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Helpful Strategies for Home Buyers

By
Industry Observer with Retired

Helpful Strategies for Home Buyers

 

ActiveRain Ambassador Debbie Reynolds is sponsoring one of the April contests for blogger members of ActiveRain. You have until the end of this month to submit your entry.

 

Hot Market Strategies - An ActiveRain Contest

Here's the challenge: Share 3 strategies, tips or ideas that increase the chances your offers are noticed and accepted. 

 

The first thing I suggest is to be very careful with your selection of a buyer agent. You want to have an agent with a proven record of success in the local market where you plan to make your purchase. Do not hesitate to ask for verifications. If you are talking with a RE/MAX agent, for example, their membership in the Platinum Club indicates that they received over $250,000 in commissions last year. Personality does count. Agents who are well liked by other agents receive a preferred welcome. Commit to your buyer agent and do not visit any properties unless your agent is with you.

My second second suggestion is to obtain pre-approval for any needed mortgage financing that you will need. Select a well know local loan officer with several years of successful production experience. An outstanding loan officer will tell you exactly what you need to do and will recommend the type of financing that will best meet your needs. You want to have an impressive pre-approval letter to submit with your contract. 

My third suggestion in a hot market is to make smart business decisions rather that emotional reactions. There are often multiple contract situations when you will feel like you are in a bidding war. Do not get caught up in the scene and overpay for a property. Real estate markets are not always in a rising mode and you do not want to end up with a mortgage that exceeds the value of your home when you are ready to sell in a few years. Be fair in your negotiations and try to keep the terms as simple as possible from the perspective of the home seller. Always opt for a home inspection but focus on the significant information in the report.

My bonus suggestion is to select a well known local title company to assure a smooth settlement process. In Kentlands, for example, I always recommend Village Settlements where an attorney always conducts the settlement.

 

Hibiscus, Longwood Gardens, Kennett Square, PA USA IMG 8323 Canon PowerShot G11 Camera Photograph by Roy Kelley  Roy and Dolores Kelley Photographs

Hibiscus, Longwood Gardens, Kennett Square, PA USA IMG 8323
Canon PowerShot G11 Camera
Photograph by Roy Kelley 
Roy and Dolores Kelley Photographs

Posted by

Roy Kelley, Retired, Former Associate Broker, RE/MAX Realty Group

Gaithersburg, Maryland  

Comments (12)

Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Hi Roy... no doubt, your third suggestion about not being emotional in a hard market is a good one... and that goes for buyers, sellers, and their agents, all.

Apr 25, 2017 11:18 AM
Roy Kelley
Retired - Gaithersburg, MD

Nina Hollander 

Home buyers should fully understand the possible consequences when they offer more than the current market value.

Apr 25, 2017 11:24 AM
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

Buyes in this market need to be aware of the way things may play ourt so they are ready.

Apr 25, 2017 01:52 PM
Myrl Jeffcoat
Sacramento, CA
Greater Sacramento Realtor - Retired

I like #3, "My third suggestion in a hot market is to make smart business decisions rather that emotional reactions."

Apr 26, 2017 02:59 AM
Roy Kelley
Retired - Gaithersburg, MD

Thank you very much for your comments. It is always good to hear from you.

Apr 26, 2017 03:37 AM
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Wise advice for all those in the business, Roy.  They can all learn from your experience.

Apr 26, 2017 05:56 AM
Debbie Reynolds, C21 Platinum Properties
Platinum Properties- (931)771-9070 - Clarksville, TN
The Dedicated Clarksville TN Realtor-(931)320-6730

Hi Roy, I like your advice on not getting caught up in emotion and overpaying. The day of reckoning may be sooner than we think. Thanks for sharing 3 smart practices.

Apr 26, 2017 05:07 PM
Roy Kelley
Retired - Gaithersburg, MD

Good Friday morning to all. Have a great day and an outstanding weekend.

Apr 28, 2017 07:25 AM
Kasey & John Boles
Jon Gosche Real Estate, LLC - BoiseMeridianRealEstate.com - Boise, ID
Boise & Meridian, ID Ada/Canyon/Gem/Boise Counties

Roy, you are spot on with these tips - and I agree with your bonus tip.  A good settlement agency can make a huge difference in the transaction along with a great agent and lender.  Have a great Saturday! -Kasey

Apr 29, 2017 09:11 AM
Carol Williams
Although I'm retired, I love sharing my knowledge and learning from other real estate industry professionals. - Wenatchee, WA
Retired Agent / Broker / Prop. Mgr, Wenatchee, WA

Hi Roy,
All great tips for buyers.  I love #1, of course.  

Apr 30, 2017 12:49 PM
Roy Kelley
Retired - Gaithersburg, MD

I noticed that I now have over 1,800 followers. Thank you very much for following my blog. 

May 01, 2017 03:34 AM
Roy Kelley
Retired - Gaithersburg, MD

I hope you enjoyed the weekend. Dolores and I attended a wine festival on Saturday afternoon.

May 08, 2017 04:02 AM