Sell your home first! Contingent sales don't always work. Let's pretend you go house hunting and find the home of your dreams. Now you have to make an offer to the seller. You want the seller to reduce the price of the house and wait until your home sells. The seller feels uncomfortable with this as they might pass up a ready and able buyer. The seller agrees to do the contingency but it has to be a full price offer. Now you have to pay more for the house, because of the contingency, and you have to sell your existing house quickly or lose your dream home. To sell fast you might take a lower offer than if you had more time. SELLING BEFORE BUYING COULD SAVE YOU A LOT OF MONEY.

If you think there is not a home on the market to suite you, go window-shopping. You can identify possible houses and locations without falling in love with a specific house. If you feel confident after that then put your house on the market. If you don't, then wait. Shop around!

2. GET "PRE-APPROVED"

You want to get the best home for your money, so make sure you are in a strong negotiating position. Price is one bargaining tool but not necessarily the most important one. We used to recommend that our buyers get "PRE-QUALIFIED" by a lender. This means that the buyer spends a few minutes on the phone with a lender who asks a few questions. Based on the answers, the lender pronounces the buyer "PRE-QUALIFIED" and issues a certificate that can be shown to a seller. SUCH CERTIFICATES ARE WORTHLESS. The information has not been verified.

The way to make a strong offer today is to get "PRE-APPROVED". This happens after all information has been checked and verified. You are actually approved for a loan and know how much you can spend.

Being "PRE-APPROVED" is a powerful negotiating tool!
 

3. FIND A GOOD AGENT - AND STICK WITH THEM!

When you enlist the services of an agent, that agent has a legal obligation to work hard for you. You become a client with all the rights, benefits and privileges created by this agency relationship. Your agent will try to get you the best deal possible on a property. The most important thing you can do is to have someone on your side who is committed to working for you.

4. GET THE HOUSE YOU WANT

Your agent should show you everything available that meets your requirements. Make sure you have seen enough properties to choose from, before making a decision. Be sure your agent gives you a complete list of properties available from the Multiple Listings.

5. BUY GOOD STRUCTURE

Before house hunting, make a list of things you want in your new home. Then make a list of things you don't want. Use this list to rate each property. The one with the biggest score wins! This helps avoid confusion and keeps things in perspective when comparing homes. Keep in mind the difference between "Appearance" and "Structure". The structure is things that cannot be changed such as the location, view, size of lot, noise, schools and floor plan. The appearance represents things you can easily change such as carpet, color and wallpaper. Buy the house with good structure! Consider each house on its underlying merits, not the seller's decorating skills.