I have many clients calling to go house shopping. As I mentioned in past blogs, there is preparation to be done before, during and after you find the home of your dreams. Lack of proper planning may result in pitfalls that can be costly in the long run - including wasted time, a crappy purchase and buyer’s remorse. Following a few simple steps will help your buying experience be less stressful and better your chances on getting the home you desire.
1. Failing to Find Financing First – Just like shopping for anything, you need to know how much you can spend. A home is no different. Your spending budget is determined by what the bank is willing to lend you. I’ve heard far too often from clients, “I have good credit, so getting a loan will not be a problem,” or “My budget is $300,000 because that’s what I want to spend.” Excuses such as these will cause the buyer to waste time looking at homes they may not be qualified for. Also, knowing what you are pre-approved for will help you calculate what monthly payment you will be in store for and better plan to see if it’s in your financial budget.
2. Making a Low Ball Offer – All buyers want to pay the least amount possible, but submitting an offer too low could be a waste of time. Sellers will not entertain low ball offers, and it can hurt your chances if you are really interested in the property. Also, if there are multiple offers, you may not have the chance to negotiate. Submit your highest and best offer to have a real chance in obtaining the property
3. Not Getting an Inspection – When buying a home, you are responsible for all maintenance when you close the deal and walk away with the keys. It is always advised to have an inspector look for things you cannot see – latent defects. Plumbing, termite damage and a substandard structure are some items that will be revealed in an engineer’s report. As a side note, when buying a Co-Op, the complex is responsible for these and other items, so you are protected. An inspection may still be ordered, but it’s rare.
4. Failing to Have an “Out” – You should make sure your attorney has clauses in the contract that will allow you an “out.” For example, a clause that states if the inspection comes back with material defects and the seller fails to address them, the buyer can rescind the offer. You don’t want to be stuck with a headache after you walk away from the closing table.
Do your research when you are ready to consider buying a home. There is substantial planning involved, and you want to make sure you get the most for your money. The Internet is a very useful tool. Use it or contact a Realtor for assistance.
Over the years, I've been blessed to have spent time with, befriend, love, learn from and share experiences with people who have helped me grow and inspire me everyday. They have shared words of wisdom, strengthened me with encouragement, gave me joy with a smile, comforted me with a hug, gave clarity to my visions and dreams and renewed my spirit with faith. It is through family and friends that I manage to be happy and hopeful.
These relationships work because we share our philosophies, our personal truths and an outlook that prompts us to seek something greater in all and in ourselves. Sharing a journey heartedly illuminates our lives and enriches our experiences. It keeps us moving....always evolving....ever changing.
I have been transformed by the wisdom, opinions, insights and revelations of those who have shared their journey with me. It's a blessing I long to share with you through my first ever blog. For me, writing is a reflection of my own direct experience and I look forward to all of you sharing your thoughts and experiences with me.
So...with that said....can I just say.....??? :-)