- Once a buyer has a home in mind, how does he/she learn as much as possible about the home, the neighborhood, the owners, etc.?
There is so much information on the internet so it is the agent’s job to help the buyer sift through all of that information to provide them what they are looking for.
- What’s the strategy for making an offer on a house that a seller cannot refuse?
Obviously, price is #1, but other items that really make a difference are things like a closing date that the seller prefers. A lot of times the shorter the escrow period the better. Also, shortening the time periods for things like inspections, appraisals, and loan approvals. Another strategy is focusing on smaller items like giving the seller and their agent choice on who to use for things like an escrow provider, title insurance, and home warranty. The cherry on the cake is always a letter from the buyer talking about who they are and why they love the house along with a photo. Nowadays a video works great too.
- What’s your best advice for getting through the inspection process? What are some tips for negotiating repairs after the inspection?
Inspections can be overwhelming. Breaking the inspection items into large groups helps. For example, make a list of all the plumbing items, all the electrical items, and any other large category there might be. This helps a buyer see that only a few specific people are needed to fix what was called out. The same goes for the seller. When requesting repairs I suggest really focusing what is most important to the buyers. Don’t ask for “everything”, ask for what is more serious or important and then convey to the seller this is most likely going to be an issue for any buyer.
- During negotiations, how can people position themselves as a strong and serious buyer (i.e., having more cash on hand for earnest money, getting underwritten upfront, closing faster)?
The strongest buyer usually is the one with the largest down payment and the best and most qualified loan approval. If they can find a lender that will underwrite before they have actually found a home, then that is a huge advantage in the offering process. Another tactic is a short close date and letting the seller have the option to rent back after the close for a short period of time. This allows the seller to have their cash in hand to go buy the house they want and not necessarily have to move twice. This can come in handy in some situations. I will tell you who your agent is can also make a difference. If a buyer has a good agent with a good reputation that can also be a factor in a competitive offer situation.
- What are some tips for winning a bidding war on a house you really want?
My advice is always when it comes down to the final bid offer the most they are willing to offer given perimeters of the house and your financial ability. If a buyer finds out the house sold for a $1 more and they wouldn’t be upset then that is the number they should offer as the “best and final”. (I say this keeping in mind I am not a fan of overpaying for things but this is their home and not all people look at it as a straight investment).
- What should first-time buyers know about the home appraisal process?
Buyers need to know that this is an independent, third-party evaluating the house for the bank giving them the loan. This is to ensure the bank that what they paid is market value and not over.
- What should buyers know about selecting the right mortgage for their needs?
Buyers need to know that the right mortgage is the one that fits their budget and their life. In this extremely low-interest-rate environment, I don’t know why a buyer wouldn’t just do a 30 year fixed rate. We probably won’t see rates this low again for a long time once they start to go back up.
- During the closing, what should buyers keep in mind?
Buyers should start planning. Have they talked to a mover? Do they have plans to do any remodeling or painting? Get bids ahead of time on all things they want to do once they own the home. This will save them time and allow them to plan ahead.
- Anything else you would like to add?
Buying a home is very stressful but a good agent should be there to give you comfort and confidence and guide them through that process. It won’t take all the stress away, but it will help
