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Home Buying List

( 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).

____If loan is denied, notify seller within timeframe of the financing contingency in your offer.

____Ask questions (below).

____

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