- Take stock of your situation and make sure that you are ready
to buy a house, whether it is your first or not. Look at
how long you will be in the area, at your job, family size,
tax
benefits, etc. Be sure it makes sense to buy now!
- Have a realistic idea of how much you can afford before you
start looking. Get a FREE pre-qualification letter from
a mortgage professional or online company. Not only
will this save time, but will also avoid disappointment
on everyone's
part. These days, most offers to purchase include a
pre-qualification letter.
- Discuss what your particular needs are with
your family or partner before you start to look at properties.
List
your "must
have" features and your other "nice to have,
but not absolutely necessary" features. After viewing
a few properties, re-evaluate your criteria. Needs will
change
over time. Be sure to include neighborhood criteria.
Those are much harder to change than a few coats of
paint.
- Be cautious of signing an agreement with an
agent! Most will state that you are obligated to pay a commission
no
matter how you find the home. Instead, tell them that a
commission
will be paid only if you buy a property shown to you
by that agent. This enables you to look with other agents,
and at For Sale By Owner properties, at your own convenience.
- Don't bring an agent with you to look at FSBO
properties, or bring them into the picture when it's time to
draw
up a contract, unless you are willing to pay their commission
through either a higher sales price, or out of your
own
pocket. Otherwise, you may risk losing the house.
- If you find the house you want to buy before
you have sold your home, and the seller is reluctant to sign
a contract
with you with the contingency that you sell your home
first, use the Contingent Sale Addendum as a part of your
contact.
This allows the seller to continue marketing and advertising
their property yet gives you the "first right of
refusal" should
they receive another offer. This way you will be notified
immediately if the seller has another offer, giving
you an opportunity to re-offer if necessary.
- If you sell your house before finding another
home you want to buy, be sure your sales contract is contingent
upon
you, the seller, finding suitable housing! We have heard
stories
of people frantic to find a home, and even having to
rent after the closing, because they sold their home first,
before
buying another. Remember, the seller is legally bound
to sell once the contract is signed.
- Most states require that the seller (not the
real estate agent) complete and sign a Property
Disclosure Form,
stating
the condition of all aspects of the property, before you
make
an offer. If the seller does not have one, tell them
you must see one before you make an offer. The forms are
easily
obtained from the state's commission on real estate
or the local For Sale By Owner office.
- When presenting an offer, be courteous and
respectful of the sellers. Make sure that everything you want
in the contract
is written down in the contract. Also be prepared for
a counter offer, don't let it scare you! In most cases,
it
is seldom that an offer is accepted as it is first submitted.
- In all cases, make your offer contingent upon
the property appraising for the selling price or higher. This
will
protect you even if you feel you have agreed to a higher
price than
you at first wanted to.
- Request a final walk-through of the house
a few days before closing and after the furniture is removed
to make sure
that there are no faults that were covered by the sellers'
personal belongings. It is much easier to request compensation
and/or necessary repairs before the house is closed
than afterwards.
- Make your offer contingent upon the property
passing a professional home inspection. Be realistic when requesting
repairs.
This is also an excellent way to become more familiar with
the
upkeep needs of your future home.
- PUT EVERYTHING IN WRITING!
|
