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1) Take a few moments to discuss
what you're looking for with your spouse or partner before you
start setting up appointments to view properties. Make a list
of "Must have" features, then discuss other "Would
like, but can live without" features. After you've looked
at a dozen or so properties, re-evaluate your criteria. Often
priorities shift with time.
2) Have a realistic idea of how much you can afford before you
start looking (most lenders will pre-qualify you for free). Not
only will this save time, but will avoid needless disappointment.
3) Don't bring an agent with you to look at for-sale-by-owner
properties, or bring them into the picture when it's time to
draw up a contract, unless you are willing to pay their commission
through either a higher sales price, or out of your own pocket.
Otherwise, you may risk losing the house. (note: your lawyer
can help you if you aren't sure of the process.)
4) If you're also looking at properties with an agent don't
sign a contract that locks you into looking with only him or
her, or guarantees them a commission even if you find the house
yourself! Specify that a commission be paid only if you buy
a property shown to you by that agent. This enables you to look
with other agents, and also at for-sale-by-owner properties,
at your own convenience.
5) If you find the house you want to buy before you've sold
your home, and the seller is reluctant to sign a contract with
you with the contingency that you sell your home first, you may
draw up a contract that allows the seller to continue marketing
and advertising the property yet gives you the "right of
first refusal" should he receive another offer. This way
you will be notified immediately if the seller has another offer,
giving you an opportunity to re-offer if necessary. Another
option is to put a non-refundable deposit on the property. This
shows the sellers that you are serious about buying the property.
As a reference, deposit amounts are generally 1-3% of the sales
price.
6) If you sell your house before finding a home you want to
buy, be sure your sales contract is contingent upon you, the
seller, finding suitable housing!! We have heard stories of
people frantic to find a home under pressure, and even having
to rent after the closing, because they sold first. Remember,
the seller is legally bound to sell once the contract is signed.
7) When presenting an offer, be courteous and respectful of
the sellers. In general, avoid criticizing the property with
statements like "we don't care for the new carpeting, and
therefore will have to replace it". This will not justify
a lower offer & may possibly insult the sellers, decreasing
your chances of their accepting your offer.
8) If you are unsure about the value of the property you would
like to purchase, you can make your offer contingent upon the
property appraising for the selling price or higher.
9) Request that you be permitted to walk-through the house (shortly
before closing) after the furniture is removed to make sure that
some of the home's faults weren't covered with furniture, rugs,
or wall coverings.
10) Request that the seller complete a property disclosure form,
stating the condition of all aspects of the property, before
you make an offer. If you are making an offer on a property
listed with an agent, make sure you see the seller's disclosure
information first. Agency- listed properties carry no guarantees,
and it is the seller who is bound to be truthful in reporting
the property's condition.
11) Give the seller a reasonable amount of time to consider your
offer. (24 hrs is common.) Also, don't make the deadline time
at midnight unless you usually are awake at that time!
12) If you don't know much about building construction, don't
worry. Make your offer contingent upon the property passing
a professional housing inspection. This is also an excellent
way to become more familiar with the upkeep needs of your future
home.
13) Put everything in writing. Your sales contract should spell
out whether the washer and dryer stay, etc.
Copyright Picket
Fence Preview, Inc. 1993 |
