5 WAYS TO AVOID LOSING WHEN BUYING YOUR DREAM HOME
Note: Not every market is not the same. I am based out of South East Idaho we primarily do business in Idaho Falls, Pocatello, Rexburg and Rigby. Our website www.idahomefinder.com has listings advertised for the entire area. As we have helped clients buy and sell homes in Idaho we have discovered some trends!
- Let go of preconceptions – Buying a home is not like it once was, the market is a constantly shifting and evolving thing! For instance, it used to be commonly said “Do not pick a house until you have seen at least (enter arbitrary number here)” The introduction of the internet has made it much easier for consumers to be able to see several homes at a time without ever leaving the couch. I am not saying that it is a good idea to buy a home sight unseen, but it is quite common now that consumers only see one or two homes and then pick their home!
- Negotiate to WIN –The common“Come in LOW to get the best deal” is one of the worst plans when negotiating the purchase of a home in my opinion. I am a third generation Realtor and have been able to benefit from A LOT of experience that came before me, we have learned through countless negotiations what has been the most helpful technique when negotiating the purchase or sale of a home. The target negotiated price is a moving variable based on how long the home has been listed, the price compared to the market and current interest in the property. The easiest way to explain it is to aim with your agent (call me in you want help) for the spot that is going to annoy the other party but allow it to go through. The more counters that happen cause both parties to lose more often then not. Either the parties dig in their heels or get offended.
- Timing – The too common“Sleep on it” -The best advice I can give you here is that you should “rest” the night before. I am not saying make a rash decision or an impulse buy but to be prepared to buy a home when you go out to see them. I have had many clients not take my advice when it comes to this and they lost the home that they fell in love with. You should have your financing in order and a purchase plan in order with your agent when you go see a home that you think you will like. Since the interest rates are so low a lot more people can buy homes than has been the case traditionally. Due to this there is quite a bit more competition and the homes that are exceptional sell exceptionally fast.
- Terms are VERY important – Depending on your timing and budget sometimes including closing costs or a quicker close date are things you really want to consider when you make an offer. Make sure you know the closing costs your lender will charge before you go in to negotiation (general number is 3%) After you discuss terms make sure to check the paperwork that your costs and dates line up with your expectations. Agents are generally good at the paperwork but 2 sets of eyes are better then one.
- Get an Inspection – It is quite often that people opt to not have an inspection. I have seen this above most other things come back to get buyers quite often. Having a reputable and solid inspector can help you find and avoid a whole wide range of problems. A home warranty is great but does not cover everything that can happen to your new house. As the years have progressed building code has changed to protect the consumer but most older homes are not current (this is OK) you just need to be aware of special things to watch at your home. Also asking for repairs goes better generally when your claim you take to the seller is backed up by a professional.
I hope you find this helpful! I am always here to help educate and take the confusion out of real estate for you. Just let me know what you want to know!