6 Tips on Buying
Are you or someone you know thinking of entering the housing market? Some real-life tips on how to succeed as a buyer:
Go low. In a market where nearly everything is selling at or above list value, look at properties below your budget. This will hopefully free up some capital to offer above list and show you’re financially strong enough to buy the home and then some.
Dollar, dollar bills ya’ll. Offering $35,000 above list price means jack to a seller if you're financing the purchase and can’t make up the amount of appraised value vs purchase value. If you want to offer above list value, make sure the seller knows you can handle the financial burden in case it does not appraise for your offered price. For example: my buyer wants a home that is listed for $400,000. We offer $415,000 contingent on it appraising only for the list price of $400,000...and we send proof of funds!
Keep it simple, silly. I will never, ever, ever advise a client to forego a home inspection. This is a HUGE purchase. You won’t even buy shoes without trying them on but you’re gonna buy a home without checking it out? NOPE. That being said, you can make the home inspection process so simple for the seller that it will likely not be the reason you win or lose an offer:
Make it pass or fail. Meaning, no negotiation on repairs will take place and you’ll either cut contract and walk away or take the home “as-is.”
Set a tight deadline: Instead of 10 or 15 days before you have to have it inspected, have it at 5 or less. Better yet, have your agent set up the home inspection prior to submitting the offer and send confirmation of tentative inspection to the seller so they know you are ready to GO!
It’s not just about the purchase price. Yes, any seller will want the most money for the home but that’s not ALL they want. Your agent should be reaching out to find out what can be done to “sweeten the deal.” As long as it’s not in violation with TREC, it’s all on the table. Do the sellers need a lease-back scenario so they don’t have to move immediately upon closing? Do they need an extended close date? Would they prefer not to have to move the hot tub? I have seen it all lately: a new fridge for their new home, a vacation, moving expenses covered, a housewarming party complete with a DJ. It’s crazy town out there so get ready to get a lil crazy.
Seriously...hire the RIGHT Realtor. Part time agents or ones that have done a deal here or there will likely cost you the deal in a market as competitive as this one.
Be patient, grasshopper. In a market where there is little inventory and a ton of thirsty folks…you may be waiting a little longer than you were prepared to endure. You may even lose a few offers before the right one pulls thru. Or, the perfect home may not hit the market for months at a time. It’s a marathon, not a sprint. Lace up, my friends!