Wow… talk about a confusing process. You take an average person that decides…Now is the time to buy a home. This is not an easy decision. It is influenced by the “American Dream(?). This person wants information. They boot up and head out on the good old information super highway. A lot of them start at Google. One of the first places listed is HUD’s website. Seems like as good a place as any to start. HUD lists 9 steps to buying a home.
Nine steps to buying a home
- Figure out how much you can afford
- Know your rights
- Shop for a loan
- Learn about homebuying programs
- Shop for a home
- Make an offer
- Get a home inspection
- Shop for homeowners insurance
- Sign papers
It lists all the steps. It gives direction. It really goes into great detail. In some cases it is accurate. For the first step, it does advise that you need to talk to a lender. The second step mentions fair housing and respa. As you can see the third step sends you to a lender and by step 4 you are advised to get a real estate agent.
Good advice ? … Not exactly.
Remember, even when you think you are doing what needs to be done, you may not be grasping the instructions. Sometimes words actually confuse the directions.
The same tool that our potential buyer uses to get information usually gives incomplete or misleading information. We are all not alike. Everyone comes to this vast suppository of information with different backgrounds, education and beliefs. The information may seem relevant and pertinent, but is it saying what you are perceiving?
Not Exactly …
Really? Here are some examples…
The price of the home listed on the website is the price I can pay to buy the home.
Not exactly. The price listed only represents what the agent entered into the multiple listing service. It is the price that the seller agreed to publicize. The final sale price can be more or less or the same as the listed price. If you offer the list price, your offer may not be accepted. They do not have to sell the home to you just because you offered list price. The seller has the right to review how you plan to pay and the seller has the right to accept another offer instead of yours. The competing offer does not have to be equal to or more than your offer. It just has to be a more acceptable offer. The seller makes that decision.
The amount of money someone paid for a home is a factor in what can be offered.
Not exactly. To begin with, it is a bit presumptuous to look at the price a person paid for a home and determine how much you think they deserve to profit on the sale. There usually is no way that a buyer or buyer’s agent can know how the home was financed, what equity lines may have been taken, etc. Further more, the price of the home should reflect market value and not what the buyer thinks the seller should “make” on the sale. I have never met anyone that uses this logic in determining an offer that would like the same logic used in dealing with them.
Properties labeled bank owned or REO will be handled in the same fashion as other types of sales.
Not exactly. Banks make use of every single loop hole they can find to avoid following State laws regarding the sale of property. They do not disclose any information and they do not ask the listing agent to determine if there is any information about the property they are selling. The sale of these types of property is usually “as-is where-is”. Laws regarding lead paint issues are ignored. Some lenders will correct problems identified by an appraiser. Most of these sales are handled by firms that represent several banks and they are over whelmed with listings. The best phrase regarding these sales is the old latin “caveat emptor” let the “buyer beware”.
These are but a few of the Not Exactly situations that function in the world of home buying. It is best to keep an open mind and a relationship with a real estate agent that is more concerned with you than his wallet. The truth may not be what you want to hear, but the truth is what you need to hear.
If you do not have a good agent, well you can call Lourdes Tudela or John MacArtbur at 301-509-5111. They will always listen and separate fact from fiction. Experience the difference.