Real Estate Tips


Pick the Neighborhood First:

All too often home seekers get excited about a home they see in an ad. Or, they hear about one with a great price, special financing, a bonus or some other unique feature like a 3-car garage. Then they want to go running right out and see this beauty and maybe write a contract on it.

A lucky break? A smart move? Or, a problem? Most of the time all they have found is a bad deal and, at best, wasted a lot of their time (and probably an agent's time) in the process. There is always a reason why a deal sounds and/or looks so good on the surface but upon closer inspection is not. The reason usually is location. Remember the old saying? Location - Location - Location.

The best approach is to:

1) Know your budget (get pre-approved);

2) Choose a desirable subdivision (location) within your budget;

3) Then pick the best home in that subdivision.

A good Realtor, preferably a Buyer's Agent (ABR) can help with all three of these basic steps. He can recommend a lender. He can provide information on price ranges and properties for sale in any subdivision. And then, he can help you make your home selection after you have chosen the best location.

 The Best Time to Shop

You have selected the subdivision. You have reviewed the list of homes in your price range. Now you want to "look inside" and, hopefully, make an offer and buy one. So, you call your Realtor and schedule some time for Saturday afternoon. Or, maybe after work. Right?

Wrong! Saturday may be your day off and "everybody knows Realtors work nights and weekends" (don't they?), but Saturday and after work isn't usually the best time to view houses and make offers. Wow!  Strange new information. Can this be true? Saturday (or Sunday) and evenings aren't good? Why not?

There are many reasons but let's start with the basics. First, it is better and easier to view a home when the sellers (and kids) are not there and that is usually weekdays, 9 to 5. Second, your offer gets submitted to the seller's listing agent who usually handles paperwork during weekdays, 9 to 5. Third, the listing agent will contact your lender to verify that you actually have the financing you said you had. Lenders work weekdays, 9 to 5.

If the basics don't convince you then consider this. Lots of other people also think weekends are the time to look and make offers. So, an offer submitted on the weekend has a much greater possibility of arriving at the same time as another competing offer. Do you really want to be competing with another buyer?

The best approach is to consider the house hunt and offer submission process for what it really is - a serious business decision. Take the necessary time off from work and go about it in a business like manner during business hours. After all, you wouldn't expect your doctor or lawyer to see you only on Saturday afternoons, would you?

 Scheduling the Closing

You have just found the dream house and your Realtor is writing up the offer to purchase. Since your lease expires on Friday, the 30th of next month, you figure you can schedule the closing for the morning and move in that afternoon. Pretty slick and easy and you don't have to pay any extra rent, right? Well, you better think twice about this.

Closing (also called Close of Escrow) is the day that the new home you are buying actually becomes ours. It is the day all the final paperwork is signed and, usually, the day that all the money changes hands (called Funding). Often, you may get the keys that day too (known as Possession). Note the use of the words "usually" and "often".

A problem exists which is similar to the "travel crunch" on the Wednesday before Thanksgiving. In real estate, things don't always happen exactly as planned, particularly at the end of every month and especially on Fridays at month end. Why? Lots and lots of other people are thinking just like you. The result is an "end of the month crunch".

Mortgage lenders, title companies and other service providers just can't handle the volume of closings that get scheduled for the last few days of the month. So, mortgage documents don't show up and closing get delayed. Or, the closing occurs but lender funding is delayed. The result is angry frustrated buyers who don't get Possession as planned.

The solution is simple. Schedule your closing to occur in the middle of a week during the middle part of the month. Also, be sure that you allow sufficient time - typically 30 days - for the escrow period. You might pay a few more days of rent but the pain and frustration saved will be well worth it.

 What To Do In A Hot Market?

The newspapers are awash with accounts of booming sales, records being set and commentary from area agents to support it all. The market is "hot". It seems that home sellers can name their price. Buyer's, on the other hand, better act quick or be left behind.

True? What to do? Well, the market may be very good but there is always more than a little hype in the reported stories. So, calm down and be careful how much stock you put in what you read.

Here are some suggestions that apply under all conditions, "hot" or not:

Sellers - Regardless of market condition there are always homes that take longer than others to sell. So, don't expect to just plant a sign and make a killing. Location, condition, curb appeal, market exposure and pricing are some of the factors in getting a sale. And, when an offer appears, don't be too greedy; your home just may not warrant full price.

Buyers - Don't let the hype scare you. Even in the hottest market here will be a home out there for you. First, arrange the financing. Then avoid being too picky; the perfect home just doesn't exist - at any price. And, don't hesitate when you find a nice one; waiting for uncle Joe to see it might make it someone else's home he sees. Above all, keep in mind that prices might be negotiable but probably not as much as you would like.

Both - The best way to sort through the hype in any type of market is to act sensibly and with knowledge. Your best resource is your Realtor. Let his professional skill and recommendations guide you through the process successfully. You'll be glad you did.