If you want to get the most home for your money, you need to make sure you are in the best negotiating position possible. Keep in mind that price is only one factor and not always the most important. Often things such as the strength of the buyer or length of the escrow are just are important to the seller, if not more so. One of the most important things you can do is get pre-approved. By being pre-approved before you actually shop shows that you are worthy of buying a home in a certain price range, which gives you a lot of negotiating power.
As most everyone knows, it is common for unexpected problems to surface. These might include credit report inaccuracies, past due alimony or child support payments, or recorded judgments. Therefore, the way to make the strongest offer is by getting pre-approved, which helps you identify these things early on and quickly get them resolved. Next, always sell your home before buying another one. Although you could put a contingency contract on the second home hoping that the first home will sell quickly, this is not the strongest type of contract and in many cases can be overwritten by a firm offer from another buyer.
Usually people can find a second home to coordinate with the sell of the first home with no problem. However, if there is a time issue, a temporary housing solution is always available, whether it be renting an apartment for a month or two or staying with family or friends. Another tactic is adding in a clause stating “subject to seller finding suitable housing.” By adding this clause to the listing, you are provided ample time to find a new home. If not, then you do not have to sell your present home.
If you have concerns that there are not any houses on the market meeting your criteria, start doing some window-shopping. This will allow you to start identifying houses and locations without zeroing in on one specific house. In addition, this will raise your level of confidence that there will always be something to meet your needs. Before you start your house hunting adventure, make a list of everything you would like. Be realistic and list only the “must have” items and not the “want” items. If you find some of the things from the want list, then that is a wonderful bonus.
This will help to keep you focused on appropriate homes and avoid any type of confusion. Be sure to keep style and substance separate. Style represents things that can be changed with little effort. These might include paint, carpet, wallpaper, and window treatments. Substance is the things that cannot be changed such as location, lot size, school districts, view, etc. Therefore, look for substance since style can be changed.
Never be pushed into buying any house. Your real estate agent should show you all the homes meeting your criteria, and you should not make any decision until you have seen each one. Years ago, if a buyer was shown a house that met most of their needs, the agent would strongly recommend they put an offer on the house in order not to lose it. Today, the urgency level is not the same and people are taking more time to ensure they are making the right investment. If you have children, do thorough research to ensure the school offers what you feel is important. If you have a child needing some type of special class for physical disability or speech, you will want to talk to the teachers and make sure they can meet your child’s needs.
Although calling on homes listed in the paper or some other type of advertisement can have positive results, many times there are things not mentioned in the ad. For example, the house may sit next to an airport or busy highway and be extremely noisy. Perhaps there are power lines or some type of sub-station directly across the street. This is why it is critical that you read all the fine print in ads and ask a ton of questions. Otherwise, you could be chasing homes and spending a lot of your time for nothing.