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What to Avoid When Buying a House

By Edited Jul 4, 2014 0 0

How to Be An Ideal House Buyer

Be A Desirable House Buyer

Occasionally you can get a house even when you don't make the best offer. The house seller might want to sell to somebody who looks certain to complete the deal in the soonest possible time rather than to someone who, despite giving a higher bid, might possibly run into problems. Make it known you're a serious shopper. How do you do this?

•           Avoid any contingency that you must sell your house first. If you already own a home, try selling it fist before you go house hunting. If you do not own a house, you are way ahead of those who must sell. A seller chooses what is in effect a "cash" deal instead of risking a buyer who might scrap a deal when his own house does not sell.

house for sale(108526)

•           Be prepared to exhibit that you are financially able to buy a house. It would be wise that buyers get all their cash and credit information in order before going on a house hunting spree. Having your financial records in hand, you can give the seller an impression that you're not an underfinanced fledgling who would want to buy his or her house but does not know if he can afford it.

•           A lot of deals fall flat due to a buyer's inability to qualify for a loan. Be sure you pre-clear your financing. Go to a lender early. Lenders will not agree to a mortgage till they see the house, but they can show that you qualify for a mortgage up to a particular amount. Some lenders do offer pre-approval packages. But be mindful of those that charge a high fee even if you don't buy a house.

•           Never make impossible demands. One house hunter had trouble finding a house because of one uncompromising demand: The basement had to be at least 40 feet by 23 1/2 feet. He was building his own airplane and required that much space to work on it. Asking for hard-to-find features may cost you more.

•           Do avoid provisions that will delay the sale. For instance, some buyers first would like to consult an astrologer. The seller is not always willing to wait.

•           Get a backup contract. If someone else puts a contract on a house that does not necessarily signify that they are willing to buy it. Once you agree to a backup contract, you are next in line if the first deal does not materialize. And because you know the seller has already lost a buyer, you know he or she would be willing to negotiate new details.

•           Inquire about a "kick-out clause." Meaning, if a seller has just accepted a contract on a house that you want, ask if the sale was dependent on the buyer selling his own home. Some contracts have a clause stating that if a seller accepts another contract without a home-sale contingency, the first buyer has 48 hours to sign a new contract without the contingency or the home can be sold to the second buyer.

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