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( a continuation)
Looking At A Home
____Does it meet your requirements, or can it somehow?
____Does it feel good when you walk through it?
____Ask your agent to point out any problems, and take notes.
____What problems does the neighborhood have?
____Use the walk-through inspection checklist, and take notes (see chapter 20).
____What does your intuition say?
____Ask about any concerns you feel.
____Write a description, or take a photo, to remember the house after looking at several.
____Measure for large furniture you may be bringing.
____Do you like the neighborhood and general area?
____Ask about schools, stores, or other things that matter to you.
____What have nearby homes sold for?
____What's the appraised value?
____Try to find the seller's motivation for selling.
____Have you seen enough homes to make a decision? 15 is average, consider 4 as a minimum.
____Ask more questions.
____
Negotiating With The Seller
____Review Section 3 of the book (negotiating).
____Get a good idea of the market value of the home.
____Have a goal in mind (price, terms and other things you want).
____Dress appropriately.
____Ask the seller why he is selling.
____Try to discover other motivations, needs or desires the seller has.
____Try to discover any deadlines (wants to move by school year, etc.)
____Ask how she arrived at that price.
____Ask if there have been other offers, and what happened.
____Mention other homes you may be looking at.
____Find common ground, and get agreement on many little things.
____Mention problems with the home if you can do so without insulting.
____Suggest possible offers and ask if he might accept "something like that."
____Show the seller your loan pre-approval letter.
____Ask for things you don't need, to give back in later negotiations.
____Find ways to give the seller what he needs.
____Look for win-win solutions to problems.
____Come to an agreement.
____Clarify the understanding.
____Put it in writing.
____
Negotiating Through An Agent
____Review negotiating chapter.
____Dress well and let the agent know you are ready to buy.
____Ask for the agents help putting a value on the home.
____Set goals for what you want (price, terms, anything else you want).
____Ask why the seller is selling.
____See if the agent knows any other motivations or desires of the seller.
____Ask about any other offers, and what happened with them.
____Show the agent your notes from your walk-through inspection, pointing out problems.
____Ask for help, and try to get the agent on your side.
____Suggest possible offers, to gauge the agent's reaction.
____Make an offer.
____Include a copy of your loan pre-approval letter.
____Include a list of repairs you'll be making if it is a low offer.
____Have the agent explain your offer to you, so you are sure he can present it properly.
____
Making The Offer
____Make your offer, but keep any thoughts of compromise or negotiating to yourself.
____Put the complete legal description of the property in the offer.
____Put the price, down payment and terms you want in the offer.
____Put the amount of earnest money in the offer.
____Write a check for the earnest money to the agency or escrow agent, not to the seller.
____Include a financing contingency unless you are paying cash.
____Include anything you think should stay with the home.
____Ask agent which inspections are normal there (termite, flood potential, etc).
____Include an inspection contingency, with a week or more to have an inspections done.
____Include a time limit for the seller to accept in the offer. One to three days is usually fine.
____Put the proposed closing date in the offer (usually an "on or before" date).
____Specify who pays which closing costs.
____Specify where the closing will be, if you have a preference.
____Specify who pays for title searches and/or insurance.
____Specify who will pay transfer or stamp taxes, unless this is specified in the law.
____Include any other contingencies you need (wife's approval, close by certain date, etc.).
____Have an attorney review the offer if you are not working with a good real estate agent.
____
Once The Offer Is Accepted
____Arrange inspections as quickly as you can (see chapter 19).
____Go with the inspector, and take your own notes.
____If the house is pre-1978, and you have children, have an inspection for lead-based paint.
____Review inspection reports carefully.
____Notify seller of satisfaction of inspection contingency, or of any problems.
____Use contingencies as an opportunity to renegotiate if there are any problems.
____Get loan commitment from lender (see next list).
____Notify seller of loan-contingency removal.
____Satisfy any other contingencies.
____Set firm closing date.
____Buy home owners insurance (see chapter 23).
____
Financing
____Bring the address and description of the property you wish to buy.
____Bring the sales contract.
____Ask how long the process will take.
____Ask about any ways to save money on the process (is an appraisal necessary?).
____Get a good faith estimate (lender must supply within three days) of loan costs.
____If loan is too expensive try another lender (or renegotiate).
____Ask questions (below).
____
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