You’ve Worked Too Hard For Your Money To Needlessly Give It Away!

When you're buying home, there are many important issues, large and small, that you should be aware of to maximize your buying strength.

It is essential to be as informed as possible in order to properly prepare yourself in the process of buying a home. There are several issues that will certainly cost you if you are not ready.

Because there are many issues to consider, your first step is to consider choosing reputable and experienced professionals to represent your interests. When selecting your real estate agent, ensure you find someone who has extensive experience with the process. They should also refer you to a local real estate lawyer who can ensure your interests are protected.

If you’re like most homebuyers, you have two primary considerations in mind when you start looking for a home. First, you want to find a home that perfectly meets your needs and desires, and secondly, you want to purchase this home for the lowest possible price.

When you analyze those successful homebuyers who have been able to purchase the home they want for thousands of dollars below a seller’s asking price, some common denominators emerge. Although your agent's negotiating skills are important, there are three additional key factors that must come into play long before you ever submit an offer.

THESE STEPS WILL HELP YOU SAVE THOUSANDS WHEN YOU BUY A HOME

Step #1: Make sure you know what you want.

As simple as this sounds, many homebuyers don't have a firm idea in their heads before they go out searching for a home. In fact, when you go shopping for a place to live, there are actually two homes competing for your attention: the one that meets your needs, and the one that fulfills your desires. Obviously, your goal is to find one home that does both. But in the real world, this situation doesn't always occur.

When you're looking at homes, you'll find that you fall in love with one or another home for entirely different reasons. Is it better to buy the 4-bedroom home with room for your family to grow, or the one with the big eat-in kitchen that romances you with thoughts of big weekend family brunches? What's more important: a big backyard, or proximity to your child's school?

Far too often people buy a home for the wrong reasons, and then regret their decision when the home doesn't meet their needs.

Step #2: Don't shop with stars in your eyes: satisfy your needs first.

If you're lucky, you'll find a home that does this and also fulfills your desires. The important thing is to understand the difference before you get caught up in the excitement of looking.

Step #3: Find out if your agent offers a "Buyer Profile System" or "House-hunting Service".

These services take the guesswork out of finding just the right home that matches your needs. This type of program will cross-match your criteria with ALL available homes on the market and supply you with printed information on an on-going basis. A program like this helps homeowners take off their rose-colored glasses and affordably move into the home of their dreams.

To help you develop your home buying strategy, use this form:
What do I absolutely NEED in my next home?
1. ______________________________
2. ______________________________
3. ______________________________
4. ______________________________
5. ______________________________
6. ______________________________
Other:

What would I absolutely LOVE in my next home?
1. ______________________________
2. ______________________________
3. ______________________________
4. ______________________________
5. ______________________________
6. ______________________________
Other:

How Sellers Set Their Asking Price

For you to understand how much to offer for a home you’re interested in, it’s important for you to know how sellers price their homes. We've presented this information before from the seller's point of view, but it makes sense to repeat it here to help you understand what motivates the price sellers ask for.

Here are 4 common strategies you’ll start to recognize when you begin to view homes:

Strategy #1: Clearly Overpriced.

Every seller wants to realize the most amount of money they can for their home, and real estate agents know this. If more than one agent is competing for your listing, an easy way to win the battle is to over inflate the value of your home. This is done far too often, with many homes that are priced 10-20% over their true market value.

This is not in the seller's best interest, because in most cases the market won't be fooled. As a result, the home could languish on the market for months. This creates problems for the seller in that:

Strategy #2: Somewhat Overpriced.

About 3/4 of the homes on the market are 5-10% overpriced. These homes will also sit on the market longer than they should. There is usually one of two factors at play here: either the seller believes that their home is really worth this much despite what the market has indicated (after all, there's a lot of emotion caught up in this issue), OR they've left some room for negotiating.

Strategy #3: Priced Correctly at Market Value.

Some sellers understand that real estate is part of the capitalistic system of supply and demand and will carefully and realistically price their homes based on a thorough analysis of other homes on the market. These competitively priced homes usually sell within a reasonable time frame and very close to the asking price.

Strategy #4: Priced Below the Fair Market Value.

Some sellers are motivated by a quick sale. These homes attract multiple offers and sell fast - usually in a few days - at, or above, the asking price.

Discuss these sales strategies with your agent. Together, you'll be able to use this information to help you structure an offer that will motivate the seller and potentially save yourself a lot of money.

To sum up, by being aware of these and other issues, and by seeking advice from an experienced real estate professional and obtaining legal counsel, you can protect yourself against potential mistakes.