Realtors are not clairvoyant. So, the more information or self discovery you can do before you contact a realtor, the better. Here are a few tips on helping the buyer narrow down their property search.
- Get pre-approved before you speak with a realtor. Remember, just making the payments isn't enough. You will have to prove the funds for a downpayment for the loan and closing costs. You may need to have an inspection and other out-of-pocket expenses to cover, so make sure you consider that in your purchasing equation. Also, the property may need some work, allocate funds for the immediate improvements necessary upon closing.
- Drive around neighborhoods and identify those street you general like and dislike. A city may have 50 neighborhoods that would be potential options for you, so check out properties on the Internet and drive by them. Once you check out the area, you will can have an intelligent discussion with your realtor about where you want to live.
- Discuss the timing of your closing. Do you need to be in a place in one month or one year? The Realtor can direct you to the proper options and the best deals.
- Get a realistic grasp of what your dollar can buy. Websites like Realtor.com, Trulia.com and other home search sites can help you accurately determine what the amount of money you have available will purchase. Once a customer came into the office with a printout of a property that had a typo in the listing that stating the 6/6 house in a very exclusive section of town was priced at $100K. There was at least on "0" missing from the end of that number. The woman insisted on seeing it, but after a call to the agent, she realized it was mismarked. Realtors know the true value of a house and let you know if the property is truly a deal or not.
- Create a list of "must haves", "would like to haves" and "don't wants" for the agent to use in the search process. Make sure you don't get too specific. Too tight of search criteria can eliminate viable properties. For example, if you insist on a 3-stall garage and there is a property that has a 2-stall and carport that may be suit your needs, you would eliminate that possibility by the narrowing the search criteria too far.
Good luck on finding a home and remember to do your research. Even with the help of a Realtor, the final decision is up to you.
Friday, September 24, 2010
Friday, September 17, 2010
A Few Easy Ways to Take the Headache out of Moving
Moving from one house to another is always a challenge, but it doesn’t have to be a nightmare. Here are some simple tips on how to get it done with minimal stress and strain.
• Look at all the alternatives: hiring a moving company, for example, versus renting a truck and doing it yourself. Whichever alternative makes most sense for you, get bids from more than one vendor.
• A few days before the moving company is scheduled to arrive or you’re supposed to pick up your rental truck, call to confirm that everything is on track to happen when it’s supposed to:
• Prepare your change of address cards in advance and send them out as soon as it’s appropriate to do so. The post office, utilities, companies and people you do business with, city hall, friends, relatives – all should be notified of your move.
• Get an early start on packing by concentrating on seldom-used items first. Each box should have its contents and the room those contents belong in written on it clearly.
• Take a hard look at things you seldom or never use and throw away as many of them as you can. The more you throw away, the less you’ll have to move. Every item you throw away is one less item to clutter up you new home.
• Use your extra towels and linens to protect breakables. When your supply of these things is exhausted, crumpled newspaper makes an excellent substitute. Write “Fragile” on all appropriate boxes.
• Put your valuables (such as jewelry) and important documents (birth certificates, car titles, etc.) aside in some safe place where they won’t be misplaced.
• When the house is empty, go back for a thorough final inspection. Check closets, crawl spaces, basement, attic, out-of-the-way nooks and crannies of all kinds. Have a second person make the same inspection separately.
• Clean your new home thoroughly before moving in. It’s infinitely easier that way.
• Decide in advance where you want the heavy furniture. Changing your mind after the movers have departed is no fun – especially for your back!
• Locate all fuses, circuit breakers, and water/gas and electrical valves. Record the meter readings and check the smoke detectors.
• List the phone numbers of the local police and fire stations, doctors, nearby hospitals, etc. Put a copy of your list near each phone.
Above all, plan, plan, plan and plan some more. Make a schedule you can live with, and then stick to it. Preparation and forethought will help you to keep everything under control and finish the move with your sanity and your nervous system intact.
• Look at all the alternatives: hiring a moving company, for example, versus renting a truck and doing it yourself. Whichever alternative makes most sense for you, get bids from more than one vendor.
• A few days before the moving company is scheduled to arrive or you’re supposed to pick up your rental truck, call to confirm that everything is on track to happen when it’s supposed to:
• Prepare your change of address cards in advance and send them out as soon as it’s appropriate to do so. The post office, utilities, companies and people you do business with, city hall, friends, relatives – all should be notified of your move.
• Get an early start on packing by concentrating on seldom-used items first. Each box should have its contents and the room those contents belong in written on it clearly.
• Take a hard look at things you seldom or never use and throw away as many of them as you can. The more you throw away, the less you’ll have to move. Every item you throw away is one less item to clutter up you new home.
• Use your extra towels and linens to protect breakables. When your supply of these things is exhausted, crumpled newspaper makes an excellent substitute. Write “Fragile” on all appropriate boxes.
• Put your valuables (such as jewelry) and important documents (birth certificates, car titles, etc.) aside in some safe place where they won’t be misplaced.
• When the house is empty, go back for a thorough final inspection. Check closets, crawl spaces, basement, attic, out-of-the-way nooks and crannies of all kinds. Have a second person make the same inspection separately.
• Clean your new home thoroughly before moving in. It’s infinitely easier that way.
• Decide in advance where you want the heavy furniture. Changing your mind after the movers have departed is no fun – especially for your back!
• Locate all fuses, circuit breakers, and water/gas and electrical valves. Record the meter readings and check the smoke detectors.
• List the phone numbers of the local police and fire stations, doctors, nearby hospitals, etc. Put a copy of your list near each phone.
Above all, plan, plan, plan and plan some more. Make a schedule you can live with, and then stick to it. Preparation and forethought will help you to keep everything under control and finish the move with your sanity and your nervous system intact.
Tuesday, September 7, 2010
Negotiating Strategies for Today's Market in Florida
Determining what you should bid on a property has turned into a much more involved process today than it was 6 months ago. Here are some tips:
Regular Sale. A regular sale is where an individual or entity owns the property and is selling it outright. This situation allows for the most downward pricing negotiation currently. If a 5-10% concession in the price is achieved the buyer is doing great. If the buyer tries to "low-ball" an offer, the seller may not counter or the counter may be minimal in nature. Don't expect the seller to come back with the midpoint of the gap between the buyer's offer and seller's counter. Just because you feel a property isn't worth the price, doesn't mean the seller agrees with that.
Short Sale. The bank that is providing the concession to the seller expects to get market value from the property, not 5 cents on the dollar. Bid market value. If not the buyer may be 4 months into the deal and have a rejected or countered offer from the bank. A smart buyer bids with 5% lower of the market value. That way the bank may see the offer as close enough.
Foreclosure. Many foreclosures (bank-owned properties) are put on the market a below-market value, but they are actually selling for market value or higher. Be careful not to get caught in the bidding frenzy of a property. Most bank owners require a 10 days waiting period after the property is on the market to get multiple "highest and best" offers. For lower priced foreclosures, a buyer may want to put a higher than asking price bid in on the property. (Investors have now upped the amount of money they are spending to get prime properties, so investors and owner occupied buyers are competing for the same properties.
As the market has bottomed, prices are not as negotiable as in a descending marketplace. Look for other concession than price to pretty the deal.
Regular Sale. A regular sale is where an individual or entity owns the property and is selling it outright. This situation allows for the most downward pricing negotiation currently. If a 5-10% concession in the price is achieved the buyer is doing great. If the buyer tries to "low-ball" an offer, the seller may not counter or the counter may be minimal in nature. Don't expect the seller to come back with the midpoint of the gap between the buyer's offer and seller's counter. Just because you feel a property isn't worth the price, doesn't mean the seller agrees with that.
Short Sale. The bank that is providing the concession to the seller expects to get market value from the property, not 5 cents on the dollar. Bid market value. If not the buyer may be 4 months into the deal and have a rejected or countered offer from the bank. A smart buyer bids with 5% lower of the market value. That way the bank may see the offer as close enough.
Foreclosure. Many foreclosures (bank-owned properties) are put on the market a below-market value, but they are actually selling for market value or higher. Be careful not to get caught in the bidding frenzy of a property. Most bank owners require a 10 days waiting period after the property is on the market to get multiple "highest and best" offers. For lower priced foreclosures, a buyer may want to put a higher than asking price bid in on the property. (Investors have now upped the amount of money they are spending to get prime properties, so investors and owner occupied buyers are competing for the same properties.
As the market has bottomed, prices are not as negotiable as in a descending marketplace. Look for other concession than price to pretty the deal.
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