Buying a Home in Turbulent Times by Carter Phillip Ferrington , Esq.
A. Figure out Where You’d Most Like to Live….And See If There are Cheaper Alternatives
Even real estate professionals, who’ve been in Washington DC market for decades, discover new neighborhoods, and new parts of neighborhoods which meet the needs of certain clients all the time.
You probably have less time to learn all about every neighborhood, and, chances are, that you’ve driven through only a fraction of the areas in which areas you could possibly buy. Break your priorities into a list of characteristics. Be open to all options.
B. Do Your Homework and Be Ready to Make an Offer
1. Figure Out What You Can Afford
Speak at length with a lender. You’ll want to get pre-approved for a loan. You’ll also want to establish a reasonable price range for a home which you can afford, and get ballpark figures as to what your acquisition costs will be.
You’ll also want to find out what you’re post-acquisition cost will be. These post -acquisition costs include monthly mortgage costs, taxes, maintenance, insurance and all of the other costs of owning a home in the long run.
2. Figure Out What Kind of Home You Want And Need Before you Start
It is necessary to prioritize your wish list, as no home is likely to have everything we’d want. If this it too daunting, at least narrow your initial home search before you start.
Stick to one type of housing to begin with (such as single family homes, townhouses or condos), and an approximate size (square footage, number of bedrooms and baths etc).
3. Get Your Finances In Order
Check your credit, even if nothing seems to be wrong.
Check your credit for irregularities before you start looking. Take steps to correct any misinformation immediately. Keep an eye out for identity theft, particularly applications for credit which you didn’t initiate as identity thieves can sabotage your credit and put you in a non-competitive position to buy a home.
Some Advice About Selling a Home by Carter Phillip Ferrington, Esq.
I. Market Conditions for your Home
Market Conditions for marketing your home remain strong, despite a gradual tightening of the money supply by the Federal Reserve. Interest rates remain very low, and the supply of affordable housing in good neighborhoods continues to be dwarfed by the demand for it, particularly for homes which are in good neighborhood, are close to Metro, and are reasonably priced. We have yet to see any evidence of significant price deterioration.
II. Pricing Your Home
Some agents like to vastly under price a home, in the hope that the low price will convince many potential buyers make an offer. They hope that the resulting feeding frenzy will cause prices to reach, or even exceed the price the seller expects to get.
I am not a fan of this strategy for several reasons: It depends upon simultaneous strong offers to work; It sometimes leads to lower offers, as potential buyers make offers in the ballpark of the lowball price; Prospective buyers may be as likely to be turned off by an artificially created feeding frenzy as they are to be encouraged to offer more. I believe that its best to price within the range that one expects a home to finally sell for.
Similarly, do not over price your home. Don’t assume that buyers will automatically assume that the price is negotiable and that they can offer less. If a buyer sees a home which is vastly overpriced, they will assume that the seller is unreasonable in his expectations and they will just move on to making offer on another home.
Effective marketing accounts for the regular price gap between homes of the same type, quality and location, which sell for very different prices.
A. Your Home Should Be Ready For Its Close Up
To get a top price, your home should be up-to-date, in move in condition and be attractively decorated. If you’re continuing to live in your home while it is on the market, be prepared to edit your possessions to show your home to its best advantage and to make it appear as large as possible. Don’t forget to clean out the closets, make the beds and freshen up the home so that it shows at its best.
B. As Many People As Possible Should Find Out That Your Home is For Sale
Our average listing on the MRIS (the local multiple-listing service) has from 10-20 color pictures detailed descriptions, showing instructions and even directions. We think that this extra work works for you. And, and MRIS listing is only the beginning of our marketing efforts!
We’ll also speak with you about the cost -effectiveness of take-one boxes, internet publicity, postcards, newspaper advertising, open houses, lockbox access for licensed real estate agents and other ways to let people know that you’ve got a great home to sell.
Carter Ferrington is both a licensed real estate professional, and an attorney. He can help guide you through the home buying & selling process as your Agent. Call Carter at 202.332.7323 or email him at Carter@VogelRealty.com