Buying a home is usually the largest financial transaction that people will ever embark on. Since it is likely the most amount of money they’ll ever spend on something, it’s crucial to be practical when making decisions during the home buying process. However, practicality can often take a back seat, as the emotion that goes into finding a new place to live can take precedence in the mind of a buyer.
When making these huge decisions, buyers often wonder how many homes they should see before they move forward and submit an offer. The short answer is that there isn’t a magic number. A buyer could see one, five, or fifteen homes before they find the right one!
Ultimately, the “magic number” of homes depends on each buyer’s unique needs, preferences, and of course, market conditions. Some buyers may feel confident after just one or two showings, while others may want to explore multiple options to ensure they’re making the right choice. In this blog, we’ll explore the benefits of seeing many homes versus focusing on just a few, and how each approach can impact the home-buying experience.
Seeing Only a Few Homes
Sometimes, it’s just love at first sight, even when buying a home! There are some buyers who luck out and find their perfect home during the first few showings and submit an offer shortly after beginning their home search. In most cases, these buyers are either lucky, know exactly what they want and find it, or a combination of both. Most buyers who submit an offer on one of the first few homes they’ve seen, and are confident in their decision generally have a predetermined list of characteristics they need, want, and DON’T want in a home.
How long these lists are, how flexible the buyers are, how realistic buyers are about their budget, as well as how effective their REALTOR® is at locating homes available on the market to suit these needs, will determine how many homes will need to be seen prior to finding the right one. It can also be as simple as feeling it in your gut! There are plenty of homeowners out there who own homes they didn’t picture wanting at the beginning of their search. Keeping an open mind is key!
Seeing Many Homes
It is the age of technology, so many buyers browse a lot of homes online before ever setting foot in a private showing. Some buyers spend weekend after weekend attending open houses. With that being said, there are buyers out there who feel like they’ve seen every home on the market but still aren’t ready to make an offer. In this case, it’s recommended that the buyer sits back down with their REALTOR® to review their list of needs, wants, and undesirables. There is a possibility that there might be an unrealistic expectation of how much money they need to purchase a home in certain areas, or perhaps that the buyers simply may just need to wait until the right house comes on the market.
It can be frustrating to keep looking for the perfect house, and sometimes it’s advisable to take a break for a couple of weeks to regenerate the open-mindedness and excitement to see possibilities in homes that are for sale. Buyers should keep a line of communication open with their REALTOR®, and trust that they want to find their client’s dream home just as much!
An expert REALTOR® may even know of some homes that are available for purchase without being listed, so having an agent with these resources can truly give a buyer the upper hand in any market.
How to Make the Most of Each Home Showing
Every home viewing counts, so it’s important to approach each one with a clear mindset. Buyers should create a checklist of must-haves, nice-to-haves, and deal-breakers before stepping into a potential home. This approach ensures that each visit is more than just a walkthrough and helps buyers focus on what truly matters. Taking notes, and photos, and even asking their REALTOR® for professional insights during showings can streamline the decision-making process and ultimately make the home search more efficient.
The Role of Market Conditions in Home Searches
The real estate market goes through a multitude of changes throughout the year, and when a buyer goes searching for homes, it can greatly affect the likelihood of getting an offer accepted. As we mentioned above, buying a home is a significant decision, so it’s best to take the necessary time to really find the perfect home. Most buyers have heard the terms Buyers’ Market and Sellers’ Market before, but it’s important to understand what house hunting is like in each of these markets.
Home Searching in a Buyers’ Market
When it’s a buyers’ market, there are several homes available on the market, so the selection is much wider. Therefore, buyers might have more time to explore different options before making an offer since homes aren’t going under the agreement as quickly.
Home Searching in a Sellers’ Market
In a sellers’ market, the landscape is much more competitive. Homes can go under contract quickly, meaning buyers may need to make decisions faster. If a particular buyer is someone who needs time to consider all their decisions before committing to a home, buying during a market such as this may pose challenges. Additionally, since there are more buyers than sellers, this often results in a bidding war.
Understanding the current market conditions can help buyers know whether they should speed up their search or take their time, making it crucial to work closely with an experienced REALTOR® who knows how to navigate these dynamics.
Find the One? Steps to Take BEFORE Submitting an Offer
After the home search journey, whether long or short, what steps should be taken before a buyer moves forward with submitting an offer? Before making a commitment to buy a home, it’s important to be fully prepared.
- Get Pre-Approved for a Mortgage: A pre-approval letter from a lender shows sellers that the buyer is serious and has the financial means to purchase their home. It also provides a clear understanding of budget. Additionally, choosing the right mortgage broker can help streamline this process.
Review Comparable Sales (Comps): Working with a REALTOR®, buyers should review recent sales of similar homes in the area, otherwise known as “comps”. This will help with understanding the market value of the home and determining a competitive offer price.- Evaluate the Home’s Condition: Before committing to a home, buyers must consider the age of major systems like the roof, HVAC, plumbing, and electrical. An expert REALTOR® can help assess if any major repairs are on the horizon.
- Clarify Offer Terms: Finally, buyers should always discuss offer details with a REALTOR®, such as the offer price, closing date, and any contingencies like home inspections or appraisals. This ensures that the offer is clear, complete, and in line with all the buyer’s needs.
Taking these steps before submitting an offer can help buyers make a well-informed decision and put them in a stronger position when negotiating with the seller.
Happy Home Hunting!
Some home buyers experience that ‘love at first sight’ feeling immediately, and for others, finding the perfect home can take much longer. At the end of the day, buying a home is both a significant business and personal decision. It’s imperative to keep your budget in mind along with your lifestyle, but until a home seems like the right one for you, it’s worth the wait! Be sure to be prepared with all the necessary documents, pre-approvals, and financials in line so that when that home does eventually appear- and it will- you will feel ready to buy with confidence!