Never Fall In Love With The House

 First Time Homebuyers, How-To Negotiate  Comments Off on Never Fall In Love With The House
Aug 162013
 

RULE NUMBER ONE in my Playbook for First Time Buyers: NEVER FALL IN LOVE WITH THE HOUSE.

 

Of course, you often have no choice. The reason is simple: buying a home is a very emotional process. You’re going to LIVE there! You’ll create new life experiences and, frankly, that’s emotional.

 

But when you’re shopping for a home and you want to win at negotiations with a home Seller, or, you just want to be treated with respect by crazy aggressive real estate agents, you have to tamp down your emotions.

 

I believe in the negotiating tactic of “first one to leave the negotiating table wins.”

That’s really what I mean by “never fall in love with the house.”

 

How To WIN:

1. Move quickly: Offer your price promptly, don’t explain your price, and sit back and wait for the Seller’s response.
2. Be prepared to sign a purchase agreement (contract of sale) and get your home inspection immediately your Offer is accepted.
3. Watch the Seller’s reaction to your prompt, efficient moves.

  • Does the Seller respond in a timely manner?
  • Does the Seller’s real estate agent put up barriers to your Offer being presented/accepted?
  • Is communication between all parties clear and concise?
  • Are the other parties driving you kinda sorta NUTS with ridiculous statements and/or demands?

 

If you get a negative or confusing reaction to these focus points then you need to WALK AWAY. Let the Seller chase after you. IF the Seller is serious about selling the home, they’ll come running after you. IF they have unrealistic expectations on price and/or terms then your walking away is going to save you a lot of headaches.

Don’t fall in love with the house;

be prepared to walk away so you can get what you want.

Do you have questions?  Click on ASK TREVOR and I’ll respond to any and all inquiries, even if you’re not buying a home in New York State.

Check out my Trulia profile HERE

Check out my Zillow profile HERE

Find me on TWITTER: @tcurranmortgage

Ask Trevor A Question

Make an OFFER NOW

 First Time Homebuyers, How-To Negotiate  Comments Off on Make an OFFER NOW
Aug 132013
 

When negotiating on the purchase of your first home, I strongly advocate making an Offer as quickly as possible.  Strike while the iron is hot!

 

I mean that you should make an Offer when you first visit

a home that meets the two following conditions:

 

  • Comes close to your “Wish List.”   The “dream home” exists only in our minds.  Smart first time buyers who search for a home by first creating a comprehensive wish list—and writing it down for constant review as you house hunt—can make a prompt decision on any given home.  When a home hits most of the points on your list, it’s time to make an Offer.

 

  • Matches Your Affordability Level.  I assume you have been properly prequalified by an experienced mortgage loan originator.  By knowing your “numbers” you’ll know when a given home matches your level of affordability for a monthly payment.  It’s all about monthly payment.  When a home matches what you can afford monthly, it’s time to make an Offer.

 

Make an Offer NOW; don’t go home and think about it! 

Too many first time Buyers do that and they wind up losing

out on a great house because of their tardiness. 

 

Here in New York you are not committed to the transaction at the Offer-stage; not until you sign a contract of sale with your Attorney (usually about a week later) are you prevented from changing your mind.  If you’re not in New York, check with your local Realtors and/or real estate Attorneys to see what you’re committed to at the point you make an Offer.

 

 

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Hope that helps!

Apr 092010
 

There is a deliberate process to making an offer and I include here a step-by-step set of instructions on how that works. More to the point: my instructions will help you get the house you want, even if you are dealing with a difficult Seller, a Bank-Owned property, or if you are competing against another Buyer for the same house.

 

I have seen these methods work many times over with my clients over my 26 year career as a mortgage professional.

green typical residential house door in Ireland (number 5, golden lock and handle)

 

My basic methodology here is one of making your Offer a very formal proceeding. When you take these formal steps you are demonstrating to everyone involved in the transaction just how serious a Buyer you are. You will set yourself apart from the crowd. I have seen this method work time and time again for my Homebuyer clients.

 

FIVE Steps To Making An Offer:


STEP 1. Always make offers in writing. Yes, it is absolutely true that offers can be presented verbally. Don’t do that. Put your offer in writing every time. Even if you are in a situation where you and the Seller are sending counter offers back and forth, every new offer should be in writing.

When your offer is in writing, you come across to the Seller as serious. Think about it, anyone who is taking the time to go in to the real estate office and sign the form is serious about buying a home.

Put the following into your written offer:

-The amount of your “earnest money deposit” or “good faith deposit.” That is the amount of money you’ll put into escrow with the Seller’s attorney upon signing the contract of sale.

-The amount of your mortgage financing. Of course you’ll back this up with a prequalification letter, but you must include the amount of your mortgage in the offer.

-Items included in the sale. If the appliances and the chandelier in the dining room are to be included in the sale, make sure they are written in to the offer. This shows the homeowner you were paying attention when you inspected the home and asked, “What’s included in the sale?”

-Attorney Information: the name and complete contact information for your attorney.

-Anticipated contract date. Always make this date within 48 hours of your offer. Present the assumption the Seller will accept your offer and immediately forward a contract to your attorney.

Again, this demonstrates to the Seller how serious you are. You are in effect saying, “I am so serious about buying this home I want to sign the contract immediately!” Imagine how many other Buyers out there are delaying things like signing the contract (and potentially changing their minds).

-Anticipated closing date. This is an interesting point for the offer. I always recommend putting the closing date for an offer within thirty days of the contract. The fact is most closings take place within 60 days of contract, and your attorney will most likely change that date in the contract, but if your offer says “thirty days,” once again you demonstrate how serious you are about buying the home.

mind the step caution sign on a blue wall background


STEP 2. Prequalification letter.
Your mortgage professional should be available to fax a prequalification letter within hours of your making your offer; even on Saturdays or Thursday evenings.

 

STEP 3. Mortgage pro phone call. I think a phone call from your mortgage professional to the Listing Agent is a home run. When the Listing Agent hears from the mortgage person directly how eminently qualified you are, imagine how that raises your profile in the mind of the agent and the Seller!

 

STEP 4. Home Inspection ready to go. When you sign your offer, be sure to tell your Realtor that you’ve already spoken with your Home Inspector and you can have the inspection done tomorrow. Whoa, that’s really the mark of a serious Buyer!

 

STEP 5. Get ready with your counteroffer. If you offered less than the asking price, then you need be prepared with your counter offer if the Seller either declines or counters your opening offer. All of the steps above should be repeated with the new price replacing the original number. Organization and swift responses rule the day! Oh, you may not want to counter offer. That’s okay, too.

Close-up shot of keys in the lock of open door. One key is in lock another hanging on the ring

Unlock the door to homeownership with this method

Good luck and Happy House Hunting!

Do you have questions?  Click on ASK TREVOR and I’ll respond to any and all inquiries, even if you’re not buying a home in New York State.

Check out my Trulia profile HERE

Check out my Zillow profile HERE

Find me on TWITTER: @tcurranmortgage

I welcome Comments for all my blog entries.  I will be happy to review and approve all legitimate comments provided by readers of tcurranmortgage.com.  If you wish to Comment on any entry, please do so and I will quickly review and approve.