This Old Adage Appears More Timely With Each Passing Week!
With the current state of real estate market conditions, I find that increasing numbers of buyer's and seller's, to a varying degree, seem "out of touch" as to the "lay of the land". As realtors, we shouldn't expect the typical buyer or seller to have intimate knowledge of "up to the minute" status, regarding a local real estate market. This is where "the rub" takes hold as we attempt to connect buyers and sellers with present day circumstances.
As a society, the pendulum, in recent times, has swung more towards incorporating fantasy versus hard core fact-finding when it comes to making decisions. As a result, we as realtors deal with a vast number of buyers and sellers who could be considered "out of the loop" when it comes to being adequately prepared. My comments here, are not intended to belittle buyers or sellers but more importantly, to shed some light on the facts which need to be considered while preparing oneself to acquire or sell a property.
The first order of business, should consist of getting all your "ducks in a row". For buyers, determine what your investment limit is. Once you have determined what you can spend on a real estate purchase, it will assist you with looking at property in your price range. Too many times, prospective buyers put the "cart in front of the horse" when searching for property. Most realtors can attest to the fact, that by and large, most buyers today, under-estimate the cost of what they are looking to purchase. The values of most properties have increased exponentially over the past two years. We have not seen this level of increased values in recent history!
After determining what you are willing to invest, your next order of business is to create a "must have" list! A must have list is not to be confused with a "wish list". Too many times, I deal with buyers who describe their ideal real estate purchase only to subsequently find out, what they have described, is way out of line with their budget amount. A must have list consists of necessities!
Locating an acceptable property will require that a buyer understand he or she will not get everything they want. If getting everything you want is mandatory, you should begin by contacting a building contractor, or in the case of vacant property, prepare yourself for additional expenditures in order to "create" what you desire.
I will share with you a common example of what happens when a buyer puts the "cart before the horse". Buyer can invest let's say, five-hundred thousand in an improved property. He contacts a realtor and shares his requirements. The realtor, familiar with the market, is aware that what the buyer wants to spend does not align itself with the list of "must haves" he has identified. In this case, what the buyer has described, would cost him in excess of seven-hundred thousand dollars. The buyer is faced with investing more than his budgeted amount or "down sizing" his "must haves" in order to make a purchase. This reality check comes as a shock to most potential buyers who have not done their homework.
Organizing one's "game plan" to secure the purchase of a property, requires completing a step by step process. Once you have determined your investment amount, secure the services of an experienced realtor familiar with the area you want to pursue. Describe in detail what your "must haves" are? Let him or her evaluate the market and then respond with any potential properties which are deemed worthy of consideration. Keep in mind, if the realtor locates a property which provides you with over seventy-five percent of your "must haves".......you had better make immediate plans to visit the property.
Last component for securing a real estate purchase. Don't "let the grass grow under your feet" when making a decision to put forth an offer to purchase. Too many people today, spend time vacillating over making an offer to purchase and end up hearing an all too familiar response from their realtor, "you're too late, they've already accepted another offer".
Words from the title of this post......should be kept first and foremost in the minds of today's buyer. 'Three to get ready and Four to go" should initiate preparedness followed by a "time-sensitive" offer to purchase when one has located a property which provides at least seventy-five percent of one's "must haves".
In closing, don't become a statistic, become a successful buyer! The comment I don't want to hear from my prospective buyer(s) but it happens several times a year............"I should have listened to you and made an offer on that property which met nearly all of our must haves"!
Prepare yourself and react when it's time to "step up to the plate"!