Pre Qualify 1st

Get the facts:BEFORE YOU BUY PREQUALIFY......BEFORE YOU LOOK A PROPERTIES....MAKE SURE ALL YOUR $$$$ IS IN ORDER.When I have a tough decision, I am comforted by facts. The number one rule is do not overpay for a home. Try to determine what the home is worth based on comparable sales. Be very careful trying to project future value. The very best real estate professionals are shaky at best when it comes to predicting appreciation. I never buy on future value and I believe that illusion is what got many of us in trouble during the last bubble.

If the home needs repairs, be very realistic when you estimate costs. Too many people think they can paint and carpet a home for a couple thousand dollars. Hiring reputable professionals can be much more costly and many would-be do it yourselfers have been overwhelmed with the time, effort and disruptions required by such projects. And, on the flip side, don’t let a home inspection scare you away from a good deal. Every problem is fixable as long as the home price is low enough. Get a couple bids for any needed repairs even if you think you can do it yourself and make sure the home price reflects the appropriate discount for the needed work.

I recently had a friend who sought my advice. He was trying to buy a short sale. I warned him about how slow and murky the short sale process could be, but he loved the home and moved forward anyway. To my surprise, the bank accepted his price of $520,000 on a home that was probably worth $650,000. But the home inspector found a laundry list of items that needed repairs. The list looked scary but it was probably only about $20,000 worth of work. My friend walked away from the deal despite the fact that he would have had over a $100,000 in equity at closing.

●Don’t fall completely in love: Lacking experience, people rely on their emotions. Real estate agents know this. They try to decorate and stage a home so that people fall in love and forget the facts. When you get too determined to get a specific home, you get into bidding wars and overlook discrepancies that need more attention. Remember a house is just sticks and stones and there are plenty of them out there. You make it a home.

I really wish people were more realistic about houses. When I’m remodeling a home for resale and I’m faced with a decision to either improve the home’s insulation or make the home more beautiful, I’m almost always forced to beautify. Remember: It’s much easier to replace kitchen cabinets some time down the road than it is to reinsulate a home. But people aren’t concerned or willing to pay for what’s behind the walls. They should be.Visit www.PossessTheLands.com or call Joseph Goodman with C21 WMRA at 615-476-2953
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