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Buying a home will probably rank as one of the biggest personal investments one can make. Being organized and in control will contribute significantly to getting the best home deal possible with the least amount of stress. It’s important to anticipate the steps required to successfully achieve your housing goal and to build a plan of action that gets you there.
Real Estate will always be one of the best investments individuals can make. Regardless the economic cycle our economy is in, Real Estate will always remain a solid and wise investment. It is a proven fact that prices paid for properties today will be worth more within five to ten years. Of course the increased value will vary from locale to locale however, be assured that you will experience an increase in value. During this time period, property values may decline slightly due to a myriad of factors, however, that decline will be reversed and the value will increase.
Before you can build a plan of action, take the time to lay the groundwork for your decision-making process. Getting all your ‘Ducks Lined Up’, before making an offer, puts you in the strongest position, regardless if we are in a Buyers or Sellers market.
USE A REALTOR
It is important that you choose an experienced agent who is there for you. Your agent should be actively finding you potential homes, keeping you informed of the entire process, negotiating furiously on your behalf, and answering all of your questions with competence and speed.
A QUICK CHECKLIST OF WHAT YOU WILL NEED:
- Pre-approval letter from your Mortgage Lender
- Firm price range
- Know the maximum you are willing to spend for the right property
- Understand all of the requirements from the lender for final approval
- Preview of the Purchase Contract to be used
DETERMINING YOUR OFFER PRICE
When you prepare an offer to purchase a home, you already know the seller’s asking price. The question is; what price are you going to offer and how do you arrive at that figure? Is this your ‘opening’ offer or your ‘best’ offer? Discuss the strategy with your Realtor; however you don’t have to reveal what your ‘best & final’ price may be.
Guidance and information from your Realtor are key. Your realtor will be able to provide information about what other similar homes sold for in the past 12 months. These are called ‘Comparable Sales’ and come from three primary sources.
- The Local Board of Realtors MLS historical database (only available to member Realtors).
- Public tax records.
- Pending Sales the local MLS has recorded as scheduled to close in the near future.
All of these, combined together, give you real-time, factual, information to base your offer on. Let your Realtor explain all of the relevant information about these sales and pending sales. Review the trend of prices, the number of days it took to sell the property, a review of the description of the property that includes its condition, the amenities and special features. Ask your Coral Shores Realtor to take you on a tour of the community so you can see the most recently sold or pending sales.
EARNEST MONEY DEPOSIT
After you have come up with an offer price, the next step is to determine how large a deposit you want to make with your offer. You want the "earnest money deposit" to be large enough to show the seller you are serious, but not so large you are placing significant funds at risk.
THE CLOSING DATE
It is absolutely essential that you include a closing date as part of your offer. This way, both you and the seller can make plans for moving, and the seller can make plans for buying his or her next home. Though most transactions actually do close on the right date, do not be so inflexible that a delay creates insurmountable problems.
For example, if you are renting and need to give the landlord notice that you are moving out, you may want to allow a little flexibility. Otherwise, if your purchase closes a few days late you could find yourself staying in a motel with your belongings packed in a moving van somewhere while you pay storage costs.
De-personalize the House - The reason you want to "de-personalize" your home is because you want buyers to view it as their potential home.
Cleaning House - Take a step back and pretend you are a buyer. Let a friend help point out areas of clutter. Let your agent help you, too.
Plumbing and Fixtures - All your sink fixtures should look shiny and new. If this cannot be accomplished by cleaning, buy new ones where needed. Make sure all the hot and cold water knobs are easy to turn and that the faucets do not leak. If they do, replace the washers. Check to make sure you have good water pressure and that there are no stains on any of the porcelain. If you have a difficult stain to remove, one trick is to hire a cleaning crew to go through and clean your home on a one-time basis. They seem to be wonderful at making stains go away.
Ceilings, Walls and Painting - Check all the ceilings for water stains. Sometimes old leaks leave stains, even after you have repaired the leak. Of course, if you do have a leak, you will have to get it repaired, whether it is a plumbing problem or the roof leaks. You should do the same for walls, looking for not only stains, but also areas where dirt has accumulated and you just may not have noticed. Plus, you may have an outdated color scheme. Painting can be your best investment when selling your home. It is not a very expensive operation and often you can do it yourself. Do not choose colors based on your own preferences, but based on what would appeal to the widest possible number of buyers. You should almost always choose an off-white color because white helps your rooms appear bright and spacious.
Carpet and Flooring - Unless your carpet appears old and worn, or it is definitely an outdated style or color, you probably should do nothing more than hire a good carpet cleaner. If you do choose to replace it, do so with something inexpensive in a fairly neutral color. Repair or replace broken floor tiles, but do not spend a lot of money on anything.
Costs of Repairs - Do not do anything expensive, such as remodeling. If possible, use savings to pay for any repairs and improvements. Do not go charging up credit cards or obtaining new loans. Remember that part of selling a house is also preparing to buy your next home. You do not want to do anything that will affect your credit scores or hurt your ability to qualify for your next mortgage.
Landscaping - Your lawn should be evenly cut, freshly edged, well watered, and free of brown spots. If there are problems with your lawn, you should probably take care of them before working on the inside of your home. This is because certain areas may need re-sodding, and you want to give it a chance to grow so that re-sodded areas are not immediately apparent. Plus, you might want to give fertilizer enough time to be effective. Always rake up loose leaves and grass cuttings.
House Exterior - The big decision is whether to paint or not to paint. When you look at your house from across the street, does it look tired and faded? If so, a paint job may be in order. For some reason, different shades of yellow seem to elicit the best response in homebuyers, whether it is in the trim or the basic color of the house. As for the roof, if you know your house has an old leaky roof, replace it. If you do not replace a leaky roof, you are going to have to disclose it and the buyer will want a new roof, anyway. Otherwise, wait and see what the home inspector says.
Lighting, Fragrances, Pet Control and More – When you know someone is coming by to tour your home, turn on all the indoor and outdoor lights, even during the day. At night, a lit house gives a "homey" impression when viewed from the street. During the daytime, turning on the lights prevents harsh shadows from sunlight and it brightens up any dim areas. Your house looks more homey and cheerful with the lights on. Do not use scented sprays to prepare for visitors. It is too obvious and many people find the smells of those sprays offensive, not to mention that some may be allergic. If you want to have a pleasant aroma in your house, have a potpourri pot or something natural. Or turn on a stove burner for a moment and put a drop of vanilla extract on it. It will smell like you have been cooking. If you have pets, make sure your listing agent puts a notice with your listing in the multiple listing service. The last thing you want is to have your pet running out the front door and getting lost. If you know someone is coming, it would be best to try to take the pets with you while the homebuyers tour your home. If you cannot do that, it is best to keep dogs in a penned area in the back yard. Try to keep indoor cats in a specific room when you expect visitors, and put a sign on the door. Most of the time, an indoor cat will hide when buyers come to view your property, but they may panic and try to escape.
Keeping the House Tidy and Neat - Not everyone makes his or her bed every day, but when selling a home it is recommended that you develop the habit. Pick up papers, do not leave empty glasses in the family room, keep everything freshly dusted and vacuumed. Try your best to have it look like a model home.
We have several mortgage companies that we can recommend based on the type of loan you are looking to get or type of home you are looking to buy. Please contact us and give us more information on what you are looking to do so that we can guide you in the right direction.
We have some great home warranty companies that we work with. We can help you find a great company that will meet your needs. Please contact us today so that we can find the best fit for you.
