Tip #17 in our series of 70 ways to save money when buying a house is to never tell your agent the top price you will pay for a house.
In our last tip, I explained to you the importance of having your own real estate agent on your side. And if you are going to but property you should have an agent on your side, especially if it does not cost you anything.
But, your agent is human, and there is no way to tell if he/she has your best interest in mind. The higher the price of the house you buy, and the more you pay, the larger the commission for your agent. So if the agent was selfish, she would try to get you to pay as much as possible. She wants you to buy the most expensive house you looked at because if you buy it, it will be the largest commission for her.
By pushing you just a little bit towards the more expensive house, she will make a few hundred dollars more. Not bad for a few seconds of work.
Or say you are negotiating with the sellers, and your agent knows you can pay more than you are offering. Will she be able to go in to the sellers and really sell them on the offer? Probably not.
That is why I suggest you never tell your agent or any real estate agent how much you can pay for a property.
Your agent will ask you how much you can afford, but do not tell. Give a range. Tell him,
We would be comfortable paying between 225- 250 thousand for a house.
There is no telling if your agent will keep your information confidential. By law, they are supposed to, but it is very hard to prove, and you do not want to take that chance. By giving them a range they have all the information they need to do their job well. They can show you all the houses that meet your needs in the price range you gave him. Then, if the agent shows you a house that is above your price range, you might want to think about getting another agent.
After giving a solid range, there is no reason an agent should show you a house that is above your range, unless there were not enough homes in your range. But if you do some homework, you should easily be able to choose a range that you will be comfortable with and that has plenty of homes to choose from.
By keeping this information to your self you protect yourself from the human tendencies that get us all in trouble. Realtors are human, and you should remember this.
By giving your agent a range of prices of homes you want to see, you are making it easier on the realtor to narrow down homes to show you and you can save yourself a boatload of money at the same time. The best thing is, that you would never know if your realtor did something that made you pay more. Do not let the realtor screw it up for you. Keep this information to yourself.
Archive for the ‘Home Tips’ Category
Selling a Fixer Upper Home – Tips to Help Make it Happen
Monday, April 12th, 2010When you buy a piece of property in the hope of fixing it up and later selling it, there are certain tips you should take into account. Buying a fixer upper can be extremely profitable if you know what you are doing and are able to do so the right way.
Certainly the notion of picking up quick, under-priced home deals and selling them at incredible profits has high appeal and is driven by TV spots that promote similar investments. But for most beginners who are not necessarily adept at spotting good opportunities and then marketing their renovated versions, attention to the finer points of the process are imperative.
When someone is looking at your home for the first time as a potential buyer, the sale can be won or lost within the first fifteen minutes. You want to give the buyer something that really stands out and can make a statement among the other homes in the neighborhood.
Buyers usually know right away if they are going to love or hate it, so do your best to sway them in your direction. This means thinking long and hard about what you are going to say in your “sales pitch.” Make sure you describe all the important information about the home that would concern them. This includes any extra information involving the neighborhood and surrounding areas.
It is important to flaunt all the updates you have made and amenities added to the home. If the home is near great schools or trendy neighborhoods, let them know. You want them to be able to see themselves living in that home, so be sure to show off all the great selling features such as a new bathroom, updated kitchen, or brand new master suite.
Be prepared to answer any questions they throw at you, even about the design of the home or important utility issues. One of the most negligent things you can do as a seller is not know the details of your home from top to bottom – do all the research you need to sell it quickly and efficiently. Even if you have never lived in the home that you fixed up, you should convey the value of such a great piece of property and that you love and cherish it.
Another crucial tip is to choose the right real estate agent. If you have never bought a fixer upper to sell a couple of months later, then this is pertinent to making sure everything goes smoothly.
Ask the important questions of your agent before selecting the person, such as how long they have worked in the field and if they have ever sold a fixer upper. You also want to verify the agent has sold a considerable number of homes and actually has the skill to do so.
Finally, the last tip to selling a fixer upper is invest the effort and funds to make the home worth selling. Along with the right cosmetic touches and a great real estate agent, you’ve got to do work in areas of the home that are most important to buyers.