Top 5 Buyer Mistakes in Owensboro, KY

Karen Pannell, Owensboro, KY real estateTop 5 Buyer Mistakes in Owensboro, KY

 1.      Basing your offer on the listed price.

 Some buyers always offer 10% less than the listed price.  What if the property is listed for $150,000 and is overpriced by $20,000?  Even if you offer 10% less / $135,000, you will still be paying $5000 too much.  Many times I have heard buyers brag that they bought a home for $20,000 less than the original list price.  The truth is, the house was overpriced by $20,000 from the beginning or it would have sold already.  To protect you, I will provide information on recent sales in the area so you will know you are getting the best value. 

 

 
2.     Making A Ridiculously Low Offer

Contrary to what you see on TV and read on the internet, most sellers have not just fallen off a banana truck – they know what their house is worth – even if they overprice it initially.  Like you are wishing for a stupid seller, they too are wishing for a stupid buyer.  Writing low offers insults the seller and wastes everyone’s time.  You also run the risk of another buyer stepping in and buying the house while you are in the midst of negotiations with the seller.  Even if the seller counter offers to you, they can withdraw their offer at any time until written acceptance.Owensboro, KY real estate

 
3.     Not Giving Enough Earnest Money

Earnest money shows you are “earnest” or serious about the offer you are making.  When your earnest money is low, it waves a red flag to the seller.  They may counter offer and request a larger deposit, but once again you also run the risk of another buyer stepping in and buying the house while you are in the midst of negotiations.  If there is an unusual circumstance for giving a low earnest money deposit, an explanation should be communicated to the seller when your offer is presented.

 

4.      Owensboro, KY real estateNot Getting A Home Inspection

 The appraisal that the bank does IS NOT a home inspection!  Home inspections are performed by licensed home inspectors, not appraisers.  Home inspectors find all the things that our untrained eyes miss.   This could save you thousands of dollars in repairs later.  This is a must for all home buyers. 

 
 5.      Not Buying Owner’s Title Insurance

 Many buyers mistakenly believe that the title insurance the bank requires them to buy (lenders title insurance) will also protect them.  THIS IS NOT TRUE!  Buyers should also buy OWNERS title insurance.  An owner's policy protects your interest in the property against such hidden defects as:  mistakes in recording of legal documents, forged deeds, releases, or wills; undisclosed or missing heirs, liens for unpaid taxes, fraud and other claims that could prevent you from selling your home in the future.  This is a fee that can be included in your closing costs and is well worth the investment. 

 
If you are ready to start your home search, please consider me your resource for Owensboro, KY real estate.  I have the experience to help guide you through the home buying process – contract to closing.  Call or text me at 270-903-2167

 

 ©Karen Pannell – All Rights Reserved

 

 

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Text or Phone:  270-903-2167

Owensboro, Kentucky 42301

Comment balloon 24 commentsKaren Pannell • November 27 2012 03:52PM

Comments

I think these Top 5 Buyer Mistakes in Owensboro, KY are unfortunately, universal!  At least there is a great local expert named Karen Pannell to advise when it comes to Owensboro KY Real Estate homes for sale needs!

Posted by Rob Lang, Local Expert in Lawrence Kansas Real Estate Homes (At Home Kansas) about 7 years ago

I agree with #4 the most.  Get a home inspection.  So important.  #5, owners title insurance, that's a tough one to talk buyers in to.  Too many people think insurance is insurance, betting against yourself.

Posted by Cindy Edwards, CRS, GRI, PMN - Northeast Tennessee - 423-677-6677 (RE/MAX Checkmate) about 7 years ago

@Rob - thanks so much!  You are too kind!

@cindy - you are correct about Owners title insurance.  I have two properties right now that I am trying to close with MAJOR title issues.  They have been working on one since May.  That one is an estate and the heirs are not going to have any proceeds to split by the time the legal fees are paid.  The tragedy is that sellers don't realize they have a title problem until they try to sell and the defects are discovered.  Our company is having buyers sign a wavier if they choose not to purchase it.  We have one title company in town who will not close a loan on foreclosure/shortsale/bank owned property unless the buyer purchases owners title. 

Posted by Karen Pannell, Owensboro KY Real Estate -270-903-2167 Homes, Cond (Real Living / Home Realty) about 7 years ago
Karen, These are all important points for buyers to pay attention to. And I agree with Cindy that no. 4 is so important for buyer protection.
Posted by Ann Nguyen, Lake Tahoe Truckee Homes For Sale (eXp Realty of California, Inc.) about 7 years ago

Love when buyers don't want to pay one penny over list.

Home could be realistically worth 400k but listed at 350k.

I plan to do an instruction book on value and smart bidding complete with pretty pictures.

 

Posted by Pete Xavier, Outstanding Agent Referrals-Nationwide (Investments to Luxury) about 7 years ago

All very good advice. The best one and hardest to sell to a buyer is the Title Insurance, they just don't understand what they are insuring, The biggest invest they make of their life most of the time.

Posted by Chuck Mixon, Cutler Bay Specialist, GRI, CDPE, BPOR (The Keyes Company) about 7 years ago

That's a good list, Karen.  The first one could definitely get an inexperienced buyer in trouble right away.  Lowballers are plentiful around these parts too.  Good advice.

Posted by Mike Cooper, GRI, Your Neighborhood Real Estate Sales Pro (Cornerstone Business Group Inc) about 7 years ago
Thanks for the great list provided. I am going to follow your advice.
Posted by Tark Ells (Terelicte Real Estate) about 7 years ago

Plenty of the low ballers around here to. We try and explain it's just not that market anymore but they see it on TV and, well.....someone else puts in ta real offer and they lose it. Sometimes more the dimmer ones it takes a few.

Posted by Joel Weihe, Helping you to use your VA home loan benefits (Realty World Alliance) about 7 years ago

I think you have hit the nail on the head.  Unfortuanately, as the market starts to change so will the buyer's mistakes.

Posted by Joan Whitebook, Consumer Focused Real Estate Services (BHG The Masiello Group) about 7 years ago

Karen, the most important one - I can add to this list is...

Working with a professional Real Estate Agent...

Posted by Praful Thakkar, Andover, MA: Andover Luxury Homes For Sale (LAER Realty Partners) about 7 years ago

I would also add, #-1, not getting approved for your mortgage before starting the process.  All great points to consider, especially with the usual holiday demand of buyers simmering until January.

Posted by Tamara Inzunza, Close-In Alexandria and Arlington Living (RE/MAX Executives) about 7 years ago

Karen   Great post and thanks for sharing this list that will apply anywhere.  I've got a couple of investors that always make a low...low offer.  Generally, they lose but once in a while the low offer wins.  That keeps me working for them.  If they were regulars buyers I would be offended by their low offers...but, they are investors.  All 5 are good points.

Posted by John G. Johnston, An Exclusive Buyer's Agent ~ Westcliffe, CO (John G. Johnston & Associates, LLC) about 7 years ago
Great advice, thanks for sharing.
Posted by Eric Salonga, Your Key to the Central Valley (The Salonga Brothers at Reed Realty) about 7 years ago

Karen:  This is some advice for all of us,  keep up the good work and good luck with your business, E

Posted by Ed & Tracy Oliva, The Oliva Team Arizona Agents (West USA Realty - Arizona) about 7 years ago

Good morning Karen - Buyers who make mistake #1 or mistake #2 are either working with an inexperienced agent or think they know more than the agent. There's no quicker way to lose a deal than to make these mistakes! Great post!

Posted by Wayne and Jean Marie Zuhl, The Last Names You'll Ever Need in Real Estate (Samsel & Associates) about 7 years ago

Great points Karen. Loved the comment about sellers falling off a banana truck.

Posted by Aaron Smith, Northern Kentucky Agent & Investor (Keller Williams Advisors ) about 7 years ago

These are good tips for buyers. I hope they will read your post.

Posted by Gita Bantwal, REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel (RE/MAX Centre Realtors) about 7 years ago
Great tips for sure and I must concur with Praful above on working with a good real estate agent.
Posted by Paula McDonald ~ GRI, Granbury, TX 936-203-0279 (Beam & Branch Realty) about 7 years ago

Not wise to base what we do exclusively on money...It is only part of the equation. If someone really finds the must have home, they should move with a purpose and get it....Getting satisfaction at these price levels to me is the primary purpose

Posted by Richie Alan Naggar, agent & author (people first...then business Ran Right Realty ) about 7 years ago

Great info here.  Ridiculously low offers don't work anymore.  They just don't.                                                                    

Posted by Amanda Christiansen, Christiansen Group Realty (Christiansen Group Realty (260)704-0843) about 7 years ago

Karen, five excellent points buyers often mistakenly make. Number one makes the buyer feel good even if they know they paid too much.

Posted by Michael Setunsky, Your Commercial Real Estate Link to Northern VA about 7 years ago

Thanks to everyone for all their great comments!  Definitely need to add about the pre-qual at the bank.  Interesting to hear that many others are fielding lowball offers as well.

Posted by Karen Pannell, Owensboro KY Real Estate -270-903-2167 Homes, Cond (Real Living / Home Realty) about 7 years ago

Karen: Low ball offers are still offers and I always suggest to my seller to counter, not ignore it. We've come to several contracts somewhere in the middle.

Posted by Hella Mitschke Rothwell, Hawaii & California Real Estate Broker ((831) 626-4000) about 7 years ago

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