Home Buying Tips
Congratulations on your decision to buy a new home. I will provide you with information that will help you take this big financial step.
The first step:
Don't get Pre-qualified! Get Pre-Approved!
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 positions possible. Price is only one bargaining chip in the negotiations, and not always the most important one. Often other terms, such as the strength of the buyer or the length of escrow, are critical terms to a seller.
In the past it was always recommended that buyers get “pre-qualified” 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 your answers, the lender pronounces you “pre-qualified” and issues a certificated that you can show to a seller. Today sellers are aware that such certificates are worthless, and here is why: none of the information has been verified! Many times problems surface like recorded judgments, inaccurate and accurate glitches on the credit report, etc.
So, the way to make a strong offer now is to get “pre-approved.” This happens after all the information has been verified. You are actually approved for the loan and the only loose end is the appraisal on the property. This process takes anywhere from a few days to a few weeks depending on your situation, however it's very powerful weapon for you to have in your negotiating arsenal.
Strategies for finding the perfect house
Before house hunting, make a list of things you want in a new place. Then make a list of things you don't. You can use this list as a scorecard to rate each property that you see, and the one with the biggest score wins!
This helps avoid confusion and keeps things in perspective when you are comparing dozens of homes.
When house hunting, keep in mind the difference between skin and bones.
The bones are the things that cannot be changed, such as:
- The location
- View
- Size of lot or square footage
- Noise in area
- School district
- Floor plan
The skin represents easily changed surfaces like:
- Carpet
- Wallpaper
- Color
- Window coverings
Always imagine each house as vacant. Consider each house on its underlying merits, not the seller's decorating skills.
Hiring me as your agent
The most important thing you can do is having someone on your side looking out for your best interests. As me as your agent I will critique the property with an eye towards how well it meets your needs and will point out any drawbacks you should know about.
When you hire me as your buyers agent, you become a client with all the rights, benefits and privileges created by this agency relationship.
The Process: Buying a Property
Once we find the property you would like to purchase Time is of the essence.
We will sit down and go over the contract and the terms we would like to include, such as:
- All personal property to be included
- Financing terms
- Closing date
- Attorney and inspection terms
- Completion of necessary riders (lead paint, property disclosures, ect.)
- Any other negotiable terms
- We will review the comps and determine the offering price.
When completed, you will sign the contract. You will also provide a check for earnest money, If the contract is accepted, this amount will be increased as to the terms of the contract and held in escrow until closing.
I will contact the listing Broker that we have an offer.
- I will meet or discuss over the phone the terms of this offer
- The seller and the listing Broker will review the terms of the offer to determine if and what their counter will be.
- The listing Broker will contact me to negotiate their counter offer. We may negotiate back and forth multiple times.
Once everyone involved agrees on the terms of the offer:
- The contract is signed by the seller and all parties involved receive a copy
- Time is of the essence… receipt does not take place until we receive a copy, at which time the, “Clock starts Ticking”
- Sellers and Buyers contact their attorneys.
- Copies of the contract are forwarded to the attorneys for their review as outlined in the purchase contract.
- Copies of the contract are forwarded to the lender and Condo associations, when applicable.
- An inspection may or may not performed upon your request (as outlined in the purchase contract). After which, any mechanical or structural defects of concern shall be negotiated with the seller to be remedied.
- Your lender / mortgage broker should be contacted to proceed with the loan application are outlined in the purchase agreement.
- As outlined in the purchase agreement the terms of the attorney's approval property inspection and mortgage requirement are met in a timely matter.
- 24-48 hour prior to close of escrow you will be able to do a final walk-through.
- Close of escrow take place and moneys are distributed.
