5 Powerful Buying Strategies
1. Get "Pre-Approved" for a mortgage
Do you want to get the best property you can for the least amount of money? Then make sure you are in the strongest negotiating position possible. Price is only one element 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.
A seller feels most comfortable taking his home off the market for a buyer who has already been approved. The way to make the strongest offer is to get "pre-approved". This happens AFTER all information has been checked and verified. You are actually APPROVED for the loan and the only loose end is the appraisal on the property. It's VERY POWERFUL and a weapon I recommend all my clients have in their negotiating arsenal.
2. Get a contract on your existing house, then shop for a new one
If you have a house you have to sell before you can purchase, wait till you get a contract on it before selecting a house to buy! Most sellers will not accept contingency contracts. And even if you find one who will, contingency offers aren't nearly as strong as one that comes in from a ready, able buyer. Consider this scenario: You've found the perfect house - 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 this is 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! You have now paid more for the house than you might have because of the contingency, and you have to sell your existing house in a hurry, otherwise you lose the house! So to sell quickly you might take an offer that's lower than if you didn't have that pressure. The bottom line is that shopping for a home before selling might cost you THOUSANDS of dollars.
If you're concerned that there is not a house on the market 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.
3. Biggest score wins!
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 may not be able to find a home with all of the wants, but you can use this list as a guide 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 "STYLE AND SUBSTANCE". The SUBSTANCE are things that cannot be changed such as the location, view, size of lot, noise in the area, school district, and floor plan. The STYLE represents easily changed surface finishes like carpet, wallpaper, color, and window coverings. Buy the house with good SUBSTANCE, because the STYLE 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.
4. Don't rush to make a decision...
But once you have made the decision, that's when you hurry. Buying a home is an important decision that should not be rushed, but once you have reached a decision on a specific home, don't let grass grow under your feet. If you like the home, there is always the possibility that someone else likes it and is making an offer at that very moment. Waiting could cause you to lose the home when a timely offer may have been able to save it for you.
5. Stop calling ads!
Please note - ads are many times created to make the agent's phone ring! And as often as not, the ad you call on, may actually be sold, depending on how long the ad process takes to be published.
Remember that the person writing the ad is representing the seller and not you! The most important thing you can do is have 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. So whether you decide to work with me or not, pick an agent you feel comfortable with and enlist the services of that agent as a buyer's representative. 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 some homes are sold WITHOUT A SIGN ever going up or an AD EVER BEING PUBLISHED? These "great deals" go to those people who are committed to working with one agent. When an agent hears of a great buy, who 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, I always recommend that you hire your own agent and stick with him or her.
Here are some other informational reports that you may find useful.
Buyer's Representation at No Cost to You!
A Few Points About Interest Rates
Credit Tips That May Lower Your Interest Rates
Getting Your Finances In Order
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