Like many other real estate markets around the U.S., realtors in Las Vegas see a new element in play among many home buyers and sellers, “FOMO.”
“It’s ‘fear of missing out,’” said a realtor in Las Vegas. According to him, FOMO is occurring in the current housing market when emotions begin driving big financial decisions.
With housing prices soaring, many homeowners are developing a fear of missing out, thinking there may never be a better time to cash out. For home buyers, FOMO can be costly, as they try to top numerous competing offers.
“The fear of missing out,” she said, “anxiety and the stress that these buyers are going through, is that they’re making offers before they’re even seeing properties. I mean, sight unseen, they’re doing anything and everything they can, just to have a shot.”
And, FOMO can become counterproductive for buyers and sellers. Many buyers deal with growing tired of repeated let-downs after getting out-bid on numerous homes.
For sellers, “they can still get a little too greedy and when they overpriced properties to the degree that it’s just beyond sensical anymore,”she said. “Those properties could still sit on the market and get stigmatized.”
Her advice for buyers, go in strong with your mortgage money to cover the appraised value of the property, and have additional cash on hand to cover the difference between market value, which is the actual amount you’ll pay for the house.
“That’s hard for a lot of buyers to wrap their head around. The fact that, well, if it only appraises for this much, why would I pay this much?” she said. “Well, you’re gonna have to pay this much if you want to be a homeowner, because there are a lot of other buyers out there with FOMO that you know are willing to throw an extra $25,000 on it so they know that they have a home to go home to at the end of the night.”
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