Edwardsville and Glen Carbon Real Estate Chat

Steps Most Buyers Will Take To Buy Their Home.......

Buying a home can be made less stressful if we follow a few simple steps.  It is a little like baking a cake, if you don't follow the recipe or steps the cake will not be a tasty treat.  While I am thinking about it, remember what they say about too many cooks in the kitchen!!

 

So to keep you on track in the home buying process here are some helpful steps for you.

1. Look for an agent to help you through the home buying maze.  Remember you are about to spend a whole lot of money so find a REALTOR® to help you.  Get to know the agent first; don't get in a rush....
2. Interview the REALTOR®....set an appointment with an agent to find out if they have the skills, services and professional attitude you're looking for.  Meet the REALTOR® at their office.  I know you really want to see the home that you are in front of....
3. Discover if the REALTOR® is working "FOR" you OR "WITH" you.  Are you a client or a customer?  Remember you want an agent that is going to be loyal to you and will be your advocate.
4. Clarify your wants and needs to your agent...let them know your objectives and timetable.
5. Have the agent help you establish your purchasing power...this may include getting pre-approved.  I would suggest that you find out how much home you can afford before looking at homes.
6. Once you start looking for a new home you will want to use the process of elimination.  After looking at two homes discard the lesser home and continue to follow the process while looking at properties.  Only keep the best home in front of you.
7. View each property objectively.
8. Once you have found the best home for you, write the offer to purchase.  With the large selection of homes available you may be able to find one quickly. Don't forget to bring your checkbook, you will need it to write the earnest money check.
9. Once the contract has been signed by you, your agent will sent it or take it to the listing agent.  Remember time is of the essence.
10. Handle all counter offers and negotiations with a win/win attitude....Keep a big picture mentality.
11. Avoid "Second Guessing Syndrome"...also known as "Buyers Remorse".  Almost EVERYONE gets it at some point in time. 
12. Finalize any loan details to get final approval.  If you haven't been pre-approved, you need to get the ball rolling NOW! 
13. Your agent will order title work from the company of your choice.
14. Any inspections or predications that need to be addressed should be done in a timely fashion.
15. Address snags and problems as part of life.  Keep focused on YOUR goals...getting into the home of your dreams.  Stuff can happen.
16. Do a "walk-thru" prior to closing to see all items were completed from your inspection or requested in your contract.
17. Show up early to closing with all necessary items needed.  Your agent will call you the day before closing with a list of needed items.  This is a happy day don't forget to bring a smile.  Congratulations on the purchase of your new home.

Whether you are buying a home in O Fallon Missouri or Fairbanks Alaska the process is very similar if not the same.  If you call an agent to meet you in front of one of their listings don't be surprised if they want you to come to the office first.  They want to get to know you and let you get to know them.  It is not good to start at #6 first and then try to play catch-up.  Bake the cake by the recipe and you will be amazed at how good it will turn out.

Helping you achieve your next level of the American Dream.  Ready?

If you are looking for a new home and a REALTOR® that knows the St. Charles County MO marketplace and one that has call O Fallon MO home for over 15 years give me a call.  Call Don Rogers at 314-954-6775 or email me at Don@DRogersHomes.com and we can start you home buying experience today.  By the way I am never too busy for your referral, so if you know of someone that is looking to buy or sell have them give me a call, too.

Search for homes on the market in our area by visiting my new website!  Click the link below and register to get full access to unlimited listings!

Principles of negotiation.  Books have been written about it.  Speakers travel the world lecturing about it.  Millions have been spent trying to uncover the secret.  For some, it will remain an abstract principle they will sadly never master.

A few weeks ago I had the chance to speak with a fellow for whom negotiations had not been a kind mistress.  This fellow, we'll call him Stanley, set out to buy a home for his family and ended up outmaneuvered by a more skilled negotiator into a contract he now wishes he had never signed.

Stanley and his family had been renting a small house in Fairbanks for the past couple of years.  It was comfortable and the price was right but with the changes in the housing market, he hoped to make the transition from renter to owner. A yard for his children to play in... a place in which to make memories of opening presents on Christmas mornings and birthday BBQ's on the deck.  Reasons which we can no doubt all relate to.

When Stanley found 'the house' he sat down with his lender and later the seller to hammer out the details of a purchase agreement.  The seller was ready to sell... he and his wife had plans of moving to be closer to their grandchildren and were ready to take the house off the market. 

"Let's get this done and get you moved in." Motivated seller. That's good, right?

Having watched HGTV's endless parade of real estate programming and read every real estate article he saw on MSN, he had a plan.  Take the purchase price, slice 10% off the top and negotiate up from there, if necessary.  Armed with his offer strategy, Stanley and the sellers put pen to paper and in short order had a mutually agreeable contract.

"10% off the asking price and the seller agreed to pay $5,500 toward our closing costs if we would waive any contingencies and close in three weeks." The anguish was palpable as he told me the story.  He ddn't need to continue... I knew the house and where this conversaton was going.

"Earnest money was placed in escrow with the title company.  An appraisal was ordered and we were planning furniture placement."  Imagine Stanley's surprise when the lender calls to say the appraisal came in... well... a little low.  Seems as though there's a near $37,000 difference between appraised value and the contract price.

A call to the seller turns the butterflies in Stanley's stomach to catapulting, trapeze-flying monkey's trying to claw their way through his belly button.  No re-negotiations.  "You agreed to remove the contingencies for the 10% price reduction and the $5,500 in closing costs I'm paying" replied the seller.  Hmmm. Now what?  This is where Stanley begins his search for answers and where he lands on this blog and calls us for answers... guidance... absolution... something. 

Unfortunately the only truly helpful advice I could offer is a referral to a reputable real estate attorney.  Where and how did the train heading to paradise go so far off the tracks? 

Representation - Stanley had none.  No buyer-agent representation.  No legal representation.  Nothing.  Mano-a-mano as it were.  Given the complexities of contract law, finance, discovery, disclosures, etc. representation is key.  A buyers-agent is the buyers advocate in a transaction.  What a concept, huh?  Their primary responsibility is to protect and promote the buyers interests.  Most of the time said representation comes at little to no cost to the buyer.

Research - If you don't know the local real estate market, you need to hire someone who does.  A sellers asking price is simply a number.  Unrepresented sellers are notorious for having an inflated opinion of their homes worth.  What are comparable homes selling for?  How long is it taking to sell those homes... and how does that compare to the subject property?  You need detailed market information... and someone to interpret that data.

Last but not least, forget the hype.  Not even HGTV, your Uncle Bob in Poughkeepsie or Donald 'Combover' Trump will be much help in crafting a negotiation strategy in Fairbanks, Alaska... or in any market they're not well versed in.  When the time comes to buy a home for your family, and now is a pretty good time, rely on a local expert. As luck would have it, I happen to know a couple.

 

(gold man image courtesy of Guido Jansen)

Dear Buyer: 

I am so glad we've decided to work together to find your next new home. It will be a pleasure to be your buyer's agent.

But before we get started, I want to make one thing perfectly clear. I will never, ever sell you a house.

Now, before you decide I'm crazy, let me explain how this works. You and I will have a meeting to talk about your housing needs and wants. A "need" is something like the number of bedrooms in your home.  A "want" is something like a fireplace or a three-car garage. 

What kind of neighborhood do you see yourself living in? And how long a commute to your job would you like? Do you want a ranch or a two story or maybe a maintenance-free villa? Do you have kids that you want to enroll in a particular school district? The sharper we can focus your desires at this stage, the easier the entire process will be for you.

I'm a great listener, so tell me everything.

To determine the price range in which you'd be comfortable, we'll have you meet with the lender of your choice for a loan pre-approval. Once we've established what what type of home you're after and how much you can spend, I'll search through the available properties that fit your needs and we'll make appointments to see the best matches in your range.

Eventually we'll walk into a place where you'll feel right at home. It meets all your needs and it even includes some of your wants. You'll know this is the one for you. 

At that point, I'll put the contract together to get you the best possible deal on the house you've selected.  I'll handle the back-and-forth negotiations with the seller's agent at your direction and once we have an accepted contract, I'll guide you through the details during inspections, inspection responses and then finally, we'll have a deal.

On the day of closing, you'll sign a zillion papers and take possession of your new home.  You'll take the keys knowing I've been with you every step of the way, watching out for your best interests and making sure you're happy during a stressful -- yet ultimately rewarding -- time in your life.

But you know what?  Going back to my original point...I didn't sell you this house.  You decided what you needed and wanted in a home. I helped you focus and then acquire the selection at the best possible price and terms and with the least amount of disruption to your busy life.

Let's get started. Aren't we going to make a great team?

__________________________________________________________________________________________________

About the Author:  Nancy Milton, GRI, is a Realtor with the Just Ducky Homes team at Coldwell Banker Brown Realtors in Edwardsville, Illinois. She and Kristina Pratt help their customers buy and sell homes and investment properties in St. Louis' Illinois suburbs of Madison and St. Clair counties with special emphasis on real estate in the communities of Edwardsville, Glen Carbon, Maryville, Collinsville and Troy. For more information, visit their web site at http://www.JustDuckyHomes.com or e-mail Nancy@JustDuckyHomes.com. Follow her on Twitter @JustDuckyHomes or "friend" us on Facebook.

Did you know that May is National Bike Month?

Every child should have the opportunity to hop on a bike, strap on a helmet and enjoy the feeling of freedom that comes from flying down the road under their own power. 

Sadly not all kids in our area have access to bikes they can call their own. That's why the Just Ducky Homes Team is participating in Coldwell Banker Brown Realtors' bike drive.

For the next several weeks, you contact me to make arrangements to donate your new or gently used bike. The bikes will be repaired as needed by our great friends and partners at The Cyclery in Edwardsville, Illinois. Once they're in tip-top shape, the bikes will be stored in a unit on loan from The Mobile Attic at our office on State Route 157 until donation day.

In May, the collected bicycles will be given to kids identified as being in need in the Edwardsville school district. Obviously the more donations we receive, the more kids can enjoy the summer on their own bikes. (You also can make monetary donations that will go toward the purchase of bicycles for the program. Checks can be made out to Coldwell Banker Brown Realtors.)

So call me at 618-791-8007 or send an e-mail to Nancy@JustDuckyHomes.com and we'll make arrangements to pick up your bikes.

Together we can make some great kids even happier this summer.