Do you want to get the best house you can
for the least amount of money? Then be in the strongest
negotiating position possible.
Price is only one part in the negotiations,
and not always the most important one. Often other terms,
such as the strength of the buyer or length of escrow, are
critical to a seller. At one time, it was recommended that
buyers get "pre-qualified" by a lender. You would spend a
few minutes on the phone with a lender who asks you a few
questions and based on the answers, the lender pronounces you
"pre-qualified" and issues a certificate that you can show to a
seller.
Sellers are now savvy that such
certificates are worthless! None of the information has
been verified! Oftentimes there are hidden problems! I've
seen 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 be "pre-approved".
"Pre-approval" means that all information
has been checked and verified. You are actually approved
for the loan and the only remaining issue is the appraisal on
the property. This can take anywhere from a few days to a few
weeks depending on the situation, but it is a powerful tool in
negotiations.
If you have a house to sell, sell it before
selecting a house to buy! Contingency offers carry much
less weight in the negotiating process, because anything can
happen. You often times end-up with a
"first-right-of-refusal situation that can have everybody's
tensions running high. The seller figures this is a
risky deal, since he might pass up a buyer who does not have s
house to sell while he's waiting for you. So if the seller
takes a contingency, he/she wants a full price offer! In
this scenario you pay more for the house than you could have
because of the contingency.
Also, you must now sell your existing
house, and quickly! Otherwise, you lose the house you
want! So to sell quickly you might take an offer that's
lower than if you had more time. Overall, buying before
selling might cost you a lot of money.
Always, make a list of, at least, nine
things you want in your new place. Then make a list of, at
least, nine things you don't want. "Nine of this and none
of that". Use this list as the pros and cons of each
property. It adds some objectivity to your home search.
It also makes things much easier for your agent, saves you time,
and keeps things in perspective.
Your agent should show you everything
available meeting your criteria. Make sure you have seen
an adequate number of properties. Don't take the first
thing you see! Check the location, schools, neighborhood,
etc. This is a major decision. Talk to your agent
about the pros and cons of each area. Think about how your
life will be changed or enhanced by your decision. Don't
feel shy about communication. Your agent is there to help.
Ads are written to get your attention and
often negative details are omitted. So be careful
when reading ads. The person writing the ad is
representing the seller and not you! Have someone looking
out for your best interests and needs. Your own agent will
critique the property to see how well it meets your needs and
will point out any drawbacks you should know about.
Remember, many homes are sold without ever being listed.
These deals go to those people who are committed to working with
one agent. Your agent is constantly looking for the
perfect property to fit your needs. So to get the best buy
on a property always get your own agent and stick with him or
her.
Prepared
by: Re/Max Home & Ranch - 303-646-9000
