WHY DO I NEED A BUYERS REPRESENTATIVE?

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HOW NOT TO OVER PAY FOR YOUR HOME

This article helps you become a savvy buyer, by pointing out some of the pitfalls inherent in the home-buying process. These include such things as knowing what you want before you begin shopping, taking your time to shop, choosing the right realtor, and remaining objective while viewing potential homes.

Before You Shop, Develop A Needs VS Wants List Everyone has a picture of an ideal home. This would include all the features you not only need, but have long desired. However, when it comes time to buying a home, the desires cost more. While it’s nice to think about having a beautifully landscaped backyard, or a solarium, perhaps even some built-in appliances, these are usually considered luxury items, which can add considerably to the price of your home. With such a list in your hands, you’re less likely to be caught up in the excitement of the pursuit. You’ll have a good idea of what you want, within you price range, and if you can afford those additional items.

Get Pre-Approved Prior To Shopping

Visit your financial institution or work with a broker prior to home viewing. Quickly, you’ll know the amount of mortgage you’ll receive. Be sure to get a mortgage commitment in writing. Depending upon market conditions, a seller may lean towards an unconditional offer. You’ll have less negotiating power if you have to wait for mortgage approval.

Banks and financial institutions have developed many programs especially for home buyers, be that first-time buyers or those with equity in their homes. When you review your needs and objectives with a lending officer, you’ll be one step closer to purchasing your home.

Your Realtor Will Assist With Your Team
With a professional FULL TIME realtor on your side, you’ll have access to these services, already in place, and highly recommended. A good agent has the knowledge and experience developed from many years of helping both buyers and sellers. During this time they have developed a network of people, from lenders, lawyers, home inspectors and movers, to assist both home buyers and sellers.

It’s Still True – Location, Location, Location
A home is not a stand alone item. Rather the value of a home is greatly affected by the surrounding homes. Don’t let your emotions determine your purchase. Always think resale. The desirability and resale value of your home depends largely on location more than any other factor. People want a desirable community that includes character, quality of schools, access to work, major transportation arteries, recreational facilities, etc.

On your viewing trips, take a careful look and ask the following questions: How does this home compare to others in the neighbourhood? Are yards fenced?  Are front and backyards and the exterior of the homes properly maintained?

Walk around the neighbourhood and get a feel for the people living in the area.

Additional factors that affect the property value of a home include traffic, sounds, smells, zoning bylaws. Be objective. Don’t rely too heavily on your emotions. Be sure you are completely satisfied with the neighbourhood. If you choose a neighbourhood with problems, you likely won’t get as much as you hoped with it comes time to sell.

Use Your Realtors’ Knowledge Of The Community
Your Realtor is trained in all aspects of Real Estate, including understanding supply and demand, economics and the neighbourhoods of the city in which they practice. As they regularly view homes as they are placed on the market, they are at the heartbeat of knowledge and information about housing trends and prices. They can save you time and money, by narrowing your prospects to only those that meet your requirements. It is a very time consuming process to view every home available that meets your needs.  A comprehensive knowledge of the available homes in your neighbourhood is one of your Realtor’s strongest assets. With the aid of computerized systems, a Realtor is notified within hours when a home becomes available.

Check Your Emotions And Shop With Your Head
When people purchase a home on emotion, without an objective view of the property, problems may develop later. Shopping for a home is an emotional process. It could be costly. Using your head, along with asking for an objective opinion (from your Realtor) could help you avoid costly errors.

Pay Attention To “Red Flags”
When evaluating a home, be sure you know the difference between acceptable and unacceptable problems. Cosmetic items like peeling paint, worn carpeting, unattractive wallpaper can be easily remedied. You could use these as negotiating items, as there will be costs involved in updating the home.

Major problems, however, are clearly “red flags.” Look for items such as major foundation cracks, water damage, outdated electrical systems, and inadequate plumbing. These items could cost you dearly in the future.

Hiring A Home Inspector Is A Wise Investment
A home inspection is an inexpensive way to gain peace of mind, and guard your pocket book. A proper inspection will cover all areas of the house including foundation, electrical, heating, plumbing, floors, walls, ceilings, attic, roof, siding and trim, porches, patios, decks, garage and drainage. A professional inspector can give you an objective view of the property, with a written report, indicating the present condition and items that will need repair.

Be Cautious With Fixer Uppers
Some people may be inclined towards purchasing a home that needs some work. This could be a challenge and an opportunity to make money. Sometimes, a fixer-upper can be purchased below market value, and sufficient repairs made to bring it to a good sale condition with a profit realized. However not all fixer uppers will bring in the profits you might expect. It depends upon the price of the home, the amount of repairs needed and the market conditions at the time of sale.  Before you purchase what looks like a quick way to profit, carefully consider the condition of the home and ALL the repairs that need to be made.  Complete a comprehensive budget. Also consult with your Realtor. She can give you an idea of what you can reasonably, expect to recover when the home is put back on the market.

Consider Your Future Needs
Take a look at your lifestyle now and in the future. Will you need extra space for a home office, a child, or perhaps a child moving back home? Perhaps it may be easier and less expensive if you purchase a home that can meet these needs now, rather than moving up to a larger home a few years later.

Proceed Quickly
When you’re ready to buy, move fairly quickly. Every home that shows well, is priced well, sells well!! All to often Buyers are disappointed they missed out on "the one" due to a hesitation. The fall back is from there on, they often compare all of the other homes to "the one" they lost. Your Relator knows if it's priced right. This is especially true when there is a shortage of homes available. As part of the MLS network, a Realtor has access to properties within hours of when they are listed.   You save time and effort, and you can view only those homes that come closest to your needs.

Clarify Relationships
In any real estate transaction, be very clear about who is working for whom, and what the relationship represents. Many people believe that the agent they are working with automatically represents them and their interests. Yet, without specific disclosures this is not true. Unless otherwise stated, the agent represents the seller in transactions for the sale of a home. This agent, as part of his or her fiduciary duty, must ensure his loyalty protects the Seller’s position throughout the entire process.

Ask For Comparable Sold's
A Comparative Market Analysis (CMA) is an analysis of comparable homes in the neighbourhood. It shows you the sale prices of comparable homes in the neighbourhood, along with asking prices of other homes in the area currently on the market.  With this valuable information, you’ll have the appropriate evidence for either a too-high asking price, or one that is a bargain.

Investigate the Seller’s Situation
Knowing about the seller’s reasons for moving could work to your advantage during negotiations. For instance, a seller who has been transferred to another city, may be more motivated to sell rather than someone who is still shopping for a new home. A vacant house, a house that has been on the market for several months and reduced in price, could also be indications of a motivated seller.

Be aware Of The Totality Of Your Costs
There is more to a home than simply the mortgage. You will be responsible for other items including mortgage insurance, appraisal fees, legal fees, inspection fees, transfer taxes, title insurance, inspections, etc. Your Realtor can give you a good idea of the costs associated with buying a home that are beyond the final negotiated price of your home.

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