Buyers, Be Armed!

Armed with information, that is! As you browse homes on the internet and start venturing out to see them, how do you know when it's a good deal? How do you know that you won't get stuck with a "money pit" that will require massive repairs that you can't afford? How do you beat out the competition and get a contract on the home once you find it?

Here's how:
1. Work with a Realtor- I'll try not to be overly biased when I say this: I truly believe that you are at risk when you are unrepresented in a home purchase.

• When a home is listed, the seller is already offering to pay for the buyer's representative. It won't cost you anything extra!
• Why not have a professional on your side to help you negotiate and wade through the fine print to make sure your interests are protected?
• A great Realtor will provide you with numerous tools so you can make well-informed decisions.

2. Look at a Comparative Market Analysis- Before I show a home to a buyer I do a comparative market analysis, or CMA. This CMA shows us what similar properties in that neighborhood have sold for so we can judge if the asking price makes sense. Without it, you have no basis for justifying the price.

3. Look up the tax records- I also pull the tax record for every home I show to a buyer. This extra piece of information tells us the sales history of the home and important facts like the recorded number of bedrooms and square footage. It's also helpful to know if the current owner bought it just a couple months ago to renovate and 'flip' or if it has been in one family for generations.

4. Be pre-approved for a loan- I wrote a recent article with more specifics about this, but it definitely needs to be mentioned here. When you're pre-approved, the home seller can know that a lender has looked at your finances and there should be no snags to you purchasing the home. This will be a huge advantage for you in situations where there are other competitive offers for the same home, which happens quite often.

5. Do a home inspection- This is a common part of the process, but shouldn't be overlooked. A great home inspector will give you a report of all the repairs that need to be made on a property and let you know about any 'red flags' that might need any further inspection. It is a fabulous tool and really helps with any fears that you have about the condition of the home. Cost usually starts around $250, but it is money very well spent.

6. Have your checkbook ready and be decisive- Once you've done some research and toured a few homes, you start to get a better idea of what is available and what you can expect to find. Now when you see a home that is a good buy, you'll know, because you're "armed"! At this point you should make sure to have a checkbook with you and enough funds to cover the earnest money check. Earnest money is basically a deposit that shows that you're a serious buyer and committed to seeing the process through to close.

It takes some extra effort and preparation, but it's all worth it to be in the best position possible to buy a home you love at the best price. If you're ready to get armed and serious about your home search, please call or email and we'll get started today!

-Peter

www.nashvillecityhomes.com
REALTOR. City Home Specialist.