Choose not to make that offer

Some real estate agents think that a home buyer should make an offer on any property they like, no matter what the odds are that their offer will be accepted. The thinking is they’ll never know whether the seller will accept the offer unless they try.

Although this reasoning seems sound, it’s not necessarily so. There are certain situations in which you’ll be better off if you don’t make an offer. For instance, let’s say that you’re trying to buy in a market where all the well-priced homes are receiving multiple offers. Your agent calls the listing agent to find out how many offers are being made on a property you like. Your agent is told that 10 offers are expected. You can’t even afford to pay the asking price. So, it’s safe to assume that an offer below the asking price won’t be accepted. Even though your agent may encourage you to make an offer, it may not be worth it.

It takes time and emotional energy to decide to make an offer. Then, you can spend hours drafting it. This is a big effort for an outcome that’s easy to predict. Why put yourself through the anguish? Sit this one out and wait for a better opportunity.

Buyers who make offers over and over on listings that sell for significantly over their price range can burn out. Then they give up and drop out of the market. For a positive experience that is more likely to bring results, save your offers for the likely prospects.

Another time to reconsider your impulse to buy is when you’re purchasing long distance. Buyers who are being transferred to a new location often feel pressured to act quickly. Of course, you want to get settled as soon as possible. But there’s an alternative to buying. You could rent for a while until you find the right house. Although this requires moving twice, at least you would not purchase in haste. If you do, you may wind up wanting to sell and buy again soon.

Even if you’re not transferring, you can put pressure on yourself to buy for a number of reasons. When interest rates or home prices are rising, you may feel that you’ll never have another chance. Or perhaps you’re splitting up with your spouse and feel compelled to find a new home for yourself. The need is understandable. But decisions made in haste are not necessarily sound decisions.

The Internet has made impulse buying easier than ever. You can preview listings virtually anywhere in the world online. Many online listings come complete with a virtual or photo tour. Some buyers are relying on sketchy information about a property they find on the Internet and buy without first visiting the property in person.

It’s a mistake to forgo due-diligence investigations. Photos tell you a lot about a property but aren’t likely to show you the worst features, like the dilapidated house next door or the view of cars whizzing by on the freeway from the picture window in the living room.