3 STEPS TO BUYER SUCCESS
Buyer Beware – avoid the number one reason buyers lose their contracts.
You’ve been searching for months and your agent has been previewing and sending you new listings as they come on the market every day. Finally after many false alarms you find a home in your price range that has everything you need for you and your loved ones.
Your agent writes an offer for you and your combined negotiation skills work to get your offer accepted by the seller. Everyone cheers. It’s time to share your happiness with your relatives, right? Or, is it?
Buyer Beware – The Uncle Louie Syndrome
You call everyone you know to share your joy. On Saturday, you load the relatives in the car. Uncle Louie, he really knows construction, your mom, dad, and your friends. You are all excited about sharing the joy of your new life in a home you can afford.
Then it happens. Uncle Louie finds possible problems. There is possibly a little something here. There could be unseen problems under there. Uncle Louie begins finding fault with the construction. Well, that’s why you invited him isn’t it?
Now you ask Mom and Dad “What do you think?” Mom and Dad think back to how they bought their first home for a much lower price than this. The numbers today seem astronomical to them.
“Should we buy this home?” is a tremendous responsibility to ask of someone when they don’t know the market, they don’t know prices, and they have different wants and needs in a home.
Besides, Mom and Dad might want a small house to take care of easily. You may want a big house to raise the kids. Uncle Louie may want a home on 5 acres. (You may not want to mow lawns every weekend.)
The only safe thing that relatives can do is to tell you not to buy the home. They will tell you to wait. Wait another year of throwing your money away on rent. Wait another year to start building wealth. Wait another year until prices come down.
Yet, what if prices go up while you are waiting? Can you still afford that home? Will you need to settle for a lesser home? Even just a 1% rate increase has a huge effect on your mortgage payment.
3 Steps for Buyer Success
First, ask your agent for a market price analysis. Give it to your relatives when they come to view the home. Show them what other homes are listed for. This may shock your folks.
- Show Uncle Louie & Mom &b Dad the price of other homes that have more garage space, bedrooms, or baths. Explain to them that you may not want to spend another $100,000 for the extra yard, garage, or pool.
- Ask Uncle Louie how much he thinks it would cost to repair the items that he finds fault with. Tell him you will be hiring a good home inspector. This will take the pressure off of him.
- Finally, ask yourself if it’s not really the relatives comments that are holding you back. Ask yourself is this your own fear of commitment that’s holding you back from starting the life that you want?
Ask your Realtor® for the name of three licensed, experienced, inspectors. Good agents will usually have a list of good inspectors because they don’t want calls from unhappy customers after closing. They work on referrals from happy customers.
Also, ask for the name of a few respected mortgage representatives that actually deliver what they promise. Agents usually know who tacks on hidden fees because they go to lots of closings.
Next, remember that to create wealth you will need to take a little risk. The great thing about a home as an investment is that you get to enjoy living in it while paying rent to yourself creating forced savings.
A rental unit can have you evicted if something happens that you can not pay rent. As a homeowner you have rights. They can not throw you out in 30 days!
So go for it. Make the decision before you buy a home to get a good home inspector and to trust in your decision. That’s why you hire a home inspector! Let’s not put all the pressure on poor Uncle Louie, & Mom & Dad.
Top Producer Group Members Request This Ebook for Your Buyers.
– Coach Carol Mazur