Buyers

Now that you’ve found your perfect home, it’s time to get organized to make the best offer possible. Here are some things to consider:

Go local. Sellers and their Realtors® prefer to see preapprovals from local lenders. Local lenders have a known track record for being able to deliver on the loan promises, and local lenders understand the specific market and regulatory conditions that directly affect the property. Choosing a reputable local lender can give you an edge in competition. Ask your Realtor® for recommendations.

Remember your financial limits. Ensure your preapproval from your lender is current, and don’t make any big purchases once you’ve been preapproved. Reviewing your finances now will keep your offer in perspective, and ensure you make an offer you can follow through on. This is especially true if there are multiple offers for the home you want.

Think like a seller. While you naturally want the most house for your money, the seller wants the most money for their house. You may have very different ideas from the seller on what the most valuable or attractive features of the house are. Talk with your Realtor® – he or she should be able to give you some insights into the seller’s wants and goals.

Find a win for everyone. Remember the lesson learned as kids – that we need to learn to give and take, and do it gracefully? Your offer should do the same thing: ask for what you want, but find ways for the seller to feel they are winning too. Be prepared to compromise. It’s not personal, it’s a sale. Don’t make it personal.

Keep it simple. Try to avoid padding your offer with unnecessary contingencies, or complicated terms and trade-offs. Do keep your inspection, loan and appraisal contingencies – but make the length of time for each of these as competitive as possible.

Love letters. A simple gesture can make the difference. Write a letter telling the seller what their home will mean to you if you lived there, and ask your Realtor® to include it with your offer. What features about the house and yard and neighborhood do you respond to? Why? How would you live in their home and make it your own? Most sellers are emotionally attached to their homes, and want to know the home will be well lived in and well cared for once they pass on the keys. A ‘love letter’ can give you an edge, especially if it is sincere.

Cool head, warm heart. Negotiating is the time for a cool head. No matter how much you love the home you’ve found, now is the time to think through the process, remember your limits and requirements. You may be trying to buy your dream home, but this is a business transaction. You’ll be better able to understand the seller’s intentions during negotiation if you keep your feelings in check, and think about how you each are trying to make the best deals.

Not all real estate practitioners are REALTORS®. The term REALTOR® is a registered trademark that identifies a real estate professional who is a member of the NATIONAL ASSOCIATION of REALTORS® and subscribes to its strict Code of Ethics. Here are nine reasons why it pays to work with a REALTOR®.

1. You’ll have an expert to guide you through the process. Buying or selling a home usually requires disclosure forms, inspection reports, mortgage documents, insurance policies, deeds, and multi‐page settlement statements. A knowledgeable expert will help you prepare the best deal, and avoid delays or costly mistakes.

2. Get objective information and opinions. REALTORS® can provide local community information on utilities, zoning, schools, and more. They’ll also be able to provide objective information about each property. A professional will be able to help you answer these two important questions: Will the property provide the environment I want for a home or investment? Second, will the property have resale value when I am ready to sell?

3. Find the best property out there. Sometimes the property you are seeking is available but not actively advertised in the market, and it will take some investigation by your REALTOR® to find all available properties.

4. Benefit from their negotiating experience. There are many negotiating factors, including but not limited to price, financing, terms, date of possession, and inclusion or exclusion of repairs, furnishings, or equipment. In addition, the purchase agreement should provide a period of time for you to complete appropriate inspections and investigations of the property before you are bound to complete the purchase. Your agent can advise you as to which investigations and inspections are recommended or required.

5. Property marketing power. Real estate doesn’t sell due to advertising alone. In fact, a large share of real estate sales comes as the result of a practitioner’s contacts through previous clients, referrals, friends, and family. When a property is marketed with the help of a REALTOR®, you do not have to allow strangers into your home. Your REALTOR® will generally prescreen and accompany qualified prospects through your property.

6. Real estate has its own language. If you don’t know a CMA from a PUD, you can understand why it’s important to work with a professional who is immersed in the industry and knows the real estate language.

7. REALTORS® have done it before. Most people buy and sell only a few homes in a lifetime, usually with quite a few years in between each purchase. And even if you’ve done it before, laws and regulations change. REALTORS®, on the other hand, handle hundreds of real estate transactions over the course of their career. Having an expert on your side is critical.

8. Buying and selling is emotional. A home often symbolizes family, rest, and security— it’s not just four walls and a roof. Because of this, home buying and selling can be an emotional undertaking. And for most people, a home is the biggest purchase they’ll ever make. Having a concerned, but objective, third party helps you stay focused on both the emotional and financial issues most important to you.

9. Ethical treatment. Every member of the NATIONAL ASSOCIATION of REALTORS® makes a commitment to adhere to a strict Code of Ethics, which is based on professionalism and protection of the public. As a customer of a REALTOR®, you can expect honest and ethical treatment in all transaction‐related matters. It is mandatory for REALTORS® to take the Code of Ethics orientation and they are also required to complete a refresher course every four years.

Reprinted from REALTOR® magazine (REALTOR.org/realtormag) with permission of the NATIONAL ASSOCIATION OF REALTORS®. Copyright 2008. All rights reserved.