Do you have garden gnome(s) in your yard in Arizona? Many people do. After all, he guards your home all day long. He must know something about real estate. You love Garden Gnomes you say. OK many of us do. Do you go to them for REAL ESTATE advice? Who are you going to ask...your GARDEN GNOME or Me?
You may have questions about real estate and seek out some of the wisest and oldest truths, such as:
1. Where do I find the best home to buy?
2. Should I start with a "lowball offer"?
3. Do I really need to spend money on an inspection?
4. Should I wait to buy a home until the market is better than now?
You have these questions and not sure whom to ask? You could ask me as your personal REALTOR®... "OR" you could ask the usually friendly, reliable but sometimes erratic and misunderstood "Garden Gnomes".
You prefer to start with the garden gnomes this time, you say? OK, OK. Your REALTOR® is probably busy, and the Garden Gnomes are sitting around outside, in where else, your garden. Wisdom awaits (maybe)...
Ask the garden gnomes for real estate advice? You could and give your REALTOR® the day off
Walking into the garden, the apparently friendly but lethargic gnomes meditate and answer your questions about the best real estate wisdom. They do appear friendly sitting around observing, but you notice although they are pleasant, they do not interact much. Not enough empathy perhaps? When you think about it, they are kind of stiff and rigid.
The Garden Gnomes provides answers with their real estate advice as follows:
1. Buy worst home in the best neighborhood
2. Always make a "Lowball" Offer first
3. Save Cash for a home inspection and use your buddy
4. Don't buy home now, wait for market to be better
Some of the garden gnomes' answers are apparently proponents of "Old Real Estate Advice", but is that advice FABLE or TRUTH? Some of the garden gnome's old real estate advice SEEMS wise but things are not always what they seem. What seems like TRUTH may actually be a FABLE.
Ask Your REALTOR® , ME!
OK, maybe you should ask your REALTOR® which is me instead of the Garden Gnomes. I am pleased to help you and represent YOUR best interests after all. So here is MY ADVICE:
You may want to take some of the Garden Gnomes old home buying advice "lightly". Some of these home buying "tips" may fall into the category of an "old wives' tale" or may be true with a "grain of salt". What am I saying? Be careful of some traditional home buying advice.
Buying a home is a major life decision, and for many people, it is the largest purchase they will ever make. Therefore, as a home buyer, it is important to carefully consider all advice that you receive in light of current market conditions and your own needs, circumstances, and desires. Inevitably, you may receive some advice that is simply not right for your situation.
If you hear these common and often offered real estate tips offered by the Garden Gnomes in particular, it may be best to take them lightly:
1. Buy the “worst” house in a great neighborhood. This advice is based on the old real estate adage of “location, location, location.” The logic is that if a house needs fixing up but is in a desirable area, its value will increase with time and some improvements. This may be true in some situations, but unless you are looking for an investment property, it is probably ill-advised to buy a home that you don’t like or that doesn’t suit your needs. In addition, if your budget does not allow for renovations immediately, you may feel stuck living in a “fixer upper.” As you begin your home search, have a clear idea of your deal breakers and avoid properties that do not meet your minimum requirements—even if you like the neighborhoods in which they are located.
Sometimes, buying the worst home in a great neighborhood means one is doing home repairs "forever"!
2. Start with a lowball offer. All buyers seek to negotiate the lowest possible price on a property, and some use the strategy of making a very low offer at first in order to gauge how much the sellers are willing to drop their price. While this may be effective when the sellers are desperate or the current real estate market is a “buyers’ market,” lowball offers often come across as insulting. This could set a hostile tone for the negotiations or cause the sellers to refuse to even extend a counteroffer. If you like a house, offering a fair price in light of its condition, the current market, and your financial situation may result in a better outcome.
A lowball offer could anger the seller causing them to not counter and Buyer saying "Forgive Me" to buy their dream home that may slip away to another Buyer that offers the true "market price".
3. You don’t need a home inspection. Some buyers hear that forgoing the home inspection is an acceptable way to save money—but it could end up costing them far more in the long run. By waiving the home inspection, you essentially sacrifice the right to request that the seller make additional repairs besides what they agreed to when the initial contract was signed.
Inspection by Public Domain Pictures, Pixabay
Often, the costliest problems are those that are not visible to the naked eye, such as flaws in a home’s foundation. Therefore, hiring a licensed inspector is an essential way to ensure that you will not soon be facing major repairs—or at least give you a chance to negotiate with the seller to either make repairs or lower the price.
4. Don’t buy a home now, WAIT when the real estate market is better—prices will come down soon. The economy is cyclical and average home prices fluctuate over time. However, waiting for a downturn when you are otherwise ready to buy a home could be a mistake. Your window of opportunity may close. For example, your employment situation could change during a recession, thus weakening your purchasing power, or you may currently be wasting money paying rent. If you are financially and emotionally ready to purchase a home, it may be best to act swiftly, regardless of the current market.
Waiting (Photo Pexels, Pixabay) for home prices to come down may be bad decision
If one waits and waits for the market price to change, that dream home may not be available later. Timing the market for the absolute lowest price is difficult. The bottom line? Real Estate prices will go UP, UP, UP (yes, with some short term dips from time to time). If you plan to live in the home, the price will go up (it has for the past 125 years) so you might as well buy now.
Sources of some material: realtor.com & cheatsheet.com
Meet Jeff Masich REALTOR® Phoenix Metro Area including Scottsdale
Meet Jeff Masich, REALTOR® and call/text 480-242-6500 or at https://ArizonaHomesLand.com to get started
To learn more about the Phoenix metro area or Scottsdale and to see homes for sale at Arizona Homes For Sale or Scottsdale Homes For Sale.
Here is a FREE MLS Search and your very own MLS Search Portal for homes for sale in Arizona. Jeff Masich would be pleased to help you find Arizona Homes For Sale and the right home at the right price!
Press FREE MLS Search to search for homes for sale in Arizona
Comments(3)