To Buy or Not to Buy?

One question that eventually comes up with almost every one of my clients during the home-search process is "should we make an offer on this house?"  In other words, what they are really asking is "is this the best we are going to find or should we keep looking?"  Once again, I have to dig out the crystal ball.....

The answer to that question has many facets.  Whether I tell a client "yes, maybe you should" or "well, maybe not" really depends on the individual situation. I never try to answer this question for my clients but I try to put the question in perspective.

Here are some of the variables that factor in that question:

• How long have you been looking?
• How many houses have you seen so far?
• How does this house compare to everything else you have seen?
• Does it "feel" like it could be the "right" one?*
• If you don't make an offer, what are your options?  Is there anything else out there that you like?
• Can you live with this one?
• If nothing better comes up will you be disappointed that you didn't try for it?
• Does it meet most of your needs and some of your "wants?"
• How long are you willing to wait for the "right" one if this one may not be exactly the "right" one?

There are many different answers to these questions and any given time.  It's really hard to ever say that a particular home is the "right" one.  You may never know that for sure, partially because there may be no right "one," but there may be several homes out there that will meet most, if not all, of your needs.  If you feel that there can only be one "right one" your criteria may be a little narrow.  If you are being realistic about your potential purchase you will probably find that there are usually a few homes that will work for you.  That is really the best position to be in.  If you think "that's the one!" and you end up not getting it everything else will pale in comparison and you'll never be satisfied with another home after that.  

I mentioned "wants" and "needs."  Drawing the line between "wants" and "needs" can be a challenge.  I try to help people realize that needs are more important, and that sometimes what we define as a "need" is really a "want."  This becomes pretty evident when you have a certain price point and you find, as a buyer, that your just not going to get all of your desires in your price range.  Things that were originally  "needs" sometimes become "wants" as you look through homes and take notes.  We all have to make sacrifices when purchasing a home.  Nobody ever gets all of their needs and all of their wants.  Like the old saying goes "you can't get a champagne house on a beer budget."   They key lies in making an honest assessment of your own wants and needs and in understanding the market in your price range (what can I get for my money).  If you can do that you will have a pretty good idea when a house might just be the "right" one for you, or at lease one that meets most of your criteria and that is a good value for what you are looking for.

So, is something better going to come along?  Well, that's hard to say.  Have listings been coming on the market that meet your criteria?  Is this the time of year where listings are increasing, or decreasing? Have you exhausted the list of all possible homes? Are you willing to take your chances that something better will come along?  Are you willing to loose this one in hopes that something better comes along?  Do you have realistic expectations?  That last one is really important one...and might be a discussion for another day.  That being said, hopefully my comments will help you answer the inevitable question "should we make an offer....or wait?"

Can a Buyer's Agent Help if I Want to Build a New Home?

So that's a question we agents get sometimes. We sure can. Many home buyers don't know that Realtors are a very valuable resource to someone who is considering building home, or buying a an "inventory" home (A.K.A. a "spec" home). Did you know that greater than 50% of people who build or buy a new home in this area use a buyer's agent? I'll bet you didn't!

Many people think that a "Realtor" can't really help them with a new-build property because Realtors just "sell homes." But that's not really true if you have a buyer's agent (or in my case, an exclusive buyer's agent). So what can a buyer's agent do for you? Can they really bring "value" to the purchase of a new home?

First off, it's important to understand that almost all builders are "friendly" with Realtor and will pay a "co-op fee" to a buyer's agent. This is built into the price of the new-build. Did you know that? In the old days it was possible that you might be able to "knock this off the price" if you didn't have a Realtor, at least with some builders. However, builders don't do that any more. The good ones, IMO, never did. These days it's just part of the price. If you, as a new-home buyer, don't have a buyer's agent the builder simply pockets the money that is included for your buyer's agent's fee. It's just like having a Realtor on a resale house. The fee is already in there so why wouldn't you get your own representation, somebody looking out for you? Why wouldn't you engage the services of somebody who understands the process and will be there on your behalf?

The other thing new-home buyers need to understand is that the builder representative, or the Realtor who might be working in that model, always represents the builder. Their job is to sell you one of their homes and sell you options. Nothing wrong with that, it's their job. Most of them are very professional and knowledgeable. However, they are biased for their company and aren't likely to tell you any negative sentiments about them or tell you about the positives of another builder. There primary job is to represent the builder and protect the builder's interest. So you should have somebody protecting yours.

So what kind of things can a buyer's agent
do for you if you want to buy a new-build home?

• Most buyer's agents are familiar with most, if not all builders in the area. They usually have contacts at the larger builders and they know the key players.

• A buyer's agent can tell you the differences between builders. For example, what price point they build in, what style of home (production, semi-custom, custom), what materials they use and what is good/bad, who is easy to deal with, who is not, who is higher quality and who is not, etc.

• A buyer's agent can help you through the process and tell you what to expect from the beginning. Many buyer's agents like myself have helped many buyers with new-build homes and have even been through the process personally. I know I have.

• A buyer's agent can help you pick options by suggesting things that you have not thought of since they have been through the process before. They can also tell you why you should/should not add/subtract certain options from a resale perspective. And they can usually tell you what options other buyers like and which may add value to the home.

• A buyer's agent also acts as a "go between" between you and the sales rep or the superintendent. Sometimes you may not have time to deal with an issue or you may not understand an issue that has arisen. A buyer's agent can take care of the problems for you that you are not able to address due to time or lack of understanding.

• A buyer's agent will be there for all meetings with the builder salesperson, superintendent, or otherwise. I also visit your lot weekly, give you a progress update, and take pictures of the home as it is being built. This gives you a pictorial record for future reference and also allows concerns to be more easily addressed.

• A buyer's agent will help you schedule at least (2) home inspections, done by an inspector of your choice. Did you know you should have your own independent inspection, even on a new build? That's right. And a buyer's agent will help you negotiate the problems that arise from the inspections.

• A buyer's agent can help you pick the right floor plan based on your needs, the right subdivision based on your needs, and can help you with lot-orientation and with picking the right lot. There are some lots you absolutely do NOT want to have. There are some floor plans that may be very hard to resell or that may be better for you based on your needs and desires.

• And yes, a buyer's agent can help you negotiate the price of a new build. Granted, there isn't normally as much negotiation as with a resale property but there is usually some room for negotiation. This is especially true of a an inventory home, a home that is already built and is completed or almost completed. Many of those will sell for much less than the asking price because a previous buyer has backed out and the builder wants to move it from their inventory.

• Some builders offer "bonuses" to a buyer's agent, like extra commission, gift certificates, big screen t.v.'s, and even vacations. A good buyer's agent, like myself, will usually pass these incentives on to the buyer. After all, you are really the one who deserves any incentives because it's really your money that's paying for them!

So if you are considering buying or building a new-build home please consider using somebody who has experience helping buyers like yourself and who will be there as your advocate throughout the entire process. I guarantee you will be glad you did.