Dos & Don'ts

 
Top 5 Dos

Make sure to find an agent that is just right for you. Interview with at least three real estate professionals to find the ideal Buyer's Agent for you. Don't be surprised when the best one quotes you the highest commission rate. As in all other situations you usually get what you pay for.

Get pre-approved for a mortgage. It makes no sense to look at homes that are out of your price range, so knowing what mortgage amount you will get approved for is essential. Make sure that you take also closing, moving and initial fix up costs into account.

Make a list of your needs and wants in your new home. Knowing what you absolutely need in your next home and what you would like, but can live without, is vital. Make a list - location, neighborhood, type, style, size, commute time, how many bedrooms, bathrooms, size of back yard, garage size, etc. This will help you to focus your search saving you a lot of time and disappointments.

Let your agent do the talking for you. While obtaining information on a property, negotiating the price and terms, making and countering offers, you should avoid talking directly to the seller or the seller's agent. You may inadvertently make mistakes that could cost you later on, or accidentally make statements shutting down negotiations altogether. Your buyer's agent on the other hand will work with you continuously to devise a suitable strategy and knows how to present it to the other party without loosing dialogue if things become difficult.

Make your offer stand out from others. Many times a desirable property priced aggressively for a quick sale will receive several offers all at once, and it is not always the buyer offering the most money that will become the new owner. Get advise and help from your buyer's agent to formulate an offer that stands out from others based on it's overall terms, such as the amount you're offering to pay down. There are many more factors making up an enticing offer, such as waiving mortgage contingencies or just the promise to close on a date convenient to the seller. Your buyer's agent will help you to write an offer that is attractive.
 

Top 5 Don'ts

Assuming you can do it all yourself. The Internet allows users to perform some of the tasks traditionally performed by real estate agents. Over 80% of real estate shoppers start their search on the Worldwide Web. While the Internet can provide a lot of helpful tips and research, it would be a mistake to assume that the Web is all you need to purchase a home.

Putting too much stock in home valuation web sites. Some realty sites now offer automatic home valuation tools. But they're not infallible. Don't assume to know what the value of a home should be based on what these sites tell you. There are many specifics of a home's value that automatic home valuation sites cannot incorporate, such as condition, amenities, upgrades and extras, just to name a few. Better take their values with a grain of salt and use this information merely as a range.

Showing your cards. While looking for information on the seller, it's important to divulge as little about yourself as possible. Any knowledge you provide could be used by the seller as leverage. Let your buyer's agent do the talking instead. He or she is your security buffer and protector and knows all the ins and outs of negotiating the best deal for you.

Not understanding the seller. During negotiations, it's essential to look at the deal from the opposite side of the table as well. You want to make best use of the seller's situation and motivation. What are the pressures on the seller of this house? Maybe the seller has landed a job in another city and already bought a home there. Any information you can obtain about the seller will strengthen your negotiating position.

Getting caught up in the game. Your goal is to purchase a home - not beat the seller. People often get so taken in by the negotiation game that they lose a house they really want and could afford because they didn't get the price they thought they could get. Pushing for yet another $5,000.00 off the asking price is not worth loosing the home of your dreams.