The Power Buyer Knows
It’s a Buyer’s Market…
ONLY, if You Buy
They also know
You Don’t Make Money When You Sell Real Estate…
You Make Money When You Buy Real Estate.
If you’ve been thinking…”It’s time” You’re RIGHT!
Home Prices are Down Interest Rates are at Record Lows Inventories are beginning to shrink
Signaling a “Turn Around” in the real estate market… MakingNow the Time to Buy
Here Are MyTop 10 Tips to Becoming a Power Buyer
10.) Be Financially Prepared Ahead of Time, Get Prequalified –
Make yourself a stronger buyer, you’ll have the advantage as a “qualified buyer”. If the seller knows you can get the loan & close the deal, they will consider your offer more seriously than others that are not prequalified. You’ll need a credit score in the 700′s. We provide a list of qualified loan representatives to help you through the pre-approval process.
9.) Understand How Much You Can Afford –
During the crazy times, Lenders approved borrowers with as much as 55% of their income going toward servicing debt. Today, the lending environment is back to what was considered normal – lenders don’t want to see any more than 36-42% of your income going toward servicing debt. Talk to your lender, find out how much you can afford with your income. We have many qualified referrals that we are happy to provide to our clients.
8.) Know How Long You Will Keep the Loan –
How long are you going to live in the home? If you plan to live in your home 5 years you need to analyze which loan is better for you.
Example: Loan 1: $150,000 0 points $ 0 7.5% IR $1,049 / month Loan 2: $150,000 2.5 points $ 3,750 7.0% IR $ 998 / month *Note: 1 point = 1%
- Take the difference in monthly payments of each loan (principal & interest only)
- Multiply that amount by 12 months to get the annual amount of difference.
- Divide that amount in the $$ amount of points you pay to determine the number of years you will recover the points paid up front. If the number of years is LESS than your anticipated time in your home, you’ll be better off paying the points and getting the lower rate. If it’s higher than you plan to spend in the home, opt for the lower points.
The difference in monthly payments is $51. /month. $51. x 12 months is a savings on interest of approximately $612 / year. Total cost of points divided by $612 is 6.13 years ($3,750 / $612. = 6.13
In this example, you will NOT recoup the points you paid up front with the savings in a lower interest rate. Recoup time in this example is about 6 years and 2 months to break even.
7.) Know What You Need –
There are Needs and there are Wants – two very different things. Needs are usually pretty basic, you need 4 bedrooms for the kids, a good school that’s close and a fenced yard for the dogs. It’s the wants that take a little more time to clarify.
6.) Know What You Want –
Define the features & qualities of a home that are most important to you. As your professional agent we listen to your input and show you only the properties that fall within the parameters of your dream home.
5.) Never Buy Top of the Market –
The better the neighborhood, the better your appreciation over time. Buy the mid-range home in the best neighborhood you can afford. That home will generally appreciate faster than a higher priced home in the same area.
4.) Move Heaven and Earth to AVOID emotional attachment –
If you’re giddy and can’t hold back your emotions about the home you’re considering making an offer on – you’re likely get clobbered in the negotiation. Take a step back and let a professional work on your behalf. There is a practiced skill to successful negotiation.
3.) It takes a Team –
There are many ways a transaction might fall out of escrow. Before entering into escrow you need to know you have an experienced team of professionals that will be working for you. We have a team of experts in their field working with us, we carefully monitor each step of the process to ensure that your transaction moves smoothly to a successful close.
2.) Making The Offer –
Everyone worries about paying too much, there will always be some negotiating even if the seller doesn’t haggle over the offering price. You may want to negotiate furniture, appliances, contingencies, or seller financing. In today’s real estate market, “time is of the essence”, you may have to act quickly. You need an experienced professional on your team throughout the buying process.
1.) Hire a Professional –
Having a third party negotiating on your behalf will work to your benefit. As skilled professionals representing buyers, we look at Four important “market tell-tale signs” do you know what they are?
“There are few purchases we will make in our lifetime like real estate that increase in value while enjoying the benefit of its use; whether you’re enjoying your home as your primary residence or benefitting from flow of rents for income.”
Cathi & Ben Walter are one of the leading teams in the Palm Springs Valley Real Estate Market, If you would like more information about their Professional Representation and becoming one of their “Power Buyers”, email Cathi at Cathi@CathiWalter.com or you can call direct at (760) 218 – 5752.