I have seen and heard of so many buyers getting in the cars and driving around "looking" for their new home by visiting open houses. That is clearly NOT the best way to find the investment of your life. The agent is there for one reason and one reason only; to meet new buyers. The chances that the open house you drop in to is a good fit for you are very, very slim. And the qualifications of the agent are not apparent. They may have received their license in the mail yesterday. They may have no experience. Most successful agents have new agents hold their listing open for them as they don't have the time or the need to meet new clients.
Here are some tips:
1. Interview at least 3 real estate agents. You can call local offices and ask the owner/Broker for their best "buyers" agent or you can find them on the web. The reason for the interview is to see what qualifications the agent has and how knowledgeable they are about the city or area you are considering. You can also see if the personality of you and the agent is a good fit. In my opinion the company they work for is not that important. You don't need a big name company; you need a big time agent!
2. Select one and have them refer you to at least 3 lenders. Talk to the lenders and give them your financial information. That will need that to see exactly how much home you qualify for. You can spend less but to know the maximum that you qualify for is very important. Most listing agents will not even accept offers with out a letter from a lender and proof of the funds necessary to close the transaction. This is especially true is there are multiple offers on the property you select. Yes, there are multiple offers even in this market when the property is priced right.
3. Let the agent go to work for you immediately finding the home that fits your specific needs and wants. Let them do the "looking". When they find homes that fit your needs have them drive you to the homes. They may have several for you to see. That is good. Having choices gives you a great chance of finding that perfect home.
4. Do your "due diligence" regarding the home, the area, the schools, the taxes, and drive by the home at night to see how it looks and feels after dark.
5. Make a good offer; low balling the owner, if the property is priced right, will only upset them and that is the last thing you want. Remember the value of a home is determined by what the buyer is willing to pay AND what the seller is willing to accept.
6. Finally keep in mind that foreclosures can be a good deal but they are usually, if not always, sold "as is". So if you are not ready to own a "fixer upper" that may not be the way to go. In addition there are numerous investors WITH CASH buying up foreclosures. They can close very quickly and the banks like that.
7. Short sales also "seem" to be a good buy. Be aware that a short sale purchase can takes many months; some I have heard of have taken almost a year to be approved by the bank. They usually need repairs as well.
I hope these tips have helped you.
Best of luck finding your perfect home!
Jim Guido
Owner, Broker
California Real Estate Internet Group
San Clemente, CA
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