ochomesales.info

To buy or not to buy? – that is the question.

My brother is currently in the process of trying to buy a house with his girlfriend. They have a realistic deposit between them but have been renting for the past year together and have decided to try and get somewhere bigger.

They are however getting the usual sales speel from the estate agents. Now I’m in sales, so I know most tricks in the book, trying to get people to up their offer, saying that someone else is interested in the property, saying that you have a slightly lower offer than someone else but the current owner prefers you etc.

In these current times of recession you have to play as hard as they play.

The house is on the market for £125,000. However it needs a minimum of £25,000 worth of upgrading; kitchen, bathroom, central heating to name a few. Their initial offer was £105,000.

It was refused straight away. They then however put in an immediate offer of £110,000 to which the response was “well, it’s better, but I think the owner is holding out for £115,000. There are a few other parties interested in the house so let us know asap”.

By putting in an immediate improved offer of £110,000, the estate agent obviously knew they were keen immediately used the ‘fear of loss’ card by saying there were other parties interested and that they should try and meet £115,000. The problem is, this would only leave them with £10,000 to do the property up, and could cause arguments when they are living in a house which is clearly old fashioned and needs a hell of a lot of work.

They were claiming that the estate agent would not lie to them and try to get more money if the house clearly wasn’t worth £115,000, but believe me – estate agents will do anything to line their pockets. They are not interested in the buyer’s needs, they are concerned about making the sale at the best possible price.

I persuaded them to not go back with an immediate offer of £115,000 and they agreed it would look a little desperate. They haven’t heard back yet but I get the impression that the house is still on the market and they could be receiving a call saying that their offer has been accepted very soon.

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Buying a home can be an emotional, time-consuming, and complex process. There are a few things that you can do to help make the process go as smooth as possible:

1. Check your credit.

Before you apply for a home loan, regardless of your credit, it’s a smart idea to obtain a copy of your credit report from the three major credit bureaus and review the information. If there are errors or things that need to be addressed, it’s easier to address them before you have found a house, than after you have found a house and are trying to close your loan.

If you know that there are a few blemishes on your credit, let your lender know what they are, why they are there, and why you are a still good credit risk. Lenders look at your credit to determine how likely you will pay back the loan. If you had extenuating circumstances – like a loss of a job or medical bills – let them know so that they understand that it is not likely to happen again in the future.

2. Get approved before you buy.

An approval means that a lender has reviewed your credit history, verified your assets and employment, and has approved your loan before you have found a home to purchase. As long as the home appraises for at least the purchase price, the loan should close.

Getting approved also gives you an advantage over other buyers. Your firm approval makes it easier for you to negotiate on the price of a home, than a person who is not approved or is pre-qualified.

While getting pre-qualified may sound official, it is really just getting an idea of what you can afford. Its having a person plug in a few numbers that you give them – your monthly income and your monthly debt – and getting an approximate payment calculated. From the payment, the calculator can approximate the house price range that you can afford. No information is verified. Because your assets, income or credit is not verified, a pre-qualification has little value when purchasing a home.

3. Find a great buyer’s agent.

Traditionally real estate agents represent the sellers in a transaction. When you are not working with a buyer’s agent, they are less likely to negotiate the best price or contingencies for you.

A buyer’s agent’s job and fiduciary responsibility (meaning legal duty) is to you, the buyer. Before working with an agent, establish if they are a buyer’s agent or a seller’s agent. After spending a lot of time with a Realtor, it’s natural to feel like you’re a team. But if they are not negotiating for you, then they are not on your team.

A qualified, competent real estate agent will help you navigate the myriad of decisions that arise when buying and selling a home. An agent provides value to the homeowner in many ways:

• Pays for all marketing and advertising costs.
• Adds experience and expertise in all aspects of the sales process including marketing, financing, negotiations and more.
• Handles all showings.
• Brings a network of known, trusted real estate professionals. If your agent doesn’t have the answer, he or she likely knows someone who does.
• Always has your interests in mind so you always have someone on your side.
• Can handle and advise on all price and contract negotiations.
• Provides you with all the possible options and opportunities without holding back.
• Gives an unbiased, realistic view of your home and your options. Unlike buyers and sellers, an agent has no emotional attachment to property.
• Has the knowledge to help you ask the right questions.
• Being a third party, potential buyers are more likely to tell your agent the truth about your home, even if it is unflattering. This objective viewpoint will help you make the necessary changes to get your home sold.
• Your time is valuable. A real estate agent allows you to spend your time how you want.