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Sunday, February 01, 2004

9 tips for a smooth home buying experience  

Even smart people make common real estate buying mistakes. Here’s how to avoid them.

Kick some tires

1. Shop and Compare. Walk through several homes that are for sale in your price range and located in the area you want to live. By reviewing multiple properties on the market you will be better prepared to recognize overpriced homes and obtain the confidence to know a good value when you see it.

Get help from a local insider

2. “Pick the brain” of a smart Realtor. All Realtors are not created equal. If a Realtor does a lot a self-promotion, that does not mean they have the most experience and are respected by their peers. If you are a Buyer in a hot market, presenting an offer through a top Realtor gets your offer noticed and taken seriously. Top Realtors know the sales process, all about financing, how to remedy inspection issues and are expert negotiators. Great Realtors will get you what you want. Great Realtors know the pros and cons of homes and market area and may even know about properties not yet available but that will be soon. Ask Smarter Agent to recommend the best Realtor in your town.

A mortgage makes it happen

3. Get pre-qualified for a mortgage. Get over financial hurdles before you put in an offer. Find a good mortgage professional and go over what you can afford. A good lender will give you a pre-qualification letter even before you find the home you want. There is nothing worse than finding a home and losing it, or worse, losing your deposit because you can’t close the deal.

Budget for all your life needs

4. Don’t over mortgage yourself. There are so many mortgage products, you may be tempted or advised to borrow as much as you can. But be warned - there is nothing worse than getting in over your head. Make sure you can afford to live comfortably, put money aside for your children, and have cash on hand to pay for unexpected events. Don’t assume your home value will keep appreciating at the same rate it has over the past 3 years. Do assume your carrying costs will rise! Your annual local taxes and homeowners insurance rates will most likely go up each year. If you have an adjustable rate mortgage, your monthly mortgage payments will eventually go up. Housing markets eventually cool, but your payments never stop - be prepared!

The Agreement of Sale is key

5. Put all the details of your purchase in the Agreement of Sale. The Agreement of Sale spells out the timing, terms and dollar amount of the transaction. Don't take anything for granted, or rely on promises from the Seller or their agent. Have your Realtor put all conditions of the sale into writing, and get the seller's written approval for any modifications or amendments to the Agreement of Sale.

Inspections

6. Use a professional inspector. Make sure all electric, gas water and other utilities remain connected so you can inspect the home in working order. Get a qualified inspector to do a review of the house and prepare a written report for you. Go over the report with the inspector and your agent. Agreements of Sale usually allow a few days to bring any serious defects to the attention of the Seller - so a resolution can be attempted.

Final Home Check

7. Do a final assessment. After the Seller moves everything out of the house, take a walk through the house a day or two prior to settlement. Make sure the property is ready to be transferred in good shape as outlined in the Agreement of Sale. This will be your last chance to ensure everything is in working order prior to settlement.

Let your team show you their best stuff

8. Be open about your timing, financial condition, and lifestyle needs. A good Realtor is trained to find solutions to fit your needs – in ways you may have not yet considered. You may say you want an expensive house on a golf course. But by listening, your realtor may point out that your wife may feel more secure in a nice but low maintenance gated condo community. Plus you can play several of the regions courses with less carrying costs. Let your Realtor know the whole picture.

Be Flexible

9. Try to relax. From negotiations to closing and moving dates, focus on getting the deal done, not winning every battle. Delays and complications are part of most real estate deals, as both you and the Seller are completing a very time consuming, expensive and sometimes emotional transaction. Most issues are resolvable. If you’ve done your homework, have a great Realtor and mortgage team, you can be confident you will get a good deal.

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Our experience can help you avoid mistakes in the home buying process. We believe it’s important to pick the best professionals off the bat. When you start your search with Smarter Agent, you can call or email us with any questions from your first search straight through to your actual closing and beyond!

Get savvy, try www.smarteragent.com. Smarter Agent will save you a lot of time and help you get the best deal with the least hassles and at the best price.


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