August 20th, 2014 2:06 PM by AJ Gentry
We often joke with our clients about WHEN is the appropriate time to get excited during a real estate transaction. Is it the minute you have both parties signature on the contract? How about after the inspection period? Should you wait to update your Facebook status until you have keys and the transaction is closed?
The truth is, it’s fine to be excited whenever you feel excited; just remember, the transaction isn't over and you don’t OWN your new home until the transaction is closed at the title company and your lender has funded the sale. So popping the cork off that bottle of champagne should probably wait until you are officially in your new home.
In the age of social media and lightening speed mass communication, buyers are often sharing photos and information about the homes they like which could be detrimental to the buying process. Regardless of how locked down your social media profiles are, sharing information about the home your are making an offer on, the price you are willing to pay, how much you love XYZ property and the like is not going to give you any kind of competitive advantage over the competition. Let’s face it, six degrees of separation is a real thing, and you can almost be guaranteed that someone you know knows the owner of the home in which you are interested in or under contract on.
That can lead to the home seller knowing more about your hand of cards than you’d care for them to know. Imagine this:
You've just viewed the home of your dreams in Brookside. It has everything you want and you know it’s the right home. You are so excited after a few weeks of house hunting that you decide to go home and share your excitement with all 543 of your Facebook friends. You share a photo, share the MLS number and your personal account of how perfect the house is for you and your family. Your friend, who happens to live in the same neighborhood as the dream house, happens to know the owner of the dream house and is also excited about the possibility of you moving in next door. He says he is going to speak to the owner of the house about your excitement.
Do you think this is good for you or bad?
Chances are, if the seller knows how bad you want the house, your power to negotiate just flew right out the window. The seller now knows how perfect the house is for your family and will likely assume you are willing to pay full price. They might even want to raise the price knowing how badly someone wants the house.
In this instance, less is more. Sure you can share that you have found a great home, but perhaps leaving off of Facebook would be appropriate, or at least photos, MLS numbers and any address. Keep the upper hand and don’t let the seller or the seller’s agent know how perfect that dream house is for you. Having a buyer’s agent can help you keep cool, calm and collected and make sure the seller’s agent doesn't detect your excitement, which can also be hazardous to you getting a good deal.