Choosing the right home

Very often I hear agents talking about their frustrations with buyers. With so many homes on the market now, how does one select which house to make an offer on and how much should that offer be in relation to list price.

For the agent, the key is listening and guiding but allowing the buyer to make their own selection. Just a couple of days ago I was chatting with someone who recently bought a home and we had a good laugh over their selection process. True story. I was working with a couple who were taking copious notes on each house we toured. (This was in my early days as an agent) Finally I turned and asked the buyers if they had any intention of making an offer on that house. I asked because it was clear from their body language inside that they did not like the property. They said "no" so I told them to stop taking notes, fold the printout in half and set it aside. I explained that after a few properties they would all start to run together so only take notes on real possibilities. After each home discuss which home is at the top of their list for that day. At the end of the day, there is one clear winner. There may also be others in consideration but they know which one they liked best and put the ones they didn't like out of their mind.

For the buyer, another true story. I've had many buyers, over the years come in with a list of what their house was to have in it. I learned to tell them to hold on to that list and compare it to the house they actually bought. They never matched. Here is the barometer I tell my buyer clients to use. Obviously the house has to be a fit. If you have four children, don't buy a two bedroom. On the other hand, if the house has everything on your list but you don't like it. It just doesn't feel right. DO NOT BUY THAT HOUSE. You will hate life every day when you come home. Buying has some logic (bedrooms, baths etc.) and a lot of emotion. You have to "feel" at home in the house. You may even fall in love with a house that isn't a perfect fit but you're willing to do the necessary improvements to make it what you want.

The offer. In many places across the country we are in a buyers market. Note there is a difference between negotiating the price because of the market and thinking the seller is in such a desperate situation that they will give the house away. In fact, I have seen sellers become so offended by very low offers that they refuse to deal with that buyer at any price. Depending on your state's laws you may have an agent representing you exclusively. They can show you what similar properties have sold for and help you structure an offer that is best for you and likely to end up in a successful real estate transaction.

A word about short sales and bank owned properties. If you are looking at short sales make sure your agent is familiar with the process. It can be a rather lengthy process however the average time seems to be shortening a bit as both lenders and agents become more familiar with this type of transaction.

Bank owned properties are usually easier to deal with than short sales but they can also have some pitfalls. Those usually involve securing clear title and property condition. The bottom line is to learn as much as you can from your real estate professional about the market, the loan process and what is involved in each type of transaction.