Make a list that includes your price range, all the items
you must have in your home, along with the items you don’t want. Take it
with you whenever you look at homes, so you don’t get sidetracked.
You will want to thoroughly research the real estate
values in your area. You need to know what people are asking for their
homes, and most importantly, what they are selling for. You want to be on
the lookout for and avoid areas that are experiencing depreciation in
value.
Although you certainly don’t have to use one, the
services of a good real estate agent can be quite valuable during this
stage. They can pull up all of this information in minutes by pushing a
few buttons on their computer.
Once you have a home that you are interested in, you need
to find out more information. There are several questions that you must
ask the seller before you start any negotiations. You need to know
as much as possible about the seller’s position and motivation.
1. Why are you selling?
The answer to this question will tell you a lot about the
seller. Everyone selling their home has a reason. The seller may have been
transferred, bought another home, be going through a divorce, or need the
cash to pay off debts. All of these things can be to your advantage when
negotiating!
2. Are there any defects or structural problems with
the house?
Watch the seller very carefully when you ask this
question. If they look away or get nervous, HIT THE ROAD! Most states now
have mandatory property disclosure laws that require the seller to fully
disclose any problems with the property.
3. How long has the home been on the market?
If the home has been on the market for many months, you
need to find out why. Is it simply because they are asking too
much for it, or are there much deeper problems? Also, the seller may be
more anxious to sell as the months go by - a big plus for you.
4. Are you offering any special financing or
assistance?
The seller may have an assumable loan, or be willing to
finance the purchase and carry the mortgage themselves. They also could
pay some of your loan costs or points to help you get a lower interest
rate.
5. Are there any repairs you were planning on doing?
This question is similar to number 2, but still needs to
be asked. The answers to this question can give you valuable insight
as to how the home has been maintained, and also give you some negotiating
leverage.
When you have answers to these questions, you will have a
good feel for the sellers situation and the house itself. You’ll be in a
position to decide if you want to move forward with the house or not.
