Saturday, July 31, 2010
Saturday, July 10, 2010
http://mysandiegorealtor.wordpress.com/2010/07/10/you-are-ready-to-buy-a-home-but-you-offers-keep-getting-rejectedd/
When you decided it was time to buy a home, if you are like most people, you felt some apprehension and a lot of excitement. So you started going to open houses, along the way you might have gotten a hold of a Real Estate agent to help you along the process, you got pre-approved for a loan, you kept looking at houses, you searched online, probably every other day if not daily,twice a day, maybe three times a day, until one day you finally take the big step…You write up an offer!
You sign it and wait…and wait….and then, the news comes….It was not accepted, someone else’s was chosen. WHAT???? How can that be you ask yourself? The one house that is getting an offer is rejecting mine in this down market? Turns out, that it got three offers on the first week and one was full price so they did not choose yours that was way lower. So…your search continues because you know you are going to find a house.
Weekend of open houses, more appointments during the week, more homes, one that has a funky layout, one that does not have doors in any bedroom, one more that has apparently been lived in by the Adams Family, now you start comparing them all to the one that got away, and you are not liking any of them. You decide to take a break, so you go away for the weekend. During your relaxing get away you think about it and you decide to commit yourself to BUYING a house. So you come back renewed and refreshed and determined to start writing up offers right and left hoping that one sticks, one has to work!!!
Armed with a pen and lower expectations you go out to…see some more houses, many of which you have already seen but are giving them a second chance. And since you mean business you start writing up more offers, however since you feel you are definitely compromising on what you are buying you don’t feel you have to pay close to market price so you start writing lower offers, if one works for the amount that you are offering, you will handle living in that funky layout for a while.
You look, you, sign, you send, you wait…rejected, rejected, rejected, accepted….WHAT???? the funky layout one got accepted??? you open escrow and you are not excited, you are nervous, you don’t even remember the home that well, you have seen so many that even when you saw this one 4 times you can’t remember it now. So you ask to see it one more time.
You walk in this home that is soon to be yours, you start looking at it with different eyes, you had not noticed that the laundry is directly next to the living room, that the ceiling in the master bedroom is 2 feet lower than in the rest of the house, that the kitchen only has two cabinets and no pantry.During the inspections some details come to light and that is just more than you can bear. This, is NOT your house, you cancel escrow.
You take another break, a longer one in this occasion, after a month or so, you realize, your time frame to move is coming up, so you have to get back in the game. This time you are dreading it. How did you get to this point? shouldn’t you be excited? you are buying your home!!! You talk yourself out of your own head drama, and start the process one more time, hoping that this time things will work out because now you have the added factor of working against the clock. Question is, what are you going to do different this time? How will you get your offers accepted? or is that really the key question?
Of course this is an exaggeration, or is it?
Even though it is not a real case in particular, it is very real. Selecting a home to buy and buying it is a major decision in life, I don’t care if it is your first one or fifth one, it is something that will take a big toll on the way you will be living in the near future. So it is understandable that there will be some stress involved, which is why it is very important to have a plan, before you even begin looking at homes. An important part of this plan, should be to have a team of experts guiding you, that are capable of reading not only the local market, but specific situations on a case by case, and prepare you to what to expect along the process
In your team you need:
1.-A full time real estate agent that knows the area you are looking at but is also willing and able to research other areas that might work for you and that is getting trained and up to date with the constant changes in Today’s real estate market and the different ways that each of the distinct types of listings work, for example, he should know the best way to negotiate with a bank, the best way to write up and submit an offer for a short sale, even how to handle a regular sale, imagine that!.
2.-A full time mortgage broker or lender, that is reputable and up to date with the latest changes in rules and regulations in the lending arena. There have been many changes in the last months and some of this changes are very important and can throw off an entire escrow because there are issues of timelines, the margin for error here have become minimal so it is very important that you not only select the person who brings you the best rate, but the one that will be able to handle the transaction and ultimately close your escrow.
3.- Other professionals: Which might include ,A Financial advisor, CPA, Real Estate Lawyer and even a contractor. Not everyone needs all of this professionals, however in most cases at one point you will need the advice of one or the other and it is best to have them in place from the start so that when you are ready to move on a home, you can access them and get the answers you need as quickly as possible. Which of these you will need depends on you, everyone does things differently.
Now that you have assembled your team, the next step is to get pre-approved. Notice that you have not started to look at homes yet, it is smarter to know with certainty how much home you can afford, before you start looking. You do not want to look at homes in the wrong range because if you qualify for less the step down will be hard to swallow, and can hurt your chances of liking the homes you will look at.
In the meantime with your agent, you can start discussing parameters, he will have a lot of questions for you. Make a list of what you like in a home, what you NEED in a home, what you dislike and put them in order of non-negotiables down to acceptable. Understand that there is no perfect home, not even if you built it yourself. So it will require some compromises on your part.
Now is the time to understand what you are looking for, and make a strategic plan accordingly. What are you looking for? Are you buying a deal or a home? I am not saying that you should pay asking price on the first house you see.That would be plain stupid, but understand that everyone dreams of buying a great home at an amazing price, however you have to be realistic or else you will get caught up in the trap that I presented before. Know that if what you are looking for is a deal, your search will require you to be more able to compromise on other things, you will need to have more time to find it, be realistic and knowledgable about the specific market where you are looking, and be clear. What does a deal look like in this area in this market? understand that in this case you will get rejected many times, however you are going about this as a business, you are looking for a deal.
If you are looking for a home, that again does not mean you have to overpay, but understand that if you want a home, with all the bells and whistles, with privacy and a big yard, it will be more sought after and you will have more competition, those things come at a premium, but remember that those things have value so that when you are ready to sell, you also get a premium for them. If you are willing to compromise on some of the most sought after elements you have a stronger position to negotiate. And yes, you will negotiate, and to negotiate you need to have clarity in the following:
1)What is the motivation behind the sale.
2)How badly do I want this house.
3)What are the properties weaknesses.
4)What can I offer to make myself a stronger candidate.
And as I had said previously you have to understand the market, its prices, etc, Be knowledgeable be smart and be quick. In other words, be prepared.
You can not negotiate with an un-motivated seller. Move on. If someone does not want to sell, or if they don’t need to sell, they will not negotiate in the price they have set as a minimum in their mind.
Now here is the big secret…ready? Listen to your team. I dont mean hear them out, I mean listen carefully and communicate back to them clearly, what your expectations are, give them constant feedback. Be ready to change your point of view as things progress but communicate any changes to your team so that they can adjust the search and the plan accordingly. Understand that they are on your side and they know what they are doing, they have done it many times before. They will be strong at reading the situation, telling you when something is already a deal at the listed price, when you are looking at properties they have a trained eye, listen to what they say, I can assure you in the story that I used to open this post, the agent must have pointed out to the buyer some of the problems with the funky layout home, but sometimes out of desperation we don’t listen, and later question why we were not told.
Also, there are different and creative things that your team can come up with, but you have to understand each one has implications, be open to them but ask questions.
Now, knowing all of this, the question is are you ready to buy a home? I mean, are you really READY to go out and BUY a home?
If you need any help or advise on buying a new home you can contact the author at info@SDExclusiveproperties.com or if you want to search the San Diego area market you can do so at www.SDExclusiveproperties.com
Filed under: Buying a home, Fist Time Homebuyers, Foreclosures, Getting Offers Accepted, San Diego Real Estate | Tagged: Del mar homes, carmel valley real estate, carmel valley short sales, del mar real estate, Rancho Santa Fe Real Estate, Rancho Santa Fe Bank Owned Homes for sale, car, Del Mar Short Sales, Del Mar Foreclosures, Rancho Santa Fe Homes, Rancho Santa Fe Foreclosures, Rancho Santa Fe Short Sales, Getting offers accepted, Secrets to writing up an offer, Carmel Valley Bank Owned Homes, Sergio and Rina Real estate proffessionals, SanDiegoExclusiveProperties.com
