Wednesday, February 26, 2014

STEPS TO BUYING A HOME IN A TIGHT REAL ESTATE MARKET


If you’ve been looking for a new home in the Portland Metro area this past year, you know that it can be daunting. The lack of inventory has created a seller’s market spawning higher prices and bidding wars between buyers.  Want to increase your odds of finding that perfect home at a decent price? Follow these steps and you could be in your dream home before you know it.

 

1.     Get pre-approved for a loan and make sure you have your down payment in hand. That will allow you to make a strong offer the minute you find that home.  Having your finances in order will give you a big advantage over other buyers who aren’t prepared. It’s also a good idea to have enough cash to put at least 10% down. Anything less could lose out in a multiple offer situation as sellers are skeptical of buyers with little or no down payment.

 

2.     Find a real estate agent who is committed to you. Look for a local full-time full service agent who knows the area and the market. Find an agent that has time to devote to you and beware of large teams that give you an impersonal churn and burn type of service. Ask them how many listings and buyers they are currently working with. Will you work with the agent directly or will you work with their assistant or buyer’s agent. Finally, ask for references.

 

3.     Figure out what you want in a home. Write down your must haves, nice to have, don’t need. What are your four top deal makers and your four top deal breakers. Keep in mind that there is no such thing as a perfect home so figure out where you’re willing to compromise.

 

4.     Be prepared to review your wish list from time to time. If you still haven’t found a home in 30 days, you may have to review your home priorities and be prepared to adjust them. You need to be willing to make some cosmetic improvements on your own. You may even want to look in some new areas.

 

5.     Check out expired listings and For Sale by Owners. Your real estate agent should be able to look at expired listings that were taken off the market for whatever reason. Also, check your neighborhood for homes that are For Sale by Owner. Your real estate agent can usually talk the seller into letting you view their home and the sellers will often pay the Buyer’s Agent commission.

 

6.     When you find the home of your dreams, jump on it. Have your agent call the listing agent to explain that an offer is coming in right away so they don’t accept an offer in the time it takes you to write yours up. If you are an out-of-town buyer, have a friend or family member keep an eye out for you.

 

7.     Make a clean offer. Make as few contingencies as possible. If you have another home you need to sell, get it on the market now. If you find a home before your home sells, be prepared to get a bridge loan as most sellers will not accept a contingency on you selling your home. Get your home inspector ready so you can shorten the inspection time.

 

8.     Make it personal. Write a letter to the seller introducing yourself and your family. Let them know how much you love the home and why. This is a warm touch that could make a deal.
Photo from activerain.com

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