“A home that meets my needs, at the lowest possible price”, is what every home-buyer states. Yet, when a home buyer goes shopping for a home, two homes compete for their dollar: a home that meets their needs, and a home that fulfills their desires. The goal is to find a home that best meets these two criteria. However, in the real world, this rarely happens. Usually, it is a compromise of needs against wants relative to price.

Sometimes, a buyer falls in love with a home for the wrong reasons. Later, they regret the choice because the home does not match their needs. It may be too big, too far away from work or school, or even too large to maintain. In the long term, a dream home ends up being a costly investment.

To buy a home you will be happy with sounds simple, but it can be very traumatic if you do not decide what you want in a home before you shop. Take off the rose-colored glasses. As much as possible, look at your needs and the home you are considering, objectively. To get you started, fill out the following items below:

What do I absolutely NEED in my next home:
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What would I absolutely LOVE in my next home:
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How prices are set
Usually, four common strategies are used to price a home. Understanding these techniques can help you get a better deal on your home, while matching your needs.

1. Greatly overpriced
Every seller wants to get the best price for their home. In a hot market you need to be careful with multiple offers, the battle may be won by inflating the price, anywhere from 10-20% of its true market value. We will Determine a fair offering price range before getting into a bidding war.

Or, too high a price could leave the home on the market for months. The home could be great, just offered at the wrong price. If it does not sell, it could be considered a problem. The price may have to be reduced to sell it.

2. Somewhat overpriced
Homes in this category also tend to sit longer on the market. The reasons: there may be room for negotiation in the price, or the seller is emotionally attached to the home.

3. Priced at fair market value
These homes tend to sell within a reasonable time, at close to the asking price. Competitively priced, their price represents a thorough analysis of other homes on the market.

4. Priced below fair market value
For various reasons (including health, relocation, condition of the home, divorce), a seller may want to sell a home quickly. This type of sale often results in multiple buyers, with the home being sold quickly.

I can provide you with a thorough analysis of any home you are considering. This price will be based on market conditions, similar homes in the neighborhood and condition of the home. At the same time, your Real Estate Professional will work with you to match your needs to the price, in a great neighborhood.

Buying a house is the biggest investment most people will make in their lifetime, and the complex process can be intimidating to many homebuyers. Knowing the right questions to ask and receiving professional advice will help your clients make a sound investment for their future.

Whether they are buying their first home or moving across country, navigating everything from jargon to home buying basics can be scary and overwhelming.

Before your client begins the purchase process, make sure they have answers to these top homebuyer questions. Each is a critical component to making an educated and informed decision.

Top Homebuyer Questions

1. Where do we want to live?

The first step is to help your buyer narrow down a location and style of home. They have probably already researched online to get a sense of pricing and area.

Help them determine what factors are most important when it comes to choosing a neighborhood such as schools, commute to work, shopping, entertainment and how quiet or peaceful the neighborhood is versus a hustling and bustling urban area.

Knowing the answers to these questions before they get in the car will save everyone time and frustration by eliminating developments and neighborhoods that are of little to no interest. If you are out viewing homes in a specific area, let your clients stop and talk to homeowners. They need to understand why others enjoy living in that area.

2. How much money do we need to have saved?

The mortgage product that your client selects will assist in determining down payment requirements. This is why it is so important that they speak with a licensed mortgage representative to discuss their down payment and mortgage options prior to viewing homes.

However, there are additional costs associated with a purchase that they must be aware of:

• Make sure they have enough money set aside for closing costs and other related expenses
• They will need to prepare for the cost of a property assessment, lender appraisal and home inspection
• Moving costs including the transfer of all utilities and services such as heat, water, TV

3. How much would we like to spend monthly?

Unfortunately, many people bite off more than they can chew when purchasing a home because they look at the total purchase price instead of the monthly payments.

Keep in mind that what they qualify for isn’t always the same as what they can afford. A pre-approval letter is something you should get at the front-end to ensure you are looking within the right price range and your client is comfortable with their mortgage options.

A licensed mortgage loan officer can provide a total monthly payment including principal and interest, property taxes, homeowners insurance and monthly mortgage insurance if applicable.

You may also want to advise them that there may be additional expenses when purchasing a home, townhouse or condo:

• Heating/Gas/Oil
• Electric
• Water
• Homeowners Association Fee
• Landscaping
• Cable/TV
• Sewer

4. Why should I work with a buyer’s agent?

Choosing a real estate professional is one of the first decisions a buyer will make. It is also a very personal decision depending on the qualities most important to the buyer.

While traits such as honesty, integrity, knowledge and experience are all very important, it is also vital that your clients feel comfortable with the real estate professional they choose. Encourage potential clients to research before making a decision by looking at LinkedIn and other online profiles.

A buyer’s agent works as an advocate, providing guidance as well as open lines of communication. Explaining the purchase process and keeping the buyer informed along the way is a way to work together through the buying process. For more information on a buyers agent, view the video below.

Source (Karlton Utter : bhgrealestateblog.com)