THE BEST
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Buying Strategies |
Don't Get "Pre-Qualified!"
Do you want to get the best house you can for the least
amount of money? Then make sure you are in the strongest negotiating position possible.
You see, price is only one bargaining chip in the negotiations, and not
necessarily the most important one. Often other terms, such as the strength of
the buyer or the length of escrow, are critical to a seller.
Buyers get "prequalified" by a lender. This means that you spend a
few minutes on the phone with a lender who asks you a few questions. Based on
the answers, the lender pronounces you "prequalified" and issues a
certificate that you can show to a seller.
Sellers are aware that such certificates are WORTHLESS, and here's why! None of
the information has been verified! Oftentimes, unknown problems surface! Some
of the problems can include recorded judgments, child support payments due,
glitches on the credit report due to any number of reasons both accurately and
inaccurately, down payments that have not been in the clients' bank account
long enough, etc.
The way to make a strong offer today is to get "pre-approved". This happens AFTER all information has been checked and verified. You are actually APPROVED for the loan; the only loose end is the appraisal on the property you want to buy. This process takes anywhere from a few days to a few weeks depending on your situation. It's VERY POWERFUL tool and very useful to have in your negotiating arsenal.
Sell First, Then Buy
If you have a house to sell, sell it before selecting a
house to buy! A contingent sale is a hard sell, unless it's with a new
homebuilder who has other houses to sell and can afford to put one on a
contingency.
Let's pretend that we go out looking for the perfect house for you. We find it
and you love it! Now you have to go make an offer to the seller. You want the
seller to reduce the price and wait until you sell your house. The seller
figures that's a risky deal, since he might pass up a buyer who DOESN'T have to
sell a house while he's waiting for you. So he says OK, he'll do the
contingency but it has to be a full price offer! So you see, you paid more for
the house than you could have because of the contingency.
Now you have to sell your existing house, and in a hurry! Otherwise you lose
the dream house! So to sell quickly you might take an offer that's lower than
if you had more time. The bottom line is that buying before selling might cost
you TENS OF THOUSANDS of dollars. If you're concerned that there's not a house
out there for you, then go on a window-shopping trip. You can identify possible
houses and locations without falling in love with a specific house. If you feel
confident after that, then put your house on the market.
Another tactic is to make the sale "subject to seller finding suitable
housing". Adding this phrase to the listing means that WHEN YOU DO FIND A
BUYER, you will have some time to find the new place. If you don't find
anything to your liking, you don't have to sell your present home.
Make A List
Before house hunting, make a list of things you want in the
new place. Then make a list of the things you don't want. You can use this list
as a scorecard to rate each property that you see. The one with the biggest
score wins! This helps avoid confusion and keeps things in perspective when
you're comparing dozens of homes.
When house hunting, keep in mind the difference between "SKIN AND
BONES". The BONES are things that cannot be changed such as the location,
view, and size of lot, noise in the area, school district, and floor plan. The
SKIN represents easily changed surface finishes like carpet, wallpaper, color,
and window coverings. Buy the house with good BONES, because the SKIN can always
be changed to match your tastes. I always recommend that you imagine each house
as if it were vacant. Consider each house on its underlying merits, not the
seller's decorating skills.
Don't Be Pushed Into Any House
Your agent should show you everything available that meets
your requirements. Don't make a decision on a house until you feel that you've
seen enough to pick the best one. Go to the Multiple Listing computer with your
agent to make sure that you are getting a COMPLETE list.
Don't forget to check into the SCHOOL DISTRICTS of the area you're considering.
Information is available on every school, such as class sizes, percentage of
students that go on to college, SAT scores, etc. You can get this information
from your agent or directly from the school.
Stop Calling Ads!
A word of caution - agents create ads
solely to make the phone ring! Many of the homes have some drawback that's not
mentioned in the ad, such as traffic noise, power lines, or litigation in the
community. What's not mentioned in the ad is usually more important than
what is. For this reason, be very careful when reading ads. Remember that the
person writing the ad is representing the seller and not you! The most
important thing you can do is having someone on your side looking out for your
best interests. Your own agent will critique the property with an eye towards
how well it meets your needs and will point out any drawbacks you should know
about.
Pick an agent you feel comfortable with
and enlist the services of that agent as a buyer's broker. Then you
become a client with all the rights, benefits, and privileges created by
this agency relationship, and you're no longer just a shopper.
Did you know that many homes are sold WITHOUT A SIGN ever going up or an AD
EVER BEING PUT IN THE PAPER? These "great deals" go to those people
who are committed to working with one agent. When an agent hears of a great
buy, whom do you think he's going to call? His client, who he has a legal
obligation to work hard for, or someone who just called on the phone and said
"keep your eyes open"? So to get the best buy on a property, hire
your own agent and stick with him. It would be an honor to represent you in
this endeavor and put YOUR interests first!
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Marc Gohres Real Estate Specialist 3230 South Buffalo Drive, Suite 105 Las Vegas, Nevada 89117 Phone (702) 768-8598 Fax (702) 646-5624 |
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Last updated on 11/04/2006
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