Why the Cheapest Home Is Not Always The Best Deal

We all can agree on one thing when it comes to looking for a home in this market....we want to buy the house for the least amount of money that gives us the greatest value for our dollar. But, is buying the least exepnsive home always the best deal for you?

I,for one, love shopping for bargains. I have been accused of waiting for a sale to buy something unless it is an absolute need. I did that with the last home I purchased as well. But, is buying the cheapest home always the best deal for you? There are some variables that you need to take into account when you are looking to purchase a home.

If it is priced signifcantly lower than the rest of the homes in the neighborhood; what is wrong with it? And are you in a position to do those repairs needed to bring the home to the stnadard of other homes you may have been looking at? And if so, at what cost? There is an old adage that my dad used to tell me: "if it is to good to be true; it probably is". That probably hold more true for real estate than anything else right now.

You may be able to purchase a home for as much as 40% to 50% less than the comparable home in the neighborhood is sellign for...but at what cost? If all your savings are going into the down payment and closing costs; where are you going ot get the money to do the repairs? Do you have the time to do them? Does the cost of doing the repairs outweigh what you can buy a home in the neighborhood that does not need repairs for?

I recently had a buyer who negotiated on a home that was substantially less expensive than the others in the neighborhood. From the naked eye it appeared the home was in need of some cosmetic repairs and updating. Nothing to expensive and nothing that would inhibit them from living there if they could not get the repairs or updating done immediately.

However; after having a home inspection; what began as a few thousand dollars to fix a few items and do some updating turned into over $30,000 when the home inspector got done with the list of items he found wrong with the house. Now, that home that was priced 40% less. However; it was not looking like that great of a deal anymore. Besides the large amount of money they would have to spend...going to another home without the repairs would have cost them $83.00 a month more in their mortgage payment versus coming up with over $30,000 just to live in the less expensive house. For them the value of not having to spend the money outweighed the cost of repairs.

Now, there are deals out there. Banks and homeowners will make mistakes and homes will be priced substanitally lower than they should be. You need to look at it as the exception and not the rule. Your best deal may not be the cheapest home in the nieghborhood...it is the one that gives you the most value for your money......

Dave diCecco
Realtor/Broker
www.davedicecco.com

Who is Watching Or Hearing You As You Look At That House?

I came across a question the other day about the ethics of using a nanny cam in a house to see what prospective buyers are looking at or saying. The question was an intriguing one and one that brings to light an even bigger question....who is watching/listening to you?

I personally understand that some people use nanny cam for the protection of their valuables or to watch their children. I do not advocate a homeowner going out and buying one just to see who is looking at their home.

But as Realtors, we are under an obligation to look out for our clients best interests.... So, the questions becomes more do you talk when you are looking at a home inside the house or wait to you go outside? I have always been a believer of the theory; say nothing in the house unless it is empty and vacant. Because only then do you know for certain that noone is listening or watching you.

As I reflected back on why I do that; I tried to remeber what made me feel that way. Then I remember watching a TV show about selling your house and they used the feedback that people said and the video of them to make the house more desirable to sell. I guess it made a lasting impression on me and have always been cautious about that.

As I was talking with some friends about writing this they showed me a babysitter cam they have. I will be completely honest with you in that there was no way I even knew that had a camera and recorder in it with remote access even after they told me. So, how do you know who is watching or listening to you?????? What are you saying when you are in a house??? Are you giving to much information to the seller?

Dave diCecco
Realtor/Broker
www.davedicecco.com

Buying A Home? What To Do After The Offer Has Been Accepted

We all have bought a home or are thinking of buying a home. I know when I bought my first home many years ago I renmeber the Real Estate agent saying to me I will see you on X day at the closing. If you need anything in the itnern call me. I thought wow this is easier than I thought it would be. Now, granted that was a lot of years ago. But, there are agents out there still doing that type of business.

Once an offer on a home has been accepted the process really only has just begun. Chances are (unless you are paying cash for a home) that you would have been in contact with a mortgage professional and woudl have had a pre-qualifed or pre-approval letter in hand. Well now that you have selected a home the mortgage process really begins. They start their process of getting the loan through the system and approved. They will order an appraisal, ask you for pay stubs, bank statements and other items they will need to ensure that the loan will be processed through without any issues.

The Real Estate Agent will (or should) help you locate a home inspector to make sure the home is in move in condition or if it is "as is" what is wrong with the house. Then the agent should be there with you when the home inspection is going on. It is our job to represent YOU the buyer throughout the transaction. How are we suppossed to convey any requests for repairs that may be needed on the home, if we are not there for them. in some cases you may ask for a termite inspection as well.

A closing attorney should be contacted and informed of the date for which you will close. It is their job to make sure you have a clean title and that all the papoerwork is in order. They scheudle the time for the closing and coordinate with the bank for the mortgage paperwork.

You will have to get Home Owner's Insurance for the home. This list is by no means complete. However; on every transaction you cna at least expect these things to have to happen to close. Our job as a Realtor is not over once you find a home...in fact I tell my clients it never is over...I will be there for them down the road as well.

Dave diCecco
Realtor/Broker
www.davedicecco.com