Finding Your New Home
Searching for the perfect home can be overwhelming. To avoid wasting time looking at homes that aren’t right for your family, first set aside time to determine what you need in a home. If you and your real estate agent have a clear idea of what you’re looking for, you’ll spend a lot less time visiting houses that don’t appeal to you.
Location
When dealing with real estate, location is almost everything. Along with size, location is one of the biggest determinants of price, so don’t be surprised if your desire for a certain part of town comes at a higher price. Once you know your price range, you should be able to narrow your options down to a few areas. Don’t just consider your commute to work, but also think about schools, proximity to grocery stores, theaters, restaurants and parks. If you find a deal that seems too good to be true, research the property thoroughly to see if the house is in a flood plain, near a sewage plant or has other environmental problems.
Size and features
Do you need more bedrooms? A home office, media room or game room for teenagers? Do you have dogs and want a large yard? Make a list of everything you want in your new home, from number of bedrooms and bathrooms, to details like crown molding and stainless steel appliances. It can help to consider what you don’t like about your current home, condo or apartment. For example, do you enjoy cooking but have little counter work space in your kitchen?
Prioritizing needs and wants
Once your have your list, rank each feature. This will help you determine what you must have in a home, and what would be nice to have. Give this list to your agent, clearly stating what are must-haves and deal breakers, then let your agent find homes that match your criteria. The list will help your agent understand what’s important to you, so they can screen listings for you. And remember that while your list helps you prioritize what’s important, don’t get stuck on features you can change if the rest of the house is perfect. It’s easy to paint cabinets, replace faucets and add a fence to the yard.
As your home search progresses, give your agent feedback on the homes you’re viewing. Make sure he or she understands what each home is missing. And if you find that your needs change, make sure you communicate that to your agent.
Making An Offer
Once you’ve found the right home, the next step is to make an offer to the seller. This can be a nerve wracking step in the home buying process, especially since you stand to spend a great deal of money and there is a chance that the seller will reject your offer. Here are a few things to keep in mind when making an offer on a home.
The asking price is just that. Remember, an asking price is just that. Work with your real estate agent to choose the right price for your first offer. Some things to consider: what other homes in the area are selling for, the condition of the home, and how long the home has been on the market.
A home that needs considerable repairs and updates or one that has been on the market for a long time may warrant making an offer that is lower than the seller’s asking price. But if the house is in excellent condition, has gotten a great deal of attention from other buyers and is priced appropriately, it’s usually best that your offer stick closer to the asking price, or even be higher however, your agent will review the comparable sales and advise you on the market value of the home and an appropriate opening offer.
Keep in mind your bargaining chips. Remember that price isn’t everything. Getting preapproved for your mortgage, not having a sale contingency and being flexible on the closing date can all make your offer more attractive. Contingencies can also include home inspections, repairs or leaving major appliances. There may be other parts of the contract that are important to the seller; being flexible will help you. The easier you make the deal for the seller, the better chance you have of having your offer accepted.
Put it in writing. A written proposal is the foundation of a real estate transaction. Oral promises are not legally enforceable when it comes to the sale of real estate. Therefore, you need to enter into a written contract, which starts with your written proposal. This proposal not only specifies price, but also all the terms and conditions of the purchase. For example, if the seller offered to include the 65″ plasma television in the family room, make sure this is included in your written offer and in the final completed contract.
Possible Seller Responses to Your Offer The seller has four options after receiving your offer, they can accept it, reject it, submit a counteroffer, or not respond at all and ignore your offer. You will have a binding contract if the seller, upon receiving your written offer, signs and accepts it just as it stands, unconditionally. The offer becomes a firm contract as soon as you are notified of acceptance. If the offer is rejected, that’s it – the sellers can not later change their minds and hold you to it.
If the seller likes everything except the sale price, the proposed closing date, or the flat panel television you want left with the property, you may receive a written counteroffer including the changes the seller prefers. You are then free to accept it, reject it or even make your own counteroffer. For example, we accept the counteroffer with the higher price, except that we still insist on having the flat panel television.
Each time either party makes any change in the terms, the other side is free to accept, reject or counter again. The document becomes a binding contract only when one party finally signs an unconditional acceptance of the other side’s proposal.
Negotiating
The art of negotiating is just that! Only an artful negotiator can take two sides with opposing interests and bring them to consensus. No formula can be applied to the process; no scientific equation can bring it about. And the back-and-forth communication that is negotiating is a huge part of the home buying and selling process.
A favorable negotiation involves your buyer’s agent working with the listing agent to arrive at an agreement on not only price, but also terms and conditions, such as a home sale contingency, seller paid closing costs, time of possession, inclusions and exclusions, and will a Home Warranty be offered. As with any bargaining session, the discussion can get bogged down; but a professional knows how to avert problems. It’s about working through any potential sticking points to bring the talks to a mutually satisfying conclusion. This is where most deals fall apart, so it’s best not to tackle this oh-so-important business dealing without the help of a skillful negotiator.
Having an expert negotiator manage the sale of your home is just one more reason to work with an experienced real estate professional. Make sure your agent offers; capable representation, objective counsel and caring guidance for this process.
