Romance is the theme, as eloquently staged homeowners wait for a chance to wow buyers; which implies “heaven lives here”.
Home staging is a growing business due to the higher price that a staged home commands. It’s great for sellers, but sometimes it’s a lesson learned for buyers. After closings, buyers learn the romance is over when they open the doors to the echo of an empty house, even though they paid thousands of dollars more for the vanishing fantasy. ‘Well, at least the paint is fresh,’ they say to themselves to console themselves.
Some sellers pay thousands of dollars to have their homes professionally staged in an effort to arouse emotion. However, the savviest buyers leave their emotions at home and see the purchase for the business transaction that it really is.
Your home will most likely be the biggest purchase of your life, and it will be a decisive factor in your financial future. Resale value determines whether you can afford to move when you’re ready, or whether you’ll be stuck there because you bought an already-improved home and couldn’t build your equity by upgrading the home yourself. If you decide to refinance your mortgage in the future, your approval and interest rate will also be based on the equity in your home.
So what is the best way to buy a house without cornering yourself?
Put virtual blinders on the decor and focus on the structure and design of the house, the assessed value, the number of bedrooms and bathrooms, the size of the rooms, the property taxes; The location; your crime rate and school grades; what the city has to offer and, of course, the recent sales prices of comparable homes in the neighborhood.
If there are two almost identical houses, except that one is perfectly decorated and the other has old wallpaper and cobwebs; The painted house could sell for 25k to 30k more than the unpainted house. However, the unpainted home buyer could have a professional painter paint the entire home for as little as $250 per room. In just one week, this buyer earns between $23,000 and $28,000 in home equity, and his home is now worth the same as the other home.
Professional home pinball machines buy cheap repairs and cosmetic cover-ups that earn them between 50,000 and 150,000 on average. Some use cheap materials, yet most buyers don’t even realize it because they’re sold on the home’s shiny new look and smell; unaware of the fact that it was deemed a “landslide” only a few months earlier.
My advice to all homebuyers: “Business Before Pleasure!”
When you buy a novelty item, it can be a spontaneous and pleasurable gift. However, when you buy a home, you are actually negotiating your financial future.
What you find through your due diligence can also be used as a bargaining tool, as you negotiate for the best price using your business sense and not your heart.
When selecting a real estate agent, who will be your advocate in negotiations, make sure they have experience in sales and negotiations. It is not always advisable to use the seller’s agent as your own agent, for the same reasons that you would not bet on a game of poker if the other players could see your cards. If you tell your agent that you want to offer X quantity, but are prepared to offer more if it is turned down, that may be the same as telling the seller that you yourself, since the agent’s duty is to obtain the highest price for the item. seller. A buyer’s agent costs zero to the buyer as the seller pays the commission, so you may want to have your own agent who only has your best interests in mind.
After everything is agreed, and both parties shake hands, enjoy the expression of planning your home paradise. When the paint dries, you’ll experience the same satisfaction as the most impulsive buyer, except you’ll have the rewards of a lower mortgage payment and more money in the bank.
Buyers need to know what they want before they leave, so they are not easily swayed by the emotions triggered by sales agents or sales agents. Because real estate agents focus on building a good relationship with clients, some are afraid to educate buyers against their will, at the risk of jeopardizing the relationship or the sale.
Regarding your mortgage application; there’s just one question to ask that can save you thousands of dollars. My advice to homebuyers is to apply with more than one bank or mortgage company. After each request, ask the mortgage seller, “Can I have a printout of the Good Faith Estimate (GFE) so I can compare rates and terms with two other lenders?” Although the lender is required by law to provide you with the GFE within three days of applying, it is important that you let them know that you will be purchasing the rate.
It doesn’t matter how trustworthy or friendly your mortgage agent is; that one request will likely force the mortgage broker to stop talking and give you the lowest rates up front. Keep in mind; the higher the interest rate they sell to you generally means the higher the commission for the mortgage broker.
Drawing on my personal experience as a real estate professional and former branch manager for a mortgage company, I put together a simple checklist of basic things a buyer should consider. Feel free to contact me if you have any questions or would like more information.
Jane’s Home Assessment Checklist
Price
Annual Taxes
Flood zone rating (is flood insurance required?)
Household age
foundation condition
roof condition
Type of flooring under the carpet
Heating type and number of zones
Oil, gas or electric heating?
Central Air and Number of Zones
Electrical box type? Age? amps?
Date of last chimney maintenance
Date of last gutter maintenance
Date of last central air duct cleaning
Insulated Windows
Locks/Alarms
Underground oil tank on property (if so, extraction cost?)
kiln age
Water heater age
Water heater capacity
roof age
Complete bathroom
half baths
Bedrooms
finished foundation
finished attic
Sump or drain pump
Courtyard
landscaping
Gas or electric stove
Age of stove/cooking appliances
Gas or electric clothes dryer
Age of washer and dryer
Dishwasher era
Ample closet space
space for addition
Outside Condition
lot limits
fenced yard
Mod cons
Ample parking
City/Town Parking Rules
Rental Classification
School Ratings
school bus
minutes to work
Minutes to go shopping
nearest hospital
street safety
Much traffic
maintained neighborhood
city recreation
City or well water
sewer or septic
Close to Railways
Close to airports
Near high voltage cables
Near Industrial Zone
Estimates for heating, electricity and water bills
When is the house available for possession?
Don’t assume that all houses can be expanded. Each city has its own set of rules and regulations. If you are buying a home with plans to add an addition, check with the city’s zoning department before you buy. Also ask if there are any easements on the property.
If you’re buying a home in a flood zone, don’t always take the seller’s word for the neighborhood’s actual flood history. Ask your city zoning department, and ask your neighbors, too.
To find out when the next proposed tax assessment will be and to confirm that the current annual taxes are correct, call the city tax collector.
Sure, as a real estate agent, I could earn commissions faster if I didn’t bring these things to the attention of the buyer, but I prefer to have satisfied buyers and I expect them to send me referrals because of my sincerity.
“Here’s to the smartest homebuyer!”
