Top 10 Tips for Buyers

Tip #1:
Be as clear as possible about what you really want before contacting a Realtor®:

• Take time and drive around to different areas, see different locations, get a feeling for what areas feel right, meet your goals and needs
• Consider your age and ability to take care of land—size of acreage, mowing, plowing, etc. as compared to the condominium lifestyle for example
• How much privacy will you trade off for convenience — close to town amenities, or the big spread in the country

Tip #2:
Have a realistic budget:

• If financing, take the time to get pre-qualified as this will make you a stronger buyer with more credibility as well as confidence
• Let your Realtor® refer you to their network of local lenders who have a strong vested interest in our communities and who are typically more efficient and responsive than out of the area or internet based lenders
• Be prudent and reasonable. In other words, be realistic in your expectations and reasonable in the negotiating process

Tip #3:
Engage an experienced Realtor® with a wide variety of knowledge – the more years of proven success and experience the better.

• Has a knowledge of construction as well as the market so they can help you assess the quality of the homes under consideration
• Takes the time to get to know you and understand your needs and wishes for your new home
• Is familiar with the myriad details of today’s complex transactions including surveys, sewer and water issues, environmental aspects, financing, zoning laws, etc.
• Has proven skills and background in negotiating effectively for your interests while maintaining cordiality and confidentiality with all concerned from the sellers to attorneys, inspectors, other brokers, lenders, etc.

Tip #4:
Be prepared for expenses associated with ownership:

• Some residential properties may have income potential (rental apartment, two family, seasonal rental, etc.) but all have carrying costs
  • Debt service on the mortgage, real estate taxes, insurance
  • Dues or association fees in the case of a planned subdivision or condominium ownership
  • Snow plowing, mowing, yard care
  • Maintenance, repairs and upgrades to the property or structures

Tip #5:
Be aware of changing markets, both favorable and unfavorable:

• New development, schools, businesses coming into area
• Second home buyers moving in to compete with first home buyers
• Spillover effect from neighborhoods or towns nearby
• Job or plant expansions or closings
• Effects of potential uses permitted under current zoning and potential for changes in zoning

Tip #6:
Be patient if you don’t have to buy immediately, but be prepared to act quickly when the right property comes along:

• Real estate is an illiquid and non-homogenous market
• All homes and properties are unique, and what you want may not be available
• Market trends will affect the amount of listings and buyers often putting upward or downward pressure on prices which in turn brings out more sellers or buyers which affects the degree of choice
• Promptly go after the really good properties that are priced right — other buyers and agents will recognize the same thing so when the shoe fits, act decisively
• Making an offer does not assure you of getting the property or priority consideration. The negotiations are not over until both parties have signed and returned the contract. Until that happens, other offers can come in, the property can be purchased by anyone

Tip #7:
Comparison shop for value, just like you would for a car or any other major purchase:

• Listing prices can vary considerably from Fair Market Value (FMV). Some sellers may be overly optimistic, others may be highly motivated to sell quickly and even below FMV
• All homes are definitely not the same — many factors affect value, including location, condition, amenities, aesthetics, seller motivation
• Check comparable sales in the area for 2 or 3 years — 6 months is not enough time in some areas and markets if sales have been infrequent — a well informed experienced Realtor will have access to this information

Tip #8:
If you are building, have the right contractors and tradesmen available, and have a realistic schedule of just how long the process takes.

• Good building contractors are busy and will most likely not be available at the drop of a hat — sometimes up to a year or more for the desirable ones — give yourself lots of time
• Winter impacts construction and schedules, even with modular construction
• An experienced Realtor may be able to refer you to reputable modular home builders and general contractors
• Building isn’t for everyone, but can be very satisfying if you have realistic expectations and the right temperament to manage the unexpected

Tip #9:
Consider buying residential investment property for living and building equity

• For example, some will start out with a duplex or multi-family, living in 1 unit and renting the other(s) for income and to support the purchase
• Check with a professional tax advisor regarding incentives that may be available to you including depreciation and other write-offs
• After building more equity, it may be possible to use this property as a spring-board to your next investment property or a single family home

Tip #10:
Consider buying a larger property than you might have planned:

• Lower cost per square foot or land area
• Possibility of subdividing or further developing to lower cost even further
• Special tax status for managed woodlands and active agricultural use
• Creates opportunities for other family members to live on the property or for future family needs

Top Tip for anyone considering a real estate investment:
Experience and a proven track record of the chosen Realtor® in the type of real estate that interests you could make a significant difference in the outcome of your transaction.