Buyers’ Most Frequently Asked Questions…Answered!

Buyers’ Most Frequently Asked Questions…Answered!

Best Kept Secrets for Buying a Home

An 8-Week Series

Buying a home, no matter if it is for the first time or not, can be confusing. That’s why these tips and strategies you’ll find in this 8-week series will set you on the right path. It’s my own unique approach and a “behind the scenes” glimpse of what you should look out for and consider when starting your own search for a home.

Buying a home, especially if it’s your first time, can be complex and confusing at times.  But, you are not alone!

Just like most homebuyers, you want to make sure you don’t do something wrong. Or, you might worry that you don’t know what you don’t know!

I hear from clients all the time about their concerns and questions when buying a home in today’s market.  That’s why I’m here to provide answers to some of the most common questions so you can become better informed and more reassured.

The questions swirling around in your mind are likely the same ones that other buyers, like you, want to ask too.  And, more than likely, it was the same questions that buyers who went before you have also asked!

And, if you have any questions that aren’t listed below here, reach out and ask!

Even though each buyer’s situation is unique, you’ll find the question/answer sections below helpful in giving you some insight on what steps might be best for you.

Plus, maybe you’ll also learn something “you didn’t know you didn’t know”!

Q:  How do I know the property value will increase?

Although there are no guarantees, there are clues and historical data that are indicative of future performance.  One thing that drives home values in the Cypress area is school performance (check out the Cy-Fair Real Estate School Ranking page here) as well as proximity to shopping & dining.

If you know the area is changing and is going to increase in density or desirability, you are likely to see an increase in value over time, perhaps more than other areas.  I encourage my clients not to go on hearsay, but look at projects that have actually gone through the planning, development, and funding stages.

The good news about the Cypress market in general is that our population is increasing, our unemployment is low, and our economy is booming.  That is a recipe for an increase in value overtime.

However, you still need to buy smart — each neighborhood is different and you want to make a decision on a neighborhood that will age well.

Q:  Should I put a deadline on an offer?

This is a tough question to answer and really depends on the specific situation of the home you are bidding on. 

In more competitive neighborhoods, most sellers want to give their home full market exposure to get the highest price possible. That means sellers tend to have their own deadline for any and all offers.

 If a seller is not anticipating multiple offers or perhaps just wants less inconvenience or a need for a quick sale, moving quickly with an offer and having a deadline for a response can be a useful strategy.  

If you are going to put in a deadline, make sure to give one that allows for enough time for the seller to respond, but not long enough for another offer to swoop in.

Again, it depends on the particular situation.  We have found that 8-12 working hours (not sleeping hours) is often a good time period for a deadline.  Often times, this could mean avoiding a bidding war.

But you’ll have to make it worth the seller’s while to want to take their home off the market quickly—perhaps a higher price than asking and favorable terms such as no or short contingency periods.

In some situations, a deadline will not make the seller respond, so be prepared for that outcome as well!

Q: Is it worth it to find something faster when interest rates are low?

No!  Don’t let interest rates dictate your time to buy a home.  We are still in a period of historically low interest rates and we don’t expect them to spike any time soon.

A slight increase in your interest rate is not going to make the home you want unaffordable.  And, just like buying and selling other investments, such as stock, timing the market is never a good idea. 

Buy and sell when the time is right for you. Speak with an expert about perhaps which month is best, but always go based on your own timeline and schedule.

One thing I know for sure—there will always be homes to buy. And, when interest rates rise a lot, that often times leads to a slight cooling of prices.

Q:  How do I get a good deal?

Good question and one I focus on for each and every one of my clients! 

The one and only way to make sure you are getting good deal is to look at the specific neighborhood you are buying in and compare your home to what has sold over the last six months to a year. 

There will be a range in price depending on specific location (for example, backing up to a busy street will sell for less) and condition (just renovated will sell for more).  Compare the home you want to buy with what has sold recently to make sure you are not overpaying. 

Also get information from your agent about whether it’s a sellers’ market or a buyers’ market, and make your offer accordingly.  The longer a home sits on the market, the more likely you can get a lower price. 

And please keep this in mind—just because something is “cheap” doesn’t mean it’s a good deal.  Be sure not to make this crucial mistake!

Q:  How Do I Buy and Sell at The Same Time?

This is the number one question my buyer’s have.  First, let me say, it can be done!   Depending on your particular financial situation and the market, you may need to sell your current home first before buying your next home. Don’t fret! I’ve got specific strategies and options we can discuss to make this happen. 

You might qualify to buy your new home first before selling your current home. For those of you who can be approved for this, congrats! That means you can spend time looking for a home before putting your home the market.

That said, however, there are still things we need to do while you are looking for your next home to make sure you can sell your current home quickly. I’ll go over what you need to do when and everything you need to know to make sure you don’t end up with two homes at the same time (at least for too long).

Yes, there is a lot to figure out, but I’ve done this for clients many times and I can walk you through the process, so you understand what needs to happen when and how you are going to pull off buying and selling at the same time, fixing up your current home, moving and staying sane all at the same time. It is possible and I can show you how!

Next week is one of our most favorite articles — Is the “Paradox of Choice” Derailing Your Home Search? We tell you the secrets from this book that can help you focus on making a decision and not being overwhelmed by too many choices. You don’t want to miss it!