastly, I want to end on a positive note. The “ Spring Market” is now upon us which tends to usually bring on an influx of new listings each week. This should hopefully help curb the surged prices we are seeing on a lot of homes so stay positive, and be sure to follow the 5 ways to avoid ‘buyer burnout’. I hope this will help you to find that dream home in this market.