How to Buy Right

Sunset Creek RealtyNow that you have decided to purchase a house, there are a number of things you should know.

First, you should get a handle on what you can afford (see our qualification page). Then, obviously you should have an idea of what you want to buy i.e. location, style, size, amenities etc. Next, and even for those who have owned several homes previously, you should get familiar with the tests and home inspections that are available today. Also, understanding the real estate transaction process will also encompass the legal element, contracts, the mortgage process as well as coordinating moving. All these we can help you with.

Once you get ready to buy, one of the most critical areas you need to know is:

How to Buy Right

In other words, how do you posture yourself to get your DREAM HOUSE, Making An Offer They Can’t Refuse – but at YOUR PRICE!!??

In any market, many consumers think the highest offer is a sure-fire way to claim ownership of their dream home. But the smart agent and buyer know that bidding for a house doesn’t always require upping the stakes.

Prepare. If you are willing to make the investment, then you must be a qualified, solid, desirable buyer. Get a copy of your credit report and settle any debts that may be outstanding. You’d be surprised how many people get turned down for a loan because of an old debt they had forgotten all about. Get pre-approved for loans and mortgages. The seller wants and needs an ideal buyer, someone who is stable and ready to make a commitment to the property. In all likelihood, you are going to get a mortgage anyway, so get it FIRST, and do NOT let it be a point of concern for the seller in negotiations. Going into the negotiation process as a pre-approved buyer puts you at a major advantage. Statistics show that buyers save 1%-2% in the buying price.

When you find the ideal property and are ready to pull the trigger, sit with your agent, review the property disclosures and town hall information, and get answers to the following:

Specific to the Property

HOW LONG HAS THE PROPERTY BEEN ON THE MARKET?

Why: The length of time a property has been on the market may indicate the seller’s willingness to negotiate.

HAVE THERE BEEN ANY PRICE REDUCTIONS DURING THE LISTING PERIOD?

Why: The amount of any price reduction, as it relates to the overall purchase price, may indicate the seller’s desire to attract an offer.

HAVE THERE BEEN ANY OTHER OFFERS ON THE PROPERTY?

Why: It will be helpful to know what offers have been turned down and for what reasons.

WHAT IS THE MOTIVATION OF THE SELLER?

Why: Motivation is a key element in any negotiation. As an example, if the seller has already purchased a new property, your ability to close quickly may be an attractive element of the negotiation.

WHAT PERSONAL ITEMS ARE INCLUDED IN THE SALE?

Why: Anything the seller is willing to leave behind that you won’t need to buy when you move in has real value. Consider those items in your offer.

Specific to the Neighborhood

WHAT IS THE PRICE RANGE OF SOLD PROPERTIES IN THE AREA? 

Why: This information is important since it will indicate the top and bottom of that specific market.

WHAT IS THE AVERAGE TIME ON MARKET FOR PROPERTIES IN THIS AREA? 

Why: Short market times may indicate a seller’s market. If this is the case you may face competition from other buyers.

WHAT IS THE LIST TO SALE PRICE RATIO IN THIS AREA? 

Why: This information will indicate seller’s past willingness to negotiate and by how much.

WHAT IS THE AVERAGE SALES PRICE PER SQUARE FOOT OF RECENT SOLDS? 

Why: This approach to establish value works best in P.U.D. and/or where there are similar homes, lot sizes, and improvements.

WHAT OTHER KNOWN FACTORS ABOUT THE PROPERTY OR NEIGHBORHOOD COULD AFFECT VALUE? 

Why: Review the Seller’s Disclosure Statement very carefully with your Sales Associate.

Accommodate the seller. As a buyer, you have to be flexible and willing to sacrifice a bit. Whether it’s being willing to close one month earlier or later, do your best to meet the seller’s desired closing time. Also, while you should have a complete home inspection, be willing to overlook the more minor but less-than-perfect characteristics of a given home because other prospective buyers may not be able or willing to do so. If the seller is under pressure and wants the house sold quickly, they’ll prefer to work with the buyer who can accommodate them the most.

Connect with the seller. Create a rapport with the seller and let them know why you prefer their house to others. Homeowners are emotionally connected to their home. Even when selling their home, they often feel tied to the integrity of the house. Because the seller loves the house, they are usually inclined to sell it to someone who will love it too.

Clean up your act. Eliminating as many contingencies as possible will give you an advantage when involved in a bidding war. If you have a home to sell before purchasing, sell it first. Reducing uncertainty makes the buyer more appealing to the seller and will create leverage for the buyer.
Show them the money. Be willing to increase the size of your down payment or make an all-cash offer. Sometimes the best way to win a bidding war and avoid paying a higher price is to increase your down payment. Sellers favor strong buyers. If you can afford to make an all cash offer, do so. That’s almost always a definite way to slam-dunk a sale.

Work with the best in the biz. Be sure to choose a sales associate who has an excellent reputation with other agents. Sunset Creek Realty  is known in the industry for their professionalism, credibility, and honesty, and will always work in the buyer’s favor. So call today!

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