In an effort to bring more voices to our blog and our customers, we will be periodically spotlighting insights from realtors around Michigan. If you’re a real estate agent or expert in the space and you’d like to contribute, click here to submit your info. The following real estate insights come from our friend Shane Parker, Realtor at Community Choice Realty.
You need to understand and be comfortable with your down payment, closing costs, monthly payment, interest rate. This is why getting preapproved is so important. You also need to know your loan type as certain homes only accept certain loan terms/types (Conventional, FHA, VA, RD, FHA 203k, etc) The houses that are on the market right now more than likely won’t be there in a month or more, so going to see them now, without the intention of buying, would only be wasting your time. There is no benefit to going and seeing houses right now if you’re not ready to move at this time
Find Properties You Like
Develop a list of properties that are specific to your wants and needs for a home. Once we’ve developed one, spend some time looking it over, find your favorite top 3-5 houses, and call me as soon as possible.
Drive-By Houses Before Scheduling a Showing
YOU (the buyer) need to go drive by these houses BEFORE we go see them in person. You will know instantly if you don’t like a house by simply driving by them. This saves time!
Put In a Competitive Offer
Once you find your dream home we’ll discuss the price. I’ll do a CMA (comparable market analysis) to determine if the asking price is adequate; it’s valuable information to help you make an informed decision when deciding your offer price. Then I will contact the listing agent to see if there are any offers on the home so we know how to proceed with our offer price. After we’ve developed the offer price we’ll put in the offer using your pre-approval/proof of funds! There may be a negotiation process to go through until both parties (seller and buyers) agree on a purchase price. In this competitive market if there are multiple offers the seller will call for the highest and best offer due by a certain day and time.
Other Tips & Info When Buying
- Closings don’t always happen on time. Prepare for the closing day to move around a bit, even after we get the “Clear to Close.”
- And just because we have the “Clear to Close” from the mortgage company doesn’t necessarily mean that everyone else is ready. I’ve seen it where a certificate of occupancy caused a delay in closing for nearly 2 weeks and the purchasers had to stay in a hotel that entire time!
- So just beware and prepare for hiccups!
Pricing Your House
- Too High: A strategy usually employed in hopes that we may catch a higher offer. The problem with this is that it may stay on the market longer which works against it. Another problem is that if the appraisal comes in low then that’s all the money the lender will give them; an offer with an appraisal gap guarantee would be preferable.
- Just Right: Most common strategy. This is what most people do in order to have a swift process of showing for a few weeks, getting an accepted offer within that time, and closing 30-45 days.
- Too Low: This strategy will usually, but not always, result in a bidding war. There will be a lot of attention and a lot of offers for you to consider.
If you’ve listed too high there won’t be much traffic to the house. My recommendation is to lower the price every week or 2 weeks until the traffic increases. This is what is meant this is what I meant when saying that the market will determine the adequate price.
Get an inspection on your property.
This will provide you with any prior knowledge of defects within the house before we list it or accept any offers and give you time to either make the repair or price the house to adjust for it. On average, inspections cost about $350 – $500.
Get Certificate of Occupancy
In some cities, they require a “Certificate of Occupancy” and other documents. Please call into your city’s building department, or department that deals with property ownership, and see what they require in order for you to sell the home. Without these documents, we cannot sell the property!
About Shane Parker
Shane is an expert real estate agent with Community Choice Realty Associates in Livonia, MI, and the nearby area. He aims to provide home-buyers and sellers with professional, responsive, and attentive real estate services. He’s always there to listen and get you what you really want in a home. Shane is ready to market your home as effectively and quickly, as possible. Call an agent who cares.