Our company sells a home every three days, and there are four things I'd refuse to do as a buyer in today's market. Here's what they are and why.

People ask me some version of the same question all the time: "Johnny, if this were your parent, your kid, or you buying this house, what would you actually do?" It's a fair thing to ask. Our company sells a home about every three days, and after thousands of sales, we've picked up a few hard-won lessons. So here are the four things I would not do if I were buying a home in today's market.

1. I'd never buy sight-unseen or waive the inspection. If someone wants to make an offer on one of my listings without ever setting foot in the property, I'd rather the seller wait for a buyer who can walk it in person. You don't actually know if a home fits you until you've experienced it: the smells, the light, the location, the way the space flows. Unless you're a seasoned investor, and most people aren't, you want to be there in person. And you always get the inspection. 

Buying without one is like buying a car off a stranger and skipping the Carfax. You have no idea what you're really getting. We break down more buyer tips like this on our blog.

2. I'd never get dragged into a bidding war. So many buyers get emotionally attached: they walk a home, they love it, it's perfect for the family, and then another offer comes in. So they raise theirs. Then they raise it again. Before long they're paying well over what the market really calls for, when there are plenty of great homes sitting right now, overlooked and overpriced, that you could pick up without the frenzy.

"There are so many great homes sitting overlooked right now, you don't need to get dragged into a bidding war to buy well."

I'll be honest, there are times it makes sense to stretch, at least emotionally, though almost never purely financially. Is the home close to your work? Close to your kids' school? For me, the biggest one is family. I see people chase the biggest or "best" house way out on the edge of Roseville, then spend 40 minutes each way driving the kids to school. I'd rather you figure out what you want your community to feel like first. I live two doors down from my mother, and it's honestly the best thing in my life. I've got three little boys, and they love being that close to grandma. That's worth more than a few extra square feet.

3. I'd never buy late in a new-build community. Most people don't think about this one, so if you're taking notes, write it down. The advantage of buying in a new-build community, especially if you'll be there five, seven, or ten years, is that builders tend to raise prices as each phase sells out. Buy earlier in the community and you often benefit from that built-in price growth. Buy late, once it's nearly built out, and much of that upside is already gone.
4. I'd never hire a non-local agent or lender. Say you're moving from the Bay Area. That Bay Area agent usually doesn't have access to our lockboxes and doesn't know how deals are typically structured here, so you get constant friction and advice built for a different market. That can cost you thousands. When I have a client buying in the Bay, I refer them to a great agent in the Bay. I wouldn't have the audacity to walk into someone else's market and assume I could get them the best deal.

The same goes for your lender. You want a local mortgage lender, not one headquartered in Michigan or somewhere on the East Coast, and usually not your bank either. Bank loan officers often aren't licensed the same way independent mortgage originators are; many are registered but exempt from the added training and testing that licensed originators complete, and banks tend to offer fewer loan products. That combination can quietly cost you more. Work with someone out of the area, agent or lender, and you're likely spending more than you need to.

So to recap, the four things I would not do buying a home right now: I wouldn't waive the inspection, I wouldn't get dragged into a bidding war, I wouldn't buy late in a new-build community, and I wouldn't work with an out-of-area agent or lender. 

If you have any questions or want to talk through how we can help you get a great deal, reach out to our team or find us on Google, where we've earned over 1,000 five-star reviews. Call or text us at (855) 935-6673, email [email protected], or visit made4morerealty.com.