After you get pre-approved and figure out the area that you are intersested in, it's time to start looking at specific homes in person.
Start out with a good home search tool such as the one on my website. It gets updated every night automatically from the MLS. It has both the FMLS and the GAMLS data. Sites such as Zillow might have nice graphics but the status of their listings are sometimes months behind. I have people who use Zillow and find out that half of the homes they are interested in that are said to be available on Zillow are actually pending sale and not available to be shown.
First you can search by area, price, bedrooms, school district etc. Maybe you can get it down to about 50 homes. From these, you can probably eliminate a fair number by looking at them on a satellite map. You can see which ones back up to busy roads or detention ponds or big power lines. I just wouldn't bother with homes with location issues.
I would pick homes mostly around your target price but also some higher and some lower. If your target is $300,000, you might want to look from $250,000 to $350,000. Then you'll know what you gain by going higher and what you lose by going lower. You also never know when a higher priced home will drop their price.
You can eliminate some after looking at the pictures. But when in doubt, it's probably best to go ahead and take a look at it just in case. Don't eliminate homes just because the listing agent isn't a good photagrapher.
The 12-12-3 Plan.
Get it down to about 30 homes and send me your list. Most likely several of those homes will be under contract even though they say they are available in the MLS. I won't know until I start setting up appointments. You'll probably end up with a list of 24. Divide that into two tours of 12, each taking about 3-4 hours. So in one weekend, you can see 24 homes, 12 on Saturday and 12 on Sunday.
Many agents will say that you only need to see 3-5 homes and it's a waste of time to see any more than that. I say "poppycock" to that. When you go shoe shopping, how many pairs do you try on before you decide? Deciding on a home is a big darn deal. Give it the time and effort it deserves. Things you can only determine by a personal visit are flow of floor plan, light in the home, privacy in backyard, smells, condition, room sizes and many other details that could be important. I can be the best listener on the planet but only you have the vision in your head of what is acceptable. It doesn't matter what I like. You are the one who will be living there so make sure it feels right. You can't return it to the store and get a refund.
Hopefully you'll end up with three homes that you really like which is what we are shooting for in the 12-12-3 plan. (See 12 homes one day, see 12 homes another day, get it down to 3 good contenders)
If not, you will be able to now refocus your search. The reality is that searching is a dynamic process. Once you are out there and you see homes in person, your preferences might change or you'll realize that certain things are more important than you originally thought.
If we need to keep looking, we'll set up a search in the MLS so you'll receive automatic emails everytime a new home comes on the market that meets your criteria.
I really like the information that I can send to you directly from the MLS vs. what comes from my website home search tool. Here's an example of the detailed listing sheet. You get to see where the bedrooms are located. Three bedrooms in the basement is a lot different than if all of them were on the second level. It also gives HOA fees along with a lot of very detailed information.
The system sets up a page for you that keeps all of your listings organized. When there are price changes you are notified. If a home comes back on the market you get an email alert. In a competitive market like we are currently in, you have to have a system that notifies you quickly or else you'll miss out on some really good opportunities.
When we are out looking at homes, you can take notes on the printouts. Start ranking them and only need to remember your top three. You can step into a home and quickly determine if it's worthy to kick out one of your current three contenders. If not, a quick look around and we are off to the next one.
At the end of day two, we can circle back and revisit your top three choices again and look at them in more detail.
The ultimate position to end up in is with three very strong contenders. Then you are in the driver's seat. If seller number one doesn't meet your price, then you just move on to contender number 2. To speed up the process, we can just make three offers simultaneously and let the seller's compete for your business. That's what we cover in Part 4. Making simultaneous offers in order to get the best deal.
Part 1: Choose a Payment You're Comfortable With, Not What You're Approved For
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