bluecollardollar: on buying a home, part three

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When ever you do something major, such as a trip to a different destination, the saying goes that, "it is what you bring to it." No different when purchasing a home. The whole procedure is what you bring to it. Our 1st week had you taking the application in hand and preparing for week 2 when you marched into the lender of your choice and said,"I want a house."

But you can't buy it without a real estate agent. I know, ugh! They can be one step ahead of the used car salesman. These people make their living selling homes. And they get paid handsomely to do it. So choose the realtor carefully. Ask for references and check them. Touting their achievements in sales does nothing for you as a buyer. Top dogs are usually a pretty busy lot and it can be frustrating dealing with the best agent in the firm. This is a person that you need to feel comfortable with as you make your purchase. Remember, check references. he or she should be familiar with the area and licensed and should be willing to spend a few "getting to know you" moments first. Don't assume that full time agents are the best choice. Often the part-time folks have the same motives as a full time agent. They may have started real estate as a second career after they have retired and are not counting on your purchase to keep them financially afloat. They may have only you for a client. be sure this agent has access to a multiple listing service, or MLS. The MLS is the local listing of every home in the area that is for sale.

But what should you bring to the table?

If you have made a agreement to use an agent, don't go off trying to make deals with every open house that you see, or even talk to other agents. This is not good for you or your agent, who works on a commission only basis. These guys aren't stupid. If they sense that you will wander with your business, they will either let you go, or really put the pressure on. Heck, the way they see it, they have limited opportunities to sell, so they will sell hard. The other thing you need to bring to the table with you, is some sort of idea about what you want. Take the time to figure out what you want and what you will settle for. This helps along the process and keeps the homes you see down to the homes that suit you.

Your agent will provide you with a list of homes that are for sale within the range you can afford and the specifications that you have asked for also. He or she should provide you with a list of recent sales in those neighborhoods. And in the housing biz, the exterior is usually one of the best indicators of what can be found inside. Keep this in mind as you look at homes. Keep in mind also that the seller is aware of this also and don't be fooled by the planting of a few pansies, and a quick paint job. Ask you agent how long the homes you are looking at have been on the market. Houses don't sell for one reason only, price. It might be the cost of money (higher mortgage rates on loans tend to scare buyers from sellers) or it might be the cost of the home in relation to the neighborhood and what is offered nearby.

So you drive around and find the perfect homestead. If you are aware of what is reasonable in the neighborhood and the seller seems to be in the range, don't try to discount him with a low offer. This is stupid. And a waste of time. Now if you feel the price is too high and the amenities in the home don't warrant the price, then make some sort of counteroffer. Your agent can help with this. If the seller wants the price he's asking, move on to something else.

There are several services out there that do deal with finding you all the local info you need. If you are new to the area, using one of these services might be helpful. HomePrice, for about $25 will provide an extensive report, but I have never used them and cannot confirm their accuracy. But remember, staring down the barrel of a large commission check can make the realtor slightly less than ethical. A good cross reference might be wise.

This phase of the purchase is the hard part and the most tedious. But do your homework. And in doing so you will become a much more savvy buyer as well as a more educated one. But it the same technique used by appraisers, one who was probably hired by the seller to determine the best price for the market. But check anyhow.

Once that has been determined, and the offer has been made, it is time to take a good look around the place. Home inspectors are not usually licensed or certified to do what they do. But they should be a veteran of the field either in construction or repair. These inspectors are usually brought into the home by the realtor and this reference is their bread and butter. A good inspection can lead to a sale and a reference next time the agent has a home to sell. Beware of this. If something doesn't strike you quite right, get another opinion from another inspector of your choice. This may seem like a waste of time and money, but a little caution and a couple of hundred bucks can save you the possibility of thousands in future repairs.

Problems at this stage in the game, can allow you to back out of the deal or in some cases, renegotiate the offer down to cover the repairs needed. Next up, closing the deal...