When buying your dream home, everything can be going according to plan – you're about to close, and then an unexpected cash offer comes through and you lose out on the home. It's not fun, but it does happen. When buying your dream home, one should look to their expectations vs. reality. Unless you're in a very well-off position financially, (and even then, there's no guarantee) you will most likely have competition when looking to buy a home.
Expectations vs. Reality
The housing market doesn't care how long you've been searching or how perfect the house feels to you. It's truly just a numbers game. Take this recent story from Reddit's /RealEstate* community. A Redditor shared their experience after searching for a very specific type of home:
"We've lived in our current home for over 20 years. It is a nice neighborhood but too small since we had kids. We've been looking for 10 years (!) for a very specific type of house on a very specific type of lot. We found ones that we liked in recent years but were outbid on all. Wasn't too worried about it and moved on figuring it wasn't meant to be. Then on Friday we found THE HOUSE… Offered $20k over asking with an escalation clause up to $75k over asking… Basically, we were beat by a cash offer with an escalation clause $150k over the asking price (so they got it for $76k over the asking price after beating our highest price). We are both just devastated…"
That's a tough hand to be dealt. After years of searching, they found the dream house that checked all the boxes. Then, they lost it to an all-cash offer above what they could afford.
Doing Everything Right (Still Might Not Be Enough)
From the looks of it, the Reddit user seemed prepared. They offered above asking and had an escalation clause. But even with that, they lost out. In competitive markets, homes can receive dozens of offers within days of being listed. Wealthy buyers can come in with cash, others waive contingencies, and some buyers are simply willing to pay more.
While we're uncertain of the Reddit user's location, it is pretty clear they're in a competitive market. Though home inventory had increased in some markets, others are still seeing fast moving listings and fierce competition.
A Few Tips to be Strategic:
- Hire a REMAX agent who knows the local market. They can help guide you through competitive situations with care ease.
- Get pre-approved as soon as possible. This shows sellers that you are serious about buying a home and have already completed an important step.
- Be flexible on expectations and budget. You may need to stretch a little (or sometimes even a lot) to win the bid on the dream home you're vying for.
When It Does Work Out
This is all to say that every situation and transaction is unique. Interestingly enough, the top comment on the exact same post* is a hopeful counterpoint:
"We have been looking for years as well. Finally, the right house in the right neighborhood came up. We offered $45k over asking and had the highest offer, but the sellers went with someone who had $600k down. Then after a week, the buyers backed out! They found something they didn't like and walked. We are in contract. So, things could happen even if you don't have $700k I guess! You truly never know…"
Talk about good luck! Even after losing out on their dream home to another buyer, this user ended up getting the house when the buyers backed out. It's a good reminder that real estate deals can be unpredictable. It's also good to note that sometimes patience can pay off.
Feeling Stuck? You're Not Alone
In present day, many people feel stuck when trying to break into the housing market. If you're a first-time homebuyer or a move-up buyer, the process can be frustrating and long. The original poster had a home already, so waiting 10 years for the perfect upgrade may not seem too bad.
However, if you're still trying to buy your first home, that wait may feel a lot longer. If you think your homebuying process is taking too long, it might be time to reassess your dream house wish list. That 5-bed, 3 bath dream home might need to become a 2-bed 1-bath starter home. The key is getting your foot in the door, pun intended!
How a Real Estate Agent Can Help You Win
It is highly recommended that when buying a home to start with a real estate agent. Navigating the market on your own can be overwhelming and truly, you may not know what you're doing. That's not a dig on anyone's intelligence, but rather to point out that buying and selling a home is a very complicated process involving hundreds of pages of paperwork and a lot of time.
That's where a real estate agent becomes your secret weapon when trying to find your dream home. A good agent isn't just someone who literally unlocks the door for you. They're your negotiator and strategist through the chaos. They can help by offering market expertise, let you know which neighborhoods are heating up, and where you might find some hidden gems. They also can help you get the best deal by looking at comps in the area.
Keep Up Hope
Buying a home doesn't mean the person who was the most prepared secured the home. In fact, buying a home is truly part luck, being in the right time and place, and can be an emotional rollercoaster. Finding your dream home can be even more challenging, with so many requirements to meet. The important thing is to stay flexible. You should also be prepared as possible but know that your vision might not work out 100% the way you think it will.
Your dream home may not be the house you had in mind, but it could be one that surprises you in more ways than one. Whether you're just starting your search, or you've been at it for years, remember that every "no" brings you closer to a "yes." Try to keep your head up, your paperwork ready, and your expectations grounded in reality. The right dream home might be one "no" away.
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