Why Out-of-Date Home Buying Advice Can Cost New Jersey Buyers

Be careful with buying advice from anyone advising you who hasn't bought or sold in the last 10 years. They mean well, but the way offers, inspections, financing and agent agreements work has changed, and advice built on an old market can cost you the home you want.

I'm Dennis Mark Interdonato with The Dennis Mark Group at Keller Williams Realty Ocean Living. I see it with buyers across Monmouth and Ocean County: we build a plan, then outside advice that contradicts it causes problems until the buyer sees the plan was right. Outside opinions can help, as long as the person giving them is realistic and listens too.

Why can outside advice work against a buyer?

Because it's based on the last time that person was in the market. Someone who bought years ago remembers what worked then, and they'll tell you with confidence. The problem is that the rules of the game have moved since. Advice that was right then can lose you a house now.

It isn't about who's giving the advice. It's about how recent it is. A friend who bought last year has more current information than someone who bought two decades ago, no matter how much they know about houses.

What's changed since the last time they bought?

• Buyer agreements. Written buyer agreements are now standard practice before you tour homes with an agent. The buyer agency page explains how that works.
• How listings get seen. Homes go live online and buyers get alerts within minutes. The first two weeks on the market bring most of the attention, so the right home can draw several offers in its first weekend.
• Rates and payments. Rates move, and so does the math. Advice built around a rate from years ago doesn't tell you what your payment will be today.
• Offers and terms. What makes an offer strong depends on what's happening that month: price, deposit, financing, inspection terms and timing all play a part.
• Prices. What a home "should" cost in someone's memory isn't what it sells for now. Closed sales from the last few months are the measure.

What out-of-date advice do buyers hear most?

• "Always offer way under asking." On a well-priced home with other buyers, a low offer can lose it.
• "Wait for rates to come down." More buyers come back when rates drop, which means more competition. More on that in whether to wait for rates to drop.
• "Don't buy the first house you see." If it checks your list, it may be the one. See why you should buy it when you find it.
• "That's too much for that house." Compared with what? The price that matters is what similar homes sold for recently.
• "All agents are the same." They aren't, and the difference shows up when a deal gets hard. See whether all realtors are the same.

How should you weigh advice from people outside the deal?

1. Ask when they last bought or sold. If it's been more than 10 years, treat it as background, not a plan.
2. Ask what their advice is based on. Recent sales and real numbers carry weight. Memories of a different market don't.
3. Bring it to your agent. I'd rather hear the concern than have it sit with you. I'll show you the current numbers and we'll decide together.
4. Check it against your plan. Your must-haves, your budget and your timeline are the measure. Advice that changes them should come with a good reason.
5. Use licensed pros for the details. Your attorney, lender and inspector are working in the current market every day. Let them answer the legal, loan and condition questions.

What does good outside advice look like?

It's realistic, it's recent, and it listens. A good outside advisor asks questions about your budget and goals before telling you what to do. They're open to the idea that things have changed. They help you think, rather than override the plan you built with the people working your deal.

If someone you trust wants to come to a showing or join a call, bring them. I'll walk them through the numbers too. By the time we're done, nobody's going to have any questions left.

How does this apply to buying in Monmouth and Ocean County?

What worked in another county or another decade won't tell you how homes are selling in Brick, Toms River or Howell this month. For dated, local numbers, use the monthly market report.

Frequently Asked Questions

Should I listen to advice from people who bought homes years ago?

Listen, then check it against current numbers. Anyone advising you who hasn't bought or sold in the last 10 years may be working from a market that no longer exists.

What has changed most in home buying in the last 10 years?

Written buyer agreements before touring, how fast listings are seen online, rates and monthly payments, and what makes an offer competitive.

How do I know if advice about a home's price is right?

Compare it with closed sales of similar homes nearby from the last few months. That's the measure buyers and appraisers use.

Who should I go to for legal or mortgage questions?

A New Jersey real estate attorney for legal questions and a licensed lender for loan questions. They work in the current market every day.

This is general information, not legal, tax or lending advice.

About the author

Dennis Mark Interdonato is a REALTOR® and Master CDRE® who leads The Dennis Mark Group at Keller Williams Realty Ocean Living in Point Pleasant, NJ, helping buyers and sellers throughout New Jersey make their next move, with Monmouth and Ocean County as home base. Read more about Dennis Mark.

Keep reading

• The New Jersey buying guide
• Resources for first-time home buyers
• From pre-approval to closing: the New Jersey roadmap
• Have a question this didn't answer? Send it to Dennis Mark.