Remember the good old days when you could just go look at a home for sale and put your bid in on the home? Well, the days of simple home buying are long gone. Now it is not safe to buy a home without an Agent on your side. Use them to walk you through all the legal mumbo jumbo that we normal people cannot understand. Who pays them, you do, the seller has their own Agent to pay. You should also have a lawyer for looking through all that legal stuff.
You have to know if it is a buyer’s or seller’s market. A buyer’s market is good for you. A seller’s market is good for them. In 2008, when everyone was losing their homes, that was a buyer’s market. Now in 2017, with housing prices skyrocketing it is a seller’s market. The buyer must beware and do their homework on the home they want to buy. You need to have a home inspection. The seller has the right to be at the home inspection. Make sure the Home Inspector is licensed.
Home inspection findings that say AVOID this house:
- Radon in the basement
- A buried oil tank
- Out-dated or Exposed wiring
- Black Mold
These may cost you a lot of money in the long run. If you really want the house talk with the seller you may come up with an arrangement that suits both of you. It may have to be fixed before the bank will approve the loan.
Now in a seller’s market, you have to put to put your best foot forward. The seller has to like you to get the house in some instances. You may have to send them a Why I love your house letter. To make you stand out above all the others. Whoever started this trend should be sent to a corner. Like a buyer does not have enough to do. It is a trend maybe it will go away, til then do your best to write a good one.
Pricing and bidding wars work both ways. It’s all in the numbers, people are more willing to buy something ending in a nine then ending in a zero. Each side wants to think they are getting the better deal. Keep an open mind look into housing options you may not normally look at. Such as foreclosures, older homes, and auctions. Always be prepared for a bidding war, if you truly want the house. If you need a loan to buy a house make sure you have been prequalified, otherwise you may lose that dream house. I am a firm believer in a deal, so I have let many slide through my fingers. At the end of the day, I must not be ready to buy. In part 4, I will take a deeper look into Home Inspections.