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These days, sellers give very little
credence to such certificates. Some even consider them
WORTHLESS! Why? None of the information has been verified
by the lender!
In many cases, previously unknown
problems can surface, including past judgments, alimony
payments due, glitches on the credit report (both accurate
and inaccurate, for any number of reasons), down payments
that have not been in the clients' bank account long
enough, and a number of other issues.
The strongest buyers today get "pre-approved.”
This happens AFTER the information provided to a lender
has been verified. At this point, you are actually APPROVED
for the loan. The only loose end is the appraisal on
the property, which can take anywhere from a few days
to a few weeks, depending on your situation. Pre-approval
is a VERY POWERFUL weapon that I recommend all of my
clients have in their arsenal, as a pre-APPROVAL will
put you in a much more desirable position at the negotiating
table.
2. Sell your old home first, then make a deal on
a new one.
If you
have
a house to sell, finish the sale on it before selecting
a home to buy. A contingency buyer isn't nearly as appealing
as a ready, willing, and able buyer. Consider this scenario:
You've found the perfect house - now you have to make
an offer to the seller. You want the seller to reduce
the price and wait until you sell your house. The seller
figures that this is a risky deal, since he might pass
up a buyer who DOESN'T have to sell a house while he's
waiting for you. So he agrees to the contingency deal,
but only with a full-price offer! You have now paid
more for the house than you would have without the contingency,
and you have to sell your existing house in a hurry!
So, to sell quickly, you might take an offer that is
much lower than what you might get if you had more time.
The bottom line: Buying before selling could cost you
THOUSANDS of dollars!
If you're concerned that there is
not a house on the market for you, do some window-shopping
before you put your house up for sale. You can identify
desirable homes and locations without narrowing in on
a specific house and potentially getting a less-than-stellar
deal on it. If you feel confident that you can find
a home after some brief looking, then put your house
on the market.
Another tactic is to make the sale
of your existing home "subject to seller finding suitable
housing.” Adding this stipulation to the listing means
that WHEN YOU DO FIND A BUYER, you will have a reasonable
amount of time to find a new home without pressure.
If you don't find anything that suits you, then you
are not obligated to sell your home.
3. Add up the pros and cons.
When preparing to house hunt, make
two lists: one list of things you want in the new place,
and another of things you absolutely don't want. Take
your lists along when you visit a property or open house,
and use them to rate each home you see. The one with
the most positives wins! This will help you to avoid
confusion, jog your memory, and keep things in perspective
when you're comparing dozens of homes.
In considering the different aspects
of a home, you will want to learn and recognize the
difference between STYLE and SUBSTANCE. SUBSTANCE is
a set of things that cannot be changed, such as location,
view, size of lot, noise in the area, school district,
and floor plan. STYLE represents surface and aesthetic
elements that can be changed, like carpet, wallpaper,
colors, and window coverings. It is wiser to buy a house
with SUBSTANCE, because the STYLE can always be changed
to match your tastes. I always recommend that buyers
imagine each house as if it were vacant, evaluating
the home on its own merit, not on the seller's decorating
skills.
4. Don't be pressured into buying any home.
Don't make a decision on a house
until you feel that you've seen enough homes to choose
the one that best suits your needs and desires. Your
agent should represent your interests, showing you everything
available that meets your criteria. If you’re not fully
confident in the purchase, keep looking.
A decade ago, homes were selling
quickly, usually a few days after listing. In that kind
of market, agents advised their clients to make an offer
ON THE SPOT if they liked the house. For the time and
the market climate then, that was good advice. That
same sense of urgency is not always present today, unless
a home is drastically under-priced. If that is the case,
you'll know it.
Don't forget to check into the SCHOOL
DISTRICTS in the area you're considering. A wealth of
information is available on every school. This will
include class sizes, the percentage of students that
go on to college, SAT scores, and more. Our team will
assist you in easily obtaining
school information for Tampa Bay area.
5. Stop calling newspaper ads!
Newspaper and internet ads are sometimes
created just to make the phone ring! In fact, the homes
featured in these ads likely have some drawback that's
not mentioned up front, such as traffic noise, power
lines, or litigation in the community. Things that are
intentionally left out of an ad are usually more important
than what is there.
For this reason, please, please
be very careful when reading and responding to ads.
Remember, the person writing the ad is representing
the seller, NOT you! The most beneficial thing you can
do is to enlist the help of someone who will look out
for your best interests. Your own agent will critique
the property, noting how well it meets (or does not
meet) your needs. He or she will point out any drawbacks
that you should know about. Whether you decide to work
with the Lance Mohr team or not, choose an agent that
you trust to represent you as a buyer’s broker. Doing
so affords you all of the rights, benefits, and privileges
of a relationship with an agent, and you're no longer
just a shopper. Did you know that many homes are sold
WITHOUT A “FOR SALE” SIGN ever going up, and WITHOUT
EVER BEING LISTED in the paper? When an agent hears
of a great buy, who is he going to call? His client,
of course, to whom he has a legal obligation to work
hard. To get the best deal you can, I always recommend
that you hire your own agent and stick with him or her.
I would sincerely like to help
you with all of your real estate needs. My extensive
knowledge of real estate investing, 1031 exchanges,
and all aspects of home construction and sales can save
you THOUSANDS of dollars and HOURS of time when buying
a home. Please do not hesitate to give me a call.
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