BE READY FOR THE SPRING MARKET.
The predictions are starting to come in and the 2016 Market doesn't seem to be looking any less crazy and frustrating for the Buying public. Here are a few things to keep in mind when purchasing a home this coming Spring.
A Few Things to Consider:
Get pre approved for a Mortgage specifically in the price range you are considering. But more specifically make sure your lender has all your information and a completed application ready when in the purchasing process. Make sure all your financial information has been given to your mortgage agent so there are no surprises when you have a deal in hand. Make sure you get your pre-approval well in advance of the start of the search. Get it in writing for extra peace of mind.
Set your Budget according to your borrowing capabilities and stick to it. Don't go shopping for Million Dollar homes when your pre-approval is for $700,000. You're just wasting your time and your sales reps as well.
Get your Deposit funds ready to move. One very important issue that can kill a deal. The deposit is the token amount of the purchase you put up as goodwill to secure the purchase. In reality there is not set amount a deposit has to be. In fact you technically don't even need one. However customarily you do forward a deposit of cash that is held in trust by the sellers brokerage until closing. The Deposit must be forwarded to the party holding it in Trust within 24 hours of an accepted deal, this is extremely important. At closing the deposit funds are disbursed as part of the whole transaction. IF a deal falls through due to a poor inspection or inability to finance for example the deposit will be returned to the buyer as stipulated in an offer. Your Real Estate Sales Representative will include clauses in an offer to ensure that your interests are protected. Always discuss these with your rep before offer process.
Research your target area: Make sure you are familiar with Schools, shopping, restaurants, religious sites, transit, highways and anything else that is important to you when making the decision to move. This gives you and your Agent a better target when starting your search.
Get connected with a great Real Estate Professional. I mean really connected. Sign a Buyers Representation Agreement. This way both you and your Professional Real Estate Salesperson know that you are in it to win it. From a Sales Reps standpoint if you have a client who is committed you will go to great lengths to ensure they are successful and happy. Conversely if you have a non committal "maybe" customer, the spring market is very hectic so an agent has to make a decision to prioritize. Tire kickers will get left in the dust. A customer who posts the age old "I'm not signing anything, I'll deal with the agent that brings me the best deal" Will never get the best of a Sales Person. It mystifies me that in a business transaction of such proportions someone wouldn't want a formal arrangement from a sales representative. Commitment really isn't a bad thing in Real Estate.
Line up your Pro's:
- Home inspector
- Insurance Pro
Anyone else who will come in handy.
Don't scramble at the last minute, get them familiar with you and your needs before the offer. They will thank you and you will experience far superior service. They are also able to move quickly if needed when they are properly prepared by you. Your Realty professional can help find great trades people and professionals, it's important to vet them yourself so you have a comfortable working relationship with them.
Remember the Goal is to get you through a new home purchase calmly, professionally, successfully and most of all with YOUR best interests in mind.