How Most Homes Are Bought

How to get from your existing home into your next home in the right timeframe, with the most money in the bank.

Knowing the answers to these questions will help you with both parts of the process. If you currently own a home, understanding how homes are bought will help you make better decisions about pricing and presentation, as well as the decision of who to select as your agent and how much to pay them. Whether or not you own your present home, if you’re thinking of buying a home, we want to suggest that there is a best way to find your new home.

I’m going to assume that you’re looking for something special. Most people are. You might accept something that isn’t exactly in new condition, but other than painting a room or two, you’d really like something that’s ready to go. Obviously, you want to get it for the right price. A bargain would be nice but you definitely don’t want to pay more than what the home is worth. Maybe at this stage you’re just curious, so you’re browsing the MLS, stopping in at the occasional open house, and looking in the newspaper and real estate guides. This is certainly fine for browsing, but what you need to know is that if you’re getting serious about making a move, the good houses that are priced correctly are offered to direct clients of realtors days before they even hit the MLS. The rest are often either over-priced or have “issues”.

What are the implications for buying a home?
Access to more “good” homes that are priced properly means not settling for something second best. Browsing the MLS and real estate guides and driving around looking for yard signs and open houses is fine for getting ideas early in the process, but if you’re starting to get serious, you need the help of a full-time real estate professional that has access to the most new listings, preferably before they hit the MLS. There are lots of problems with keeping all your options open and looking around on your own, nearly all of which can be alleviated by meeting with a full-time real estate professional, and allowing them to “tune in” to what you’re looking for. You’ll want to find someone that asks questions and listens attentively. Just as important, you want someone that has access not only to the MLS, but to the most “in-house” listings reserved for a period of time for direct clients. You’ll end up with more choices of “good” homes new on the market that aren’t over priced, so you’ll find what you’re looking in the right time frame.

Implications for selling your home?
Get your home sold in the right time frame for the right price, with the least hassle.
According to the National Associate of Realtors, 39% of homes are sold as the result of buyers working through a real estate agent, far exceeding yard signs, the internet, newspaper, etc. The most common and preferred way homes are sold is that, first your home is sold to other agents, and they in turn, sell your home to their direct clients. There are three overwhelming factors that most often lead to a successful sale.

1. The price and presentation of the home itself.
2. The number of top producing real estate agents to whom your home will be sold.
3. The number of qualified buyers with whom your prospective agent is in contact.

Your friend with a real estate license can have 20 years in the business, and have a 78 point marketing plan, but if you want to maximize your chances of a successful sale, make sure you know how many top producing agents are going to see the inside of your home. Also, make sure you pick someone that is candid with you about the condition and appearance of your home, and works with you on what is the right amount of time and money you’ll want to invest so you end up with the best bottom line. If you’re home has good curb appeal, requires minimal updating on the inside, and is priced correctly, the agents viewing your home will be much more excited about presenting it to their clients, and that excitement will radiate through to prospective home buyers. Make the effort to get your home in marketable condition. Take down wallpaper and paint with neutral colors. Clean up and store clutter. Put away personal effects like pictures and collectibles making it easier for home buyers to picture their family and their things in their home. And do not price your home higher than the market thinking you’ll negotiate a higher price. A good buyer’s representative is going to compare homes already sold, and show the buyer your competitors’ homes. And they may not want to tie themselves and their earnest money up for the time it takes to go back and forth on the price with you.

Look at things from both sides Billions of dollars are spent each year by companies wanting to better understand the thinking and behavior of their targeted customers. If you’re a seller at the moment, reread this article through the eyes of a buyer and imagine how they’re going to perceive what you offer in contrast with your competition. As a buyer, know that most sellers want to sell their home quickly and get a good price. Fall thru’s are absolutely devastating for the seller, and a good listing agent is going to explain to them the implications of contingencies before accepting your offer and taking their property of the market. That being the case, if everything is in order, you will be able to negotiate the best price. If your financing is approved before you make an offer, your existing home is sold or is at least pending, and you use specific verbiage about the home inspection contingency, your offer is going to be taken seriously. If you’ve been “pre-qualified” instead of approved, your house was just listed, and you want to have the freedom to opt out if you don’t like the home after the inspection, don’t be surprised when the seller holds out for something better, even if you offer full price.