Today is Halloween. Conversation has been trending toward things that go BOO! for weeks now, and there does seem to be a good bit of fear and loathing out there these days.
But I am drawn to the iconic line from Franklin D. Roosevelt’s 1933 inaugural address:
… let me assert my firm belief that the only thing we have to fear is...fear itself — nameless, unreasoning, unjustified terror which paralyzes needed efforts to convert retreat into advance.
In general, I totally agree with FDR! There’s really nothing to be afraid of. It’s always a great time to buy or sell a house, so buck up and jump right in.
However … there are always specific things to be wary of, lest they jump out of the shadows and knock you off your pins – or worse.
A few things that could turn your real estate deal into a nightmare these days:
Overpricing
I can’t say it often enough: price it right and it will sell. But, if sellers are stuck in last year’s mindset, assuming they can pull a price out of the air and expect multiple offers, the house will be overpriced. And it will be on the market a for while until reality sets in.
Underbidding
The obverse of this situation occurs when buyers assume the market is dead in the water, and make a low-ball offer. Not smart. It’s still a sellers’ market. Unless the asking price is a couple of weeks old, the seller is going to hold there, and the low-ball offer will be rejected, or at the very least, countered.
Interest Rate Panic
Yes, rates are currently almost 8%, and yes, no one knows when they will float back down. But if you let that scare you away from buying, you are succumbing to exactly what FDR warned about in the teeth of the great depression. You’ll allow fear to paralyze you – and you’ll still be scared.
Shady Terms
Low earnest money, slow earnest money, crazy-high offers with long due diligence periods, sight-unseen offers, unverified cash to close, bogus wiring instructions, weird stuff in Special Stipulations … the list goes on. There are plenty of shady operators out there who will be happy to slip a few – or a lot of – bucks right out of your pocket.
Freelancing
And here we get to the fundamental truth: real estate is not for amateurs. If you are tempted to try a DIY deal, run, do not walk, into the arms of your licensed realtor. That’s the best protection from all the scary stuff.