Here’s a list of my current best practices for BUYERS for the Spring Market 2014
1. Arrange for your mortgage financing up front before you even start to look for a home. Your mortgage broker will help you focus on your ideal price range, your maximum loan and whether there are any credit issues you should correct before buying. They will also prepare a “pre-approval” letter … which you will provide the seller when you are ready to make an offer.
2. Familiarize yourself with the purchase contract details and ask questions. Ask your agent to explain the process of negotiating and counter offers.
3. Use buyer representation. It is important to have an agent who owes his total loyalty to you. Discuss your representation options with your agent. If you are purchasing one of your agent’s company listings make sure you understand what your agent can and cannot do for you.
4. Review the seller’s disclosure before you make an offer. Your offer should reflect your knowledge of the condition of the property. The seller’s disclosure will tell you of any known repairs or conditions that would affect what you would be willing to pay. You should know this before you decide on an offering price. If you are unsure go back with the agent and look at the home after you have reviewed the disclosures. Also note, not all brokers use seller’s disclosures … doesn’t make sense to me but there are no state/national laws requiring disclosure. If they don’t use disclosures it doesn’t mean they are hiding anything but you would be wise to assume there are problems not readily visible on a quick walk-through and adjust your offer accordingly.
5. Ask the seller to provide a home warranty when you write the offer. This will cover you for some items that malfunction during the first year of ownership. Cash used for down payment, closing costs, and other home necessities can deplete your cash reserves. A home warranty will reduce the risk of a future drain if a warranted item needs repair that first year.
6. Get the property inspected by a licensed professional home inspector. They will let you know the true condition of what you are buying. Follow the inspector’s advice if he/she recommends that you have another expert inspect a troublesome item. During the inspection you should also ask your inspector to explain how to work or maintain appliances or systems in the home, they are a wonderful resource to help you learn “how to drive the house”.
7. Ask your buyer’s agent to prepare a market analysis of the property before you make the offer. A seller’s agent cannot do this for you. You should know what similar properties are selling for so that you don’t overbuy. Also, if the seller remains firm on his price, you will be able to tell if the value is really there.”