1) Get pre-approved by a reputable lender- Be sure you have a pre-approval letter in hand and present it with your offer to assure your strongest bargaining position.
2) Sell your present home first- Contingency offers are not at all appealing to most sellers. The seller has to typically wait until your house sells before he gets his money. Therefore, the seller is not willing to negotiate with you. So, either wait for your home to sell or get preapproved for a bridge loan in the event your home does not sell. Chances are pretty good that you may sell your present home before your closing on the new home.
3) Hire a top notch buyer’s agent- You need a knowledgeable Realtor with local expertise in the market place. You Realtor will work on your behalf and negotiate the best price and terms for you. In addition, your expert Realtor will assist with the home inspection, appraisal, and closing details.
4) Decide where you want to live- Remember the old saying “location, location, location, well it still remains high on the home buying list. You really need to study the neighborhoods, schools, proximity to work etc before making the final decision on your favorite neighborhood. Again, your buyer’s agent is a valuable asset in gathering information for you.
5) Search for homes online. There are many websites now that potential home buyers can search all homes on the market by price, neighborhood, schools, zip code, and maps. If you do your own preliminary searching it will save you a lot of time. You can actually ride by the homes that you like and take a look at the neighborhood to see if that is really where you would like to live.
6) Look at vacant and distressed Properties- Vacant properties often signal a motivated seller. The seller has probably moved out of town and often times is carrying two mortgages. Often properties that are in need of repair are overlooked because most buyers can not appreciate the potential. Maybe all it needs is a little paint and carpet. We call these properties a “diamond in the rough”.
7) Foreclosures and short sales- Have your buyer’s agent research all the foreclosures and short sales in your price range and location desired. Again, these can sometimes be bargain priced. Typically, they are bank owned and these days banks are pretty motivated to get them off the books.
Do your research-Ask your buyer’s agent for detailed information on the properties that you are interested in. You want to request a history on each property to see how long they have been on the market, price reductions, sold data, tax data, survey, and covenants and restrictions for the neighborhood. And be sure to get sold information for all properties in each neighborhood that you have interest in.
9) Don’t make your first offer the best one- Leave yourself some negotiating room in the event the seller counters your offer, which is typically what takes place. Determine the maximum amount that you are willing to pay to calculate your first offer. Again, your Realtor can advise you.
10) Meet the Sellers closing date- Many sellers have various personal reasons for a particular closing date and if you are willing to work with them, you may get a better price. http://www.cbbaker.com
