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Reasonable Interest Rates and a Healthy Inventory Have Created a Great Home Buying Opportunity!

[continued from Page 1 - written by Mike Cooke]

No. 5 - Always use an agent when buying a new house because you are paying for it anyway. A large percentage of new homes are sold to buyers who have agents representing them.

Since there are many advantages to a builder in having a one-price policy (i.e., the price is not reduced for buyers who are not working with an agent), most new home builders have a cooperative marketing arrangement with the Realtor community.  Agents agree to show new homes to their buyer-clients, when appropriate, and builders do not charge a higher price to such buyers and do not offer a lower price to a buyer who is not working with an agent.

Thus, a buyer who buys directly from the builder without the help of an agent actually pays for representation but does not get the benefits of it --he or she could have had the services of an agent at no extra cost!

As a buyer's agent, I can provide you with many valuable services including price negotiation strategies, lot selection, advice about options and upgrades to increase resale potential, shopping for financing and so forth. In fact, in my experience, many of the hardest homes to resell are those where the owner bought directly from a builder without the help of an agent and ended up making poor choices about the lot, optional features or decorator items. Don’t forgo the use of an agent when buying a new home.

Important Note: Most new home builders require you to be accompanied by your agent on your first visit to a new home community or at least require some timely notice that you are working with an agent. To protect your rights to have an agent represent you, talk with me early in your house hunting efforts.

No. 6 - Negotiate the best overall deal. A typically home purchase contract in Colorado has 129 blanks that must be filled in. All of them are important.

Obviously, price is a very important issue.  Many sellers initially set their asking price too high while more motivated sellers may price their homes below market value to generate a quick sale. A good buyer’s agent can help you sort out the price issue quickly and efficiently so that you do not overpay on the one hand or miss out on a good deal on the other hand.

Also, do not neglect the other 128 blanks in the contract. Provisions related to possession dates, financing, title insurance and others can be structured to save you money or make the transaction more favorable for you.

Even though most real estate deals are done using standard contract forms, every blank in the contract represents a decision that you need to make and many of these decisions have significant legal implications. My goal is to make sure that you are as informed as possible about all the decisions you need to make and to make sure that your rights are protected as much as possible.

No. 7 - Conduct an independent inspection. While sellers in Colorado are required to disclose known defects in their homes, most are unaware of the importance of doing a thorough job. Therefore, you should never buy a home without having it inspected. An inspection may uncover problems that were unknown or undisclosed by the seller. 

It may also be important to complete other investigations about the property that go beyond just evaluating its physical condition. While the standard real estate contract only gives you the right to complete a physical inspections, I have a special clause I place in all purchase contracts for my buyer clients.

This special clause gives my clients some very broad inspection and "due diligence" rights. For example, you could have your purchase contract reviewed by an attorney. Or, you might use your expanded inspection rights to checkout the neighborhood schools and make sure that you are satisfied with them. If any of your inspections or investigations turn up problems, you will have the right to cancel the contract without the loss of your earnest money.

Bonus Tips Nos. 8 and 9 for Today's Market: Here are a couple additional tips for taking advantage of today's great inventory and low interest rates:

1. Make fewer compromises.

2. Buy more house than you need.

When we meet to discuss your home buying needs, be sure to ask me about why these items are crucial to making a good buy in today's market. 

Conclusion:
Are you thinking about buying a house? I have many additional ideas and strategies to help you be successful in today's market. Call me. I'd love to help you with your next home purchase.

Want to Know More?
You can find more in-depth information about many of the topics that were covered in the special report that your just read:

Inspections
A pre-purchase inspection is one of the most important steps in any real estate transaction. At the same time, inspections are one of the most misunderstood issues in real estate. Find out what a good inspection can (and cannot) do to protect you from buying into unforeseen problems.

Loans
If there was a special loan program at a below market interest rate that would save you tens of thousands of dollars, would you want to know about it? Please don't go shopping for a home loan until you've checked out this deal.

New Home or Resale Home?
Buying a new home – one that is brand new and has never been lived in before – is exciting. At other times, a resale home may be more suited to your needs or may represent a better value. Learn how to make an informed decision on this matter.
  

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