|General Guidelines when looking to purchase a home.
1. It is always best to find a REALTOR® with whom you are comfortable; and to place your loyalty with that REALTOR®. By building a relationship with a particular REALTOR®, your likes, dislikes, and financing options will be better understood and communicated. A mutually beneficial level of trust can then be established and maintained throughout your buying experience.
2. Be sure to get pre-approved with a mortgage lender. This will ensure that when you are prepared to make an offer, the financing process has already begun; a definite advantage when you are competing with other qualified buyers. Your REALTOR® can then make an accurate representation to the Seller that you are pre-qualified financially to purchase their home. Obtaining pre-approval also helps set your expectations on how much home you can comfortably afford.
3. If you presently own a house, list it for sale as soon as you begin the house hunting process. You will then be prepared to finalize the purchase of your new home quickly, without the burden of having a home sale contingency.
4. When you have found your new home, try to move forward in the negotiating process as quickly as possible. Try to keep any contingencies to a minimum. This will help ensure that the Seller gives your offer the best possible consideration.
5. A common question from Buyers and a major source of misunderstanding has to do with the handling and presentation of multiple offers to the Seller. Below are a few facts to keep in mind:
- The Seller does not have to entertain or accept offers in the order in which they are received.
- The Seller is not required to accept the highest offer.
- There are many factors that may influence the Seller in accepting one offer over another; they include the Buyer’s down payment, financing amount, closing date, and contingencies.
6. An Offer is NOT a Contract. An offer is the Buyer’s written notification to the Seller that the Buyer is interested in purchasing the Seller’s property. An offer becomes a contract only when all parties have signed and dated the offer, initialed and dated any changes to the offer; earnest money consideration is collected, AND a fully executed copy of the offer has been delivered to all parties. It is then and only then a contract.
The Facts About Today's Real Estate Market
- 90% of all home buyers use a real estate agent
- 81% of today’s buyers use the internet as their primary real estate information source
- 88% of sellers were satisfied with their real estate agent’s service and results
- 47% of buyers in the Northeast were first time buyers
- Average first time buyer is 32 years old • Average repeat buyer is 46 years old
- Average income for the buyer in the Northeast was $71,600
- Only 2% of first time buyers made over $200,000 in the Northeast
- Only 7% of repeat buyers made over $200,000 in the Northeast
- The average home buying search takes 10 weeks looking at 8 properties
ADVERTISING, PROMOTION and the WEB
Sources buyers used to find the home they purchased (distribution of most frequently offered responses)
- 90% Agent
- 77% internet
- 71% Yard Sign
- 50% Print Media
Where buyers first discovered the home they purchased
- 36% Realtor
- 24% Web
- 15% Yard Sign
- 5% Print Media
According to real estate agents, most effective method to market a property
- 84% Web
- 79% Yard Sign
- 57% Open House
- 50% Print Advertising
81% of all today's buyers use the internet as their primary real estate information source.
44% of today's buyers find a real estate agent through a personal referral.
FOR SALE BY OWNER
For sale by owner activity has dropped by 46%from 1991 to 2005
22% of all for sale by owners were sold directly to family or friends
Approximately 70% of FSBO sellers eventually turn to a REALTOR® to sell their home
Only 9% of all for sale by owners are sold directly to a previously unknown buyer contacting the seller directly
Sources: 2005 National Association of REALTORS Profile of Home Buyers and Sellers; Real Trends 2005 Brokerage Performance Report; RIS Media