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What is Your Home Buying Strategy?

By
Real Estate Agent with eXp Realty of California, Inc. CA DRE #01490977

What is Your Home Buying Strategy?

 

Seriously considering buying a home, or are already immersed in the process? You need to have a strategy, especially in this competitive market.

 

What IS your buying strategy?

 

Do you have one? Or are you going about the process haphazardly?

 

Consider the following:

 

INTEREST RATES

 

Interest rates mean moneyInterest rates remain historically low. Check into the programs you may qualify for and what this means financially vis-à-vis your monthly budget. It’s essential to create your own personal budget, because what you may qualify for and what you are willing or able to actually spend may be very different. And understand what waiting to buy can mean for you if prices, and interest rates, go up.

 

GET PRE-APPROVED

 

No matter how much is said about the importance of a pre-approval, many prospective buyers don’t seem to think this is important to do up front. Hellooo. You need to know what you qualify to borrow with today’s tight standards, interest rates, and your financial status. If you got pre-approved before it will need to be updated. If you are not yet pre-approved, be prepared to provide lots of paperwork to document your financial status for the underwriter. And guess what – not everyone gets approved for a loan these days.

 

CONSIDER ALL AVAILABLE HOMES IN YOUR PRICE RANGE

 

What homes are for sale in your desired area and price range?You need to understand today’s market and what homes meet your budget requirements. While you may not be inclined to pursue short sales or foreclosures, in your area or price point those homes may be the bulk of your options. So your strategy should not only consider these homes but you must understand the risks and the issues as a buyer. Consider all your options so you can make the best choice based on your needs and financial means, and understand the risks and implications of the distress versus the typical sales.

 

BE DILIGENT IN YOUR RESEARCH, BUT DON’T LET ANALYSIS CAUSE PARALYSIS

 

Don't get too bogged down in on-line researchYou need to do your research to learn about the local housing market (the inventory, what selling and what’s not, sales prices) and educate yourself about the areas you like, the purchase process, and other issues that are important to you (crime, schools, taxes, amenities). But don’t get so bogged down with searching on-line that you neglect the real world – explore the neighborhoods that interest you and drive by homes that appeal to you on-line – sometimes what you see on-line and the reality are rather different.

 

WORK WITH A QUALIFIED REALTOR IN YOUR MARKET

 

Use a Certified Residential Specialist (CRS)I strongly encourage you to work with a knowledgeable REALTOR, someone who knows your local market and can help you navigate the transaction, especially if you are considering short sales and REOs. Distress sales can be complicated and frustrating and you want someone who will be an advocate for you, in any transaction, and not be a paper-pusher. After all, buying a home is all about you, not your agent.

 

If you aren’t committed to the process a strategy won’t make a difference. But not having a strategy sure can hurt you if you are a serious buyer. You need to have a good idea of what you want to buy, what your needs are, and where you want to live. A strategy won’t do you much good if you don’t know what your ultimate goal is.

Posted by

Jeff Dowler, CRS
Certified Residential Specialist / Realtor®


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Show All Comments Sort:
Ginny Gorman
RI Real Estate Services ~ 401-529-7849~ RI Waterfront Real Estate - North Kingstown, RI
Homes for Sale in Southern RI and beyond

Jeff, it is amazing the few in my area who heed the advice to get pre-approved & then find they can not quite buy the home they want...it makes so much sense to get a home you can afford, build some equity & then find another affordable home.

Nov 15, 2012 08:01 PM
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Congratulations on the featured post. I hope buyers will read this post and call you for help in buying a house.

Nov 15, 2012 08:22 PM
Jill Sackler
Charles Rutenberg Realty Inc. 516-575-7500 - Long Beach, NY
LI South Shore Real Estate - Broker Associate

The entire process can be lengthy and stressful but, with a strategy, you'll be successful in the end.

Nov 15, 2012 08:44 PM
Michael Setunsky
Woodbridge, VA
Your Commercial Real Estate Link to Northern VA

Jeff, excellent advice! Buyers need to be aware of what is involved when purchasing a home.

Nov 15, 2012 09:22 PM
Janis Borgueta
Newburgh, NY
Retired RE Salesperson

Jeff.. this is important for buyers to know. They should have all the information on what it costs to purchase the home, move in AND then still be able to not only pay the mortgage but to enjoy their lives.. A budget is super important.. and therefore needs a strategy

Nov 15, 2012 09:27 PM
Amanda Christiansen
Christiansen Group Realty (260)704-0843 - Fort Wayne, IN
Christiansen Group Realty

This is a great list Jeff.  Buying a home isn't easy and you definitely need a strategy.  Congrats on the well deserved feature!  

Nov 15, 2012 09:43 PM
Ed Silva, 203-206-0754
Mapleridge Realty, CT 203-206-0754 - Waterbury, CT
Central CT Real Estate Broker Serving all equally

Jeff, when it comes to buying a home, there is no such thing as too much preparation or research. The process flows better when a professional Real estate agent is there to lead the way.

Nov 15, 2012 10:03 PM
Dr. Paula McDonald
Beam & Branch Realty - Granbury, TX
Granbury, TX 936-203-0279
I love the analysis paralysis comment! So many people get stuck on the numbers alone. And as you pointed out, there are many other factors involved!
Nov 15, 2012 10:23 PM
Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

Michelle - so true. And then there are some who don't given that advice and should

Tom - well I certainly believe it is in their best interest, especially in this more competitive market with multiple offers and confusion about what is really going on becuase of conflicting media reports.

Jeff

Nov 15, 2012 10:55 PM
Rhonda Duffy
Duffy Realty of Atlanta & Rainmaker Realty - Milton, GA
#1 Retail Listing Agent in the U.S.

Great post and excellent points-- Thank you for sharing

Nov 15, 2012 11:04 PM
David Grbich
Realty One Group - www.FindCARealEstate.com - San Juan Capistrano, CA
Orange County Real Estate - 949-500-0484

Excellent advice - important to get ready to buy but avoid analysis paralysis which is a showstopper in this market. Regards Dave

Nov 16, 2012 12:10 AM
Bill Gillhespy
16 Sunview Blvd - Fort Myers Beach, FL
Fort Myers Beach Realtor, Fort Myers Beach Agent - Homes & Condos

 Hi Jeff,  great remonders.  Working with a nice couple who " Have to think about it ! "  and have lost two favorites while the market goes forward.

Nov 16, 2012 03:54 AM
Gary Frimann, CRS, GRI, SRES
Eagle Ridge Realty / Signature Homes & Estates - Gilroy, CA
REALTOR and Broker, Notary

Jeff, great post and certainly worthy of a feature.  I think you really touched upon all the points for buyers.  There is a lot more than just price...

Nov 16, 2012 05:20 AM
Evelyn Kennedy
Alain Pinel Realtors - Alameda, CA
Alameda, Real Estate, Alameda, CA

Jeff:

Good advice for buyers.  If we keep harping on these things that buyers must do, eventually they will accept what we say as true and do what we ask them to do.

Nov 16, 2012 05:45 AM
Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

Ed and Tracy - thanks for the compliment. I think it makes a lot of sense. I tend to find most buyers are being fairly focussed in their search, at least the ones I am working with. Hope all is well there!

Ginny - plus it has gotten so much harder to get a loan, despite the great rates. BUyers need to plan ahead, and with things moving quickly they will miss out if there are not prepared to jump in with an offer for any homes they like.

Jeff

Nov 16, 2012 08:16 AM
George Souto
George Souto NMLS #65149 - Middletown, CT
Your Connecticut Mortgage Expert

Jeff those are very good suggestions, but most people don't know where to begin until they get some guidance from a Realtor or LO.

Nov 16, 2012 09:42 AM
Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

Gita - I hope so, too. And I hope they derive some benefit from reading this.

Jill - so true. But some buyers, and not just new ones, are not very planful and it makes things so much more difficult.

Jeff

Nov 16, 2012 09:43 AM
Charles Stallions Property Manager
Charles Stallions Real Estate Services - Pace, FL
Pensacola, Pace & Gulf Breeze Property Management

Very nice post I love for folks to contact me and being the control freak I will take care of the rest

Nov 16, 2012 12:22 PM
Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

Michael - they absolutely should be but so many are not. Thanks for stopping by.

Janis - budget is a key item I talk about with every buyer. They get it once you talk about what this means for them.

Jeff

Nov 16, 2012 12:41 PM
Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

Thanks Jared and Amanda - I certainly agree. It is harder and harder to be an effective buyer without a strategy AND a qualified REALTOR to help.

Ed - I couldn't agree more. There is so much information out there and lots of inconsistencies. And in this competitive market of multiple offers buyers and over-asking prices buyers need help formulating the right approach.

Paula - sometimes I think people just cannot be decisive anyhow, and getting bogged down in the research and on-line searching can slow the process - not good whebn things are moving as quickly as they are.

Thanks, Rhonda

Dave - well I see it alot, especially with those moving from out of the area.

Jeff

Nov 19, 2012 12:22 PM