There is a scary illness sweeping today’s real estate market. It is serious and in fact quite devastating to those afflicted. It’s called Discouraged Buyer Syndrome (DBS). If you’re in the market to buy a home, there is a great possibility that you are already infected. The symptoms include exhaustion, mood swings, depression, and lethargy. In fact, it can be so severe that I have see some buyers walk away from the process of finding their dream home altogether. The threat is real, but you can protect yourself from the devastating affects of DBS.
Let’s get started..
The truth is that most of South Florida is in a Seller’s Market. This means that homes don’t sit on the market long, as inventory of existing homes for sale is low. It’s the basic economic principle of Supply and Demand. Simply put, there are more buyers than there are homes for sale. This is the number one cause of DBS.
Secondary causes include Buyer’s lack of focus, insufficient financial preparation, and working with an inexperienced agent. Home Buying is very difficult in a Seller’s Market is difficult, but with preparation, you can increase your chances of success.
Prevention and Treatment
The very first thing you must do is get your financing in order. This goes beyond calling a lender to get a pre-approval letter. You need to make full application for a mortgage and be prepared to provide a copy of the underwriter’s approval. This is oftentimes an automated approval known as LP or DU. Having this included with an offer to purchase a home will put you leaps and bounds ahead of other home buyers that neglected to do this. A good listing agent will at the very least call the lender on the pre-approval letter to inquire as to the buyer’s ability to borrow. Having a copy of the DU/LP findings is almost as good as a cash offer, because the lender has reviewed the borrower’s information first hand and agreed to lend base on certain conditions. Home buying without a mortgage pre-approval is reckless and guarantees you will not succeed in purchasing your dream home.
Next you’ll need to decide exactly what kind of home you’re looking to purchase. Home buying requires planning. You need to narrow down your needs first. These should include neighborhood and price range. Once that is decided, you’ll need to make a list of your wants. These can include home condition and features. Understanding that you will in all likelihood not get every one of your wants, you’ll need to be flexible and have an open mind. Being will to make exceptions when buying a home is always a must. Being armed with your needs and wants list will help you with the high pressure decision making needed when navigating a seller’s market. You need to understand that there will be pressure to act quickly. If you don’t, you risk losing out on your dream home.
The third step in protecting yourself from DBS is to work with an experienced real estate agent that you can trust. Having a trusted agent makes all the difference in helping you find your dream home, especially in a Seller’s Market. You’ll need an experienced agent that can walk you through the many steps of buying a home. (For a copy of my free Home Buying Guide, click here.)
The final step to home buying is to get on the Trusted Agent’s Home Buyer List. This is a crucial step in a Seller’s Market. Agents who maintain a Buyer’s List will show their listings to their pool of buyers first. Sometimes even before the home is on the market/MLS, thus limiting buyer competition. Instead of competing with all of the buyers in the market, you’ll only be competing with the agent’s buyers. This is one of the best kept home buying secrets of agents. Now you know too!
Following these tips will help reduce the onset of Discourage Buyer’s Syndrome and help you beat this crippling disease. If you’d like to be added to my Home Buyer’s List, click here and fill out the form. You can also check out my other blog articles here for useful home buying and selling tips.