Info Buyers Need to Know
mlro...@cinci.rr.com
On a recent trip to the grocery store I was behind a man who argued
with the clerk over the price of a roast he was attempting to buy. It
was late at night, everyone in the line was tired and ready to go home,
and the clerk and his manager argued with the man until things almost
erupted into a fistfight.
His claim was that the price the meat was ringing up for was not the
price in the ad.
"I came here specifically to buy this roast," the man screamed,
"and I want it for the advertised price."
After all sorts of drama, I finally offered to pay the difference so
the guy would get the heck out of the line. Disgusted, he stomped off
without his rump roast.
Had this man gotten his meat for the price he had driven across town
for, he would have saved under $2.00. Now, even the most fuel efficient
vehicle would make a trip across town to save that amount seem stupid.
Not to mention the time that would go into researching the price of
different grocery items at various stores. But people do this all the
time!
Now, it comes time for people to make the most important investment of
their lives- the purchase of their home. That should take some
research, wouldn't you agree? Of course, you'll want to look up
some information on the school district and their scores, how close the
home is to shopping or entertainment, what kinds of parks or sports
arenas are nearby, how accessible the house is to the highway, etc.
The number on thing you would want to know is how much your
neighbors-to-be paid for their homes. If you were looking for a three
bedroom two bath ranch you would want to see what other ranches with
those same specs have sold for around your subject home lately.
Well, there are some people who do all this work and research
themselves. They go online or make some phone calls and determine what
areas interest them. Then they look for homes that are priced at or
below market value. They drive around searching out this perfect house
in their well researched area, calling all the numbers on all the signs
in all the yards. While they are out looking they probably stop at
every grocery store they pass to purchase whatever is one sale so they
can save a buck like our rump roast guy.
In other words, they run themselves to death to try to save a few
dollars. It doesn't matter whether they actually save or not, all
that matters is that they feel like they got a bargain.
And then there are the smart buyers, the ones that know this....
1. The listing agent already has a relationship with the seller of the
home you are calling on the sign about. They met that seller long
before you ever happened by their sign. They want to sell you that
house because that is what the seller has hired them to do. Despite all
the ethical and legal requirements that agents are bound by, we are all
human and it's human nature to feel loyalty to those we have an
existing relationship with.
2. Your agent's job is to find homes that match what you're looking
for. The majority of the homes you want to know about are on the
Multiple Listing Service used by agents to see what is listed by all
the companies who are signed up in the area. If you have email your
agent can set you up with an automated search so you can see the new
listings as soon as they come out. This will free up your Saturday
afternoon of driving around and calling every sign you see trying to
determine prices of homes- with that system you will already know.
You can search homes that are listed on the Dayton or Cincinnati
Multiple Listing Service from my site any time at www.mariarogers.com.
3. A good agent will be able to tell you what neighborhoods are
generally in your price range in your city of choice. I have people who
call on $130,000 listings to ask the price and then tell me that their
price range is up to $60,000. This caller goes immediately into my
"head in the clouds file." After about a week of looking through
homes you should know what areas are in your comfort zone and which
ones you can dream about moving up to later when you cash out the
equity in the smart purchase you are getting ready to make.
4. Do not assume that a "For Sale By Owner" house is a bargain. It
might be, just like a listed home might be, but I have seen so many
people get burned by sellers who don't know or don't care what
their house is worth, and want to pass on their problems to you. If you
are interested in a house that is for sale by owner, ask your agent to
get you in to show the home. Most sellers will allow this and in the
end it protects you.
5. Beware the agent or seller who can't or doesn't show you example
sales, also known as "comps" or "comparable sales" in the area
before you make an offer. Never take someone's word for what a
property is worth- you should always ask to see these before making an
offer on a home. Also remember that sales can fluctuate from high to
low in an area- make sure you are seeing all of the comparable sales
and not just the ones hand picked to justify the seller's asking
price.
Copyright 2005 www.mariarogers.com