Way too many home improvement shows and flipper success stories give an impression that could not be more false in the process of buying a home. In fact buying a home tends to be a bit more difficult now than 5 years ago and the negotiation and timelines are a disaster. So what do we need to put to bed and where do we go from here? Lets play! The mistakes of buying a house
Buy Because You Like It
The days of an average home buyer being able to pick up a house for $.50 on the dollar with a regular mortgage and no money down are gone. In 2007 before TARP money was distributed and appraisals were a breeze, you could steal a home. But today Banks are in no real hurry to rid themselves of a property and all lenders care about is the actual sales price. Today’s retail market is just that. Cash is King and if you don’t have good old fashion cash in the pocket, your not really competing for a steal. Just a fact.
Grandmas Money And A Flip
Flipping is an art that can’t be mimicked by just anyone. Because you know how to pick out matching light fixtures and terrazzo tile, it still does not mean you can flip a house. Most professional flippers are fine tuned machines that have all pricing and labor costs down to a science and understand that the day you have to call a specialized contractor for an unplanned upgrade, your in the red. Flipping a house requires an expert knowledge of material costs, labor and being able to inspect a property with confidence. So don’t try to buy the house next door because the markets up and the grass is a little long. Take that money and make double mortgage payments. Low risk and much much smarter.
Who Needs What
Is it a sellers or buyers market? We technically it is neither. Most Realtors won’t say it but the only person that has the upper hand is the one that doesn’t need to make a move. If you have to sell your house then obviously you are more negotiable on the sale and willing to make more concessions. If you have to find a house and time is running out, you begin to shorten that “Must Have” list and begin making decisions based on a move date. The fact that we assume all sellers are in pinch is absurd and we need to educate the buyers that a well priced home in great condition is just that and may be worth the unpopular Full Price offer.
Work Those Listing Agents
You should not sell your home yourself. Why Not? As a matter of fact, I have had some of the best deals dealing with FSBO and it’s for one reason. No one can sell the home you have enjoyed more than you. The only suggestion would be to pay a fee based agent a sum to handle the paperwork and be the go between during negotiations. Asking a Realtor to do limited listing services is not a crime and should be used more frequently. Get that house on-line and start cleaning.
Yes, buying a home is an awesome experience and if you go at it level headed you will have a blast and gain some value. But you can’t believe what you see on tv or in the paper. It is an open market and a fair market, so fooling yourself that you are the only one with options is putting yourself at a weakness. Play nice now.