Frustration, Missed Opportunity And The Logical Order Of Real Estate

Based on our Internet traffic and attendance at our open houses, the fall real estate market portends to be a brisk one. Additionally, we continue to see a number of properties go to multiple bids. The state of the market, however, is not the essence of this blog post. The core of my message here is to offer some sage advice to buyers.

Conversationally Speaking

Potential buyers often come to me for guidance, sharing that they’ve been “looking for a home for months,” but haven’t met with much luck. They haven’t listed their home yet but will do so when they find the “right” one. “We don’t have to sell in order to buy,” is their reasoning. Others declare that they don’t want to be in a situation whereby their home is sold before knowing where they’re going to live.

Frustration and Missed Opportunity

Both scenarios lead to frustration and missed opportunity on the part of the buyers and the Realtor that they are working with.

The crux of the dilemma is in the fact that their own home is not listed. This usually leads to one of two situations.

1. Frustration comes into play for buyers who need to sell before they purchase but just can’t seem to find the perfect home before listing. What they don’t realize, often until their home is sold, is that there is no perfect home. A buyer typically doesn’t reach the level of motivation that’s necessary to move forward with a purchase until they are no longer encumbered with the sale of theirs. Once that occurs, the goal of finding the “perfect home” ceases and it becomes about finding the home that works best for them and their family.

2. Missed opportunities often occur even at the “higher end” of the market for those who don’t have to sell their home before buying. When they finally do find a home that they’re excited about, it’s generally one that’s attractive to a handful of other buyers as well. The difference being that many of those other buyers already have their home sold. Once again the motivation level is higher for those whose home has sold or minimally have a contract on their existing home. That in fact is generally enough to inspire a more aggressive offer than from the buyer who doesn’t. Thus the latter buyer is at a distinct disadvantage.

Buyers’ Nutshell

This is not to suggest that real estate is never transacted involving someone whose home is not listed or sold first. It merely portrays a common experience that such potential buyers have and the systemic reasons for the resulting frustration and missed opportunities. To minimize the chances of this occurring, it is wise to be mindful of the logical order of purchasing real estate.

Written by Al N. Filippone. For more information about the local real estate market, call our Darien office at 203.655.5358 or visit our website at afahomes.com.