- Don't use your "Aunt Mabel".
- Although your friend or family member will surely have your best interest at heart, without an intimate understanding of current, local market trends, you're either going to struggle...or pay too much. Neither of which is ideal. Use an established and respected local area expert. Why? They get the job done; repeatedly. They know what's out there and they know what's coming. They also have established working relationships with the other players in the mix: Title, escrow, lenders, other agents, etc.
- Remember, until it's yours...it's only sticks & bricks.
- Until you get the keys, do your very best to remember that the deal you're working on is literally just a stack of raw materials and labor. Don't go order your new sofa or that 80" HDTV. Until it's actually yours, believing otherwise often leads to headaches and heartaches.
- Not doing recommended inspections.
- There are typically only two circumstances when I'll subscribe to the idea of 'no home or pest inspections'. A) New Construction. B) When the buyers have the ability and willingness to recover from unexpected problems with the property; mold, plumbing, electrical, foundation, roof, etc. These inspections are crucial in making an informed decision as to whether you proceed with a purchase, walk away...or renegotiate terms of your contract. "But what if we pay for these inspections and find out that we don't want to buy the home?" THAT, my friends, is exactly why you do the inspections. Better a $275 risk...than a $475,000 risk.
- NEVER change your financial circumstances while in escrow.
- Don't pay more, borrow more, sell something, buy something, or make an investment...and please...don't guy buy a new car! "But I thought paying off my credit card debt would be helpful!" Don't think; ask! It might be helpful. It might have been better, though, to have used those funds to buy down your interest rates. So, if you're going to do anything other than buy groceries (exaggerated...but just a little bit) while you're in escrow, tell your lender immediately. Better than that, ASK your lender. I promise that you don't want to be stuck in a contract that you cannot close. It's no bueno!
- Don't leave yourself Mortgage Broke
- Mortgage Broke is when you can comfortably afford your mortgage payment...but nothing else. No baseball games, no Disneyland trip, no back to school clothes, and no new tires for the car. Most Americans have an almost unquenchable material appetite. In a funny way, we want to WANT as much as we want to HAVE. So, just because you're approved to a loan amount of $600,000 doesn't mean that you HAVE TO buy a $600,000 home. It's your home...not your life. Make sure that you're comfortable enough to absorb a few financial hits along the road and smile through them. Enjoy that occasional ski trip. Take a weekend away, now and then. Leave just enough breathing room to keep you 'in love' with your home, not burdened by it.
- Negotiating with home builders on your own.
- Most home buyers would never consider taking their real estate agent into a new home community. Over the past 4 years, nearly 25% of my business has been the result of successful negotiations with home builders on behalf of clients. Think about it for a minute. Imagine if you and your spouse could walk into a new car showroom with YOUR OWN car salesman to help you negotiate. Seriously! This guys know what goes on behind the scenes. Next, imagine that his or her service was free AND did not raise the price of the car you were going to buy! It's the same way with new home construction. You CAN bring help. As your agent, yes, I do get paid, but those funds typically come from the builder's advertising budget, not the sales price of your house. I learned this early, watching a Realtor who I know and love negotiated terms on my first new house. It was fantastic. Click here to read more.
- Know your lender.
- Some random "WannaBuyAHouse.Com" loan website probably isn't the most ideal relationship to foster when your financial future is at stake. Find a local lender that you can speak with in person, on the phone, via text, or however you prefer. This person is far more likely to invest time and some serious effort into someone they've personally met. Are the employees on the other end of some website interface going to be busting their butts for someone they've never even met? You can't be sure. So drop into your bank or credit union. Even better than that would be to work directly with a lender that already has a strong working relationship with your real estate agent.
- Don't expect that fun new iPhone app to turn you into the local area expert.
- This has become such a problem within our industry that I already wrote an in depth post about it. Zillow, RedFin, Trulia, etc. are great if you're looking for a reasonable rule-of-thumb, but as they admit themselves...their data is questionable at best. Count on your local area expert. He or she knows not just what the price of your new home ought to be...but WHY it ought to be sold at that price. That expertise; that "why" is crucial when it comes to negotiating a fair price and fair terms.
- Don't use the wrong "coach."
- Do you know why there were two coaches in the Superbowl this year...and every single other year since the beginning of time? Because there were two teams; two sides. OK, I know what you're thinking..."Duh!" But every single weekend, unsuspecting home buyers walk into an open house and tell the listing agent, 'We love it! Let's write it up!" That's no different than the Patriots marching into the Seahawk's stadium and asking their opponents coach to help them gain the best possible outcome. It happens all the time. So what should you do if you do fall in love with that open house? First, ask if the agent holding the home open is working for the sellers. Sometimes they're not! If the agent at the open house is working for the sellers, say this, "We absolutely love it! We're going to go have our agent run comps and write up a competitive offer." Then leave. Find an impartial real estate agent that will advocate or coach your side exclusively. The listing agent has a fiduciary responsibility to the seller. Let someone else advocate for solely you!
- Unless your purchase is going to be a rental, make this your home, not just an 'investment'.
- It's easier said than done, but consider your purchase for what it is; your home. It may go up in value. It may go down in value. But it will always be your home; at least until you sell it, or will it away! Creating a bit of emotional separation between the idea of investment and home will leave you feeling more peaceful throughout the ups and downs of the real estate market.
Thanks in advance for remembering my name when the topic of Real Estate comes up in conversation. If you're local , just remember Andy@LoisLauer.Com I'm always here to help.
My business thrives by word of mouth. If you appreciate the information provided on my blog, please share this post on your favorite social media sites, and with anyone you feel could use my service.
Until next time.
Andy Blasquez
Cell ~ 909.539.3292BRE#01826135
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E-mail me on Andy.Blasquez@gmail.com
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