Category Archives: Education

Jack and Jill Negotiate to Buy a Home…The Home Buyer Checklist You’ve Been Looking for (9 of 15)

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FOOTBALL VICTORY

Jack had just pulled away from their condominium.  When Jill pulled out the next check point.  Jack frowned.  “What?  It’s a thirty minute drive and it’s only a couple of lines long.”  Jill said with a lilt in her voice.  “Ok, said Jack, but don’t quiz me when your done.”  So Jill began to read………… 

#8 Negotiate with Knowledge

This is probably the check point that most readers will skip.  I am sorry to report that there is not magic bullet or crystal ball.  The best asset you have for negotiations is your REALTOR.  Take the time to review the contract template your REATLOR wants to use BEFORE you start looking for a home.  Understand all the negotiation points and timelines.  Knowledge is your friend and the more you understand the negotiation points in the contract the better you can respond in the heat of the battle.  That’s why the two super bowl team practice before the Super Bowl…it’s so they understand what their opponent is going to do in a situation so they can be at the RIGHET PLACE AT THE RIGHT TIME AND THEN……..TOUCHDOWN!!!!

Let’s back up a little and talk about when your negotiation starts.  It doesn’t star when you like the home, or after you have put in an offer.  YOUR negotiation starts when you first star to read the Multiple Listing Service information with your REALTOR.  There are subtle clues in the general listing and sometimes more in the Agent remarks(available to agents only) that could help you formulate your game plan from the very beginning.  This doesn’t seem like much of a negotiation, the seller is basically telling us what type of financing they will accept and that they are keeping the fan in the bedroom and so on.  Understanding that harlines the seller has drawn will help you to decide if you can live with those terms or if there are going to be a hardliner throughout the process.  Did you have trouble making an appointment to see the property?  Did they move the showing time, did they shorten it?  Did they give a reason for making changes to the appointmen?  Were they reasonable reasons?  That’s subjective, I know, but if a child is sick or they have family in town…that’s ok.  It’s nice to know the reason why the property is being sold, but it is not your right to know.  Sellers guard their reason fro selling very heavily and it is within their right to do so.  The worse thing you could do is visit a home in search of the upper hand instead of seeing if this could work as your next home.  Negotiations are meant to be in the best interest of both parties.

What the seller sees as value, you may not.  The buyers set what is valuable by buying homes they like.  Those sellers that don’t move with the market, ie change their selling price or fix problems with the home, will be left behind.  Days on market is often seen as an indicator of urgency to sell.  Your REALTOR can help you with these when he gathers the competitive market analysis for that subdivision.  It may be that homes in that neighborhood sell slower of it may be that the buyer is holding the line.  Let your REALTOR go over the competitive market analysis with you in person and in detail.  This is what they do for a living and it is not as cut and dried as you may think,  You really nee a detailed Competitive Market Analysis to understand what direction you should take your negotiation.

“I guess I was really hoping their was a magic bullet to the whole negotiating thing.”  Jack said with a sigh.  “Knowledge is Power, my dear.” Jill said with a wink.  And they eagerly awaited the next check point entitled:

“Jack and Jill Consider a Home Protection Plan…The Home Buyer Checklist You’ve Been Looking for (10 of 15)”

We hope you’re enjoying our series and that it helps you on your way to……………………………

Live Life to the Fullest,

S.C.

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Jack and Jill…Where Do YOU Want to Live?: The Home Buyer Checklist You’ve Been Looking for (8 of 15)

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Tropical beach, traditional long tail boats, famous Maya Bay, ThailandJill was dripping wet when she entered their tiny condominium.  A shredded umbrella in one hand and a bag of Chinese take out in the other.  As she closed the door her heel gave way and down she went.  Fortunately it was a tiny condominium, and Jack was able to catch her before she did herself any hard.  The Chinese take out didn’t fair as well.  It got squished, but was still edible.  Jill began to cry as she tried to talk “Jack”, sniff, “I”, sob, “just”, sniffle, “want to be able to park outside our home.”  Jill cried on, not in pain, but from the wet and the sadness of the broken heel on her shoe and the further realization that heir parking situation would not get better until they had their own home on the hill.  Jack handed her a towel and a warm cup of tea and said, “You relax, I got the food warming in the oven, dry off, drink your tea and I’ll read.”

#7 Where Do YOU Want to Live?

I don’t know, where do you want to live?  I don’t know, where do you, think we should live?  It’s a discussion that people have been having for years.  When your looking for a home, unless you have some type of restriction that you have placed on where you want to live, the world is your oyster.  Surely you don’t want a two hour commute, one way, up hill, in the snow.  Or maybe you have to have that type of commute because you want to live by a lake or have your children go to a certain school.  Location IS the biggest question in real estate and that’s why everyone will tell you it’s the first, second and third most important thing,  So location is important, but it’s not just the State or the city, or the subdivision, or the school district, it can also be the street.  Do you want your home on a corner, a cul-de-sac, on acreage, next to the park, or far away from the park?  When you are searching you should look at the satellite view of the home that peaks your interest.  The  satellite might show vacant land, a creek, a river, railroad tracks, salvage yard or strip center that you didn’t see when you drove to the property.  Keep in mind that land that is vacant now may not be vacant forever.  Farmer John may decide to sell that vacant land and you don’t have any control over who he might sell to.  Can you get to work from your new home?  Is their more than one route?  Is their a toll road within a couple of miles that would make your commute a little bit easier?

By the time Jack finished reading Jill had cheered up, dired off and the food was ready to eat.  Jack spoke,”Jill I am making it part of our home search to find us a home that has covered access from the car to the kitchen.  I never want you to have to worry about getting soaked or slipping or…”Jill cut him off saying, “Thank you sweetie.”  And with that she kissed him on the scar of the side of his head and handed him a plate of Chinese food.  They ate in silence as the storm rolled through eagerly awaiting the next check point entitled:

“Jack and Jill Negotiate to Buy a Home..The Home Buyer Checklist You’ve Been Looking for (9 of 15)”

We hope that you’re enjoying our series and that it helps you on your way to……………………..

Live Life to the Fullest,

S.C.

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Jack and Jill Learn What COSTS Are Involved: The Home Buyer Checklist You’ve Been Looking for (4 of15)

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Costs InvolvedJack and Jill are entrenched in the home buying process and everyday they are noticing new “For Sale” signs in yards, mortgage companies television ads, and other Real Estate related happenings.  They are in the zone, it wasn’t that their were more homes on the market or that the mortgage companies had bought more television time….Jack and Jill were now paying attention.  So they were excited to read about:

#3 Learn What Costs are Involved in Buying a Home

It’s important to understand the closing costs for buying a home, early in the home buying process.  You can get that information from your lender or your REALTOR.  They both will use different tools to illustrate your closing costs and should be pretty close to what ends up on your closing statement(the final documents your sign before you get your keys).

Your lender can provide you with an INITIAL FEES WORKSHEET when you work with them on your prequalification letter.  After your offer on a home has been accepted by the seller it’s time for your REALTOR to send a copy of that contract to your lender.  Once the lender has the copy of your contract you can formally apply for a mortgage.  The government (Real Estate Settlement Procedures Act) requires that the lender provide you with a GOOD FAITH ESTIMATE within three days.  The GOOD FAITH ESTIMATE is just what it says….it is their estimate on what it would cost for you to buy a specific home using their lending services.  By understanding the Title Company fees, attorney fees, Homeowner Association Fees and Home Owners Insurance it puts your home buying in a real light of what is paid now to own a home AND what will be paid on a recurring basis (Home Owners Association, Home Insurance, etc)

Your REALTOR can also provide you with an Estimated Cost Worksheet that can give you a good starting point.  It will give you basically the same information as the lenders INITIAL FEES WORKSHEET and is just an unofficial estimate.  Home Owner Association yearly fees and yearly taxes are posted on most Multiple Listing Services Information Pages, so you may have access to a lot more information than you originally thought.  Not all REALTORS provide an ESTIMATED COST WORKSHEET, and that’s ok, your lender is the money person, your REALTOR is the negotiation and home information finding out person and so on.

 “Well Jill did we learn anything from this point on our checklist?”  asked a puzzled Jack.  “Jack is your head bothering you again?  Come on now you need to focus, ” scolded Jill.  “Of course we learned something.  We learned that there are fees involved in buying a home and that we should learn about them by talking with our lender and our REALTOR.”  said Jill calmly.  “Yea, I got that too, I guess it will make more sense once we have an INITIAL FEES WORKSHEET in our hands,”  smiled Jack.  And with that being said they eagerly awaited the next check point entitled:

“Jack and Jill Search & Search Some More: The Home Buyer Checklist You’ve Been Looking for (5 of 15)”

We hope you’re enjoying our series and that it helps you on your way to……………………………

Live Life to the Fullest,

S.C.

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