In part one I really focused on the Seller but today is about the buyer. The same situation applies – we are coming out of the largest recession in history and over the last year to year and a half there have been some amazing price decreases for buyers.
The main message here is that those days are coming to an end or have already ended if your reading this in 2020 and we no longer use money…. Oh don’t get me wrong the stories of people buying houses for an amazing deal will always exist they just won’t happen on the large scale that we saw in the throws of the recession. So for the buyers there are also things to be aware of as we enter the fall…
Price
Price is what you need to know – not what the house price is but what you can afford (as per a financial institutions opinion not your buddy down the street). Go get pre-approve, it doesn’t cost anything and it lets you know what price range you can afford. Due to the market Realtors® are filtering viewing based on buyer qualifications – ie, you don’t get to look at the million dollar house if you can’t prove you can afford it.
Keep your head on…
I know that sounds funny but the people selling houses are people too. It is important that you don’t walk into an offer $150,000 less than the listed price because from your view in the driveway the roof is shot. (And hopefully your working with a Realtor® that tells you this) Seriously we see this all the time. Look at homes in your price range and don’t focus on what the Gardening Channel is saying – they have no budgets. What you can do it working with the right Realtor® - make an offer – negotiate it and then make sure due diligence is followed. Inspections, proper financing and more – your Realtor® has a complete system to make sure your protected.
Condition
Oh yes we see this all the time too. The renovation channels are great at showing the before and after but they do not realistically present the truth about the costs and timelines involved. Really…. they don’t.
I have personally bought, refinished and sold 13 houses that I lived in and worked on over an 11-year period. I can tell you that the TV is full of bad information. Think twice about a renovation of “fixeruper” if you have never done it before or if you’re not really prepared financially and mentally to take on these projects. Getting a low price on a house with a leaky roof because you think you can fix it is not always the right choice over a slightly smaller house with a solid roof. Without the proper inspections and contractor quotes you might find out later that there is a lot more damaged that just having a leaky roof. Be careful – there is a lot to be said for getting into a house you don’t have to work on. My last home was 2 years old and for 2 years we did not lift a hammer or a pint brush – it was awesome.
Summary
Get pre-approved ASAP so your not disappointed later in what you can and can’t buy.
Keep you eye out for the deals but realistically they don’t come along very often and it is usually a really sad reason why it is a deal.
Use a professional negotiator/Realtor® to get the offer done and protect yourself from the largest purchase in most peoples lives.
Renovations – think twice –they usually take twice as long and double the money you planned if you don’t plan and execute it properly…trust me I know.
And as usualy remember - I could be totally wrong!
Take care and have a great week!
Erika Haley
