There are many aspects and layers to touring homes and making offers. After reading this you’ll understand it all a little bit better and be more informed so you can look forward to this stage of the home buying process!
Touring homes is important for both the buyer and the broker. As a broker it’s important to know what’s happening within the market and to also know what the available inventory is. When touring homes, a broker might be thinking about buyers they’re working with and if a particular home might be a good fit for them. With how quickly a house can go under contract touring ahead of time can be the difference between a client’s offer getting accepted or them missing out on the perfect house. Buyers are always looking on public sites, we know plenty of them, but those sites are not always up to date and 100% accurate. A broker has access to information and websites that are constantly updated and accurate which helps them be more efficient at their job. Another thing to keep in mind is that with buyers doing their own research, brokers that tour on a regular basis will be able to answer a buyer’s questions regarding the market and different areas of interest. A broker that is prepared is always touring new listings and homes to stay up to date with what’s on the market. When a broker and buyer tour together they usually have the homes picked out that they’re going to see. Those homes are picked based on what the buyer’s budget and other factors, which we’ll get into next.
Before touring homes with a buyer it’s important for the broker and buyer to know what the buyer’s budget is, what their needs/wants are, what they might be willing to compromise on, how high they’re willing to go, etc. I can’t stress how important the budget is, along with knowing the type of financing, when looking at homes. Sometimes a buyer may be approved for a higher amount, but their everyday living and activities will require them to look at a lower price point if they want to continue doing some of those things. For example; Kyle got approved for $500,000 which is great, but Kyle likes to entertain friends, go out to dinner, and take weekend trips. If Kyle wants to continue doing those things, he might consider keeping his budget at $350,000-$400,000. Knowing all those things ahead of time will really allow the search to be focused on homes that fit the criteria and it will also help the search go a lot smoother. Now, of course there needs to be some flexibility because once a buyer starts seeing homes in person sometimes their view and their list changes.
Making offers can be really fun but also a little stressful if you’re not prepared. This is another reason why touring homes is so important. As a buyer we already talked about knowing the budget and why that’s important. Another reason why it’s a key component is because a house might be overpriced, or maybe a buyer isn’t willing to pay $X above what the house is listed for. What if there are multiple offers? These are all crucial items to consider when it’s time to make an offer. A broker will be able to look at the comparables and let the buyer know if a home is priced right and help a buyer structure their offer to give them a winning chance. Some people think that the highest offer is the best but that’s not always the case. There are other elements that also make a buyer’s offer strong and some sellers are savvy enough to look at those other elements
Purchasing a home can be extremely rewarding and satisfying on so many levels. Being prepared along with having the right broker represent you makes the process smoother and easier to understand. Don’t be alarmed if you experience a hiccup or two along the way, that’s par for the course. I promise you that if you go in with the right expectations and mindset, beautiful things can happen. So strap on your seatbelt and get ready for a wild ride!