Whether you are a buyer, seller, builder, or agent, tips for you to know:
- A contingency contract is not a great idea. Contingency contracts can affect as many as 4 or more parties. If you are not able to buy without an immediate sale of your home, you should wait until you can. A contingency contract requires 100% accuracy for all parties – not only your side. Chances are there will be a delay in a loan, an appraisal, or a number of other issues that will affect all transactions tied to one deal. If your agent puts you in a contingency, then it is their job to manage the situation – even when another party falters.
- You should have a loan approval before you go out to view homes. First of all, you should do this as a favor to yourself. An approval proves your financial capability of purchasing a home. In addition, it also demonstrates your “willingness” of going through the process to the parties that will be working with you, i.e. your Agent. Typically an agent will not take you to view homes, until you are approved. I advise clients to shop on-line prior to an approval and get familiar with locations and pricing. Then, when the approval is in hand, off we go!
- Prepare to take an agent with you when you buy from a builder. The sales team or the “listing agent” works for the builder and has their best interest over yours. Remember, this is the law. Whomever represents the builder is working for the builder, not the buyer. If you think you can get a better deal with no representation, you’re wrong. You can try to negotiate yourself, however, if you don’t know what is customary, who pays for what, how much things cost, etc., then you probably won’t know what to negotiate.