Frisco Texas Residential

Read this before you sign on the dotted-line...

1. Get “Pre-Approved” - Not “Pre-Qualified!"

Do you want to get the best property you can for the least amount of money? Then make sure you are in the strongest negotiating position possible. Price is only one element in the negotiations, and not necessarily the most important one. Often other terms, such as the strength of the buyer or the length of escrow, are critical to a seller.


I'm sure you've heard that it is recommended that buyers get “pre-qualified” by a lender. This means that you spend a few minutes on the phone with a lender who asks you a few questions. Based on the answers, the lender pronounces you “pre-qualified” and issues a certificate that you can show to a seller. Sellers are aware that such certificates are WORTHLESS, and here’s why! None of the information has been verified!

Many times unknown problems can come to the surface! Some of the problems I’ve seen include recorded judgments, alimony payments due, glitches on the credit report due to any number of reasons both accurately and inaccurately, down payments that have not been in the clients’ bank account long enough, etc.

So the way to make the strongest offer today is to get “pre-approved”. This happens AFTER all information has been checked and verified. You are actually APPROVED for the loan and the only loose end is the appraisal on the property. This process takes anywhere from a few days to a few weeks depending on your situation. It’s VERY POWERFUL and a weapon I recommend all my clients have in their negotiating arsenal.

2. Sell Your Property First, Then Buy the House

If you have a house to sell, let me help you sell it before selecting a house to buy! Contingency sales aren’t nearly as strong as one that comes in with a ready, willing and able buyer. Consider this scenario: You’ve found the perfect house - now you have to go make an offer to the seller. You want the seller to reduce the price and wait until you sell your house. The seller figures that this is a risky deal, since he might pass up a buyer who DOESN’T have to sell a house while he’s waiting for you. So he says OK, he’ll do the contingency but it has to be a full price offer! You have now paid more for the house than you could have because of the contingency, and you have to sell your existing house in a hurry! Otherwise you lose the house! So to sell quickly you might take an offer that’s lower than if you had more time. The bottom line is that buying before selling might cost you THOUSANDS of dollars.

If you’re concerned that there is not a house on the market for you, then go on a window-shopping trip. You can identify possible houses and locations without falling in love with a specific house. If you feel confident after that then put your house on the market.

Another tactic is to make the sale ‘’subject to seller finding suitable housing’’. Adding this phrase to the listing means that WHEN YOU DO FIND A BUYER, you will have some time to find the new place. If you don’t find anything to your liking, you don’t have to sell your present home.

3. Play the Game of Nines

Before house hunting, make a list of 9 things you want in the new place. Then make a list of 9 things you don’t want. You can use this list as a guide to rate each property that you see. The one with the biggest score wins! This helps avoid confusion and keeps things in perspective when you’re comparing dozens of homes.

When house hunting, keep in mind the difference between ‘’STYLE AND SUBSTANCE’’. The SUBSTANCE are things that cannot be changed such as the location, view, size of lot, noise in the area, school district, and floor plan. The STYLE represents easily changed surface finishes like carpet, wallpaper, color, and window coverings. Buy the house with good SUBSTANCE, because the STYLE can always be changed to match your tastes. I always recommend that you imagine each house as if it were vacant.

Consider each house on its underlying merits, not the seller’s decorating skills.

4. Don’t Be Pushed Into Any House

It seems like I repeat this phrase at least 100 times a day, "I DO NOT SELL HOUSES!!!!! HOUSES SELL THEMSELVES". It has become a personal mantra. When viewing homes, they either work for you or they don't. You either like it or you don't. Your agent should show you everything available that meets your requirements, but don’t make a decision on a house until you feel confident that you’ve seen enough to pick the best one that fits your needs. If your agent is pressuring you into making a decision, GET A NEW AGENT!


5. Let Your Agent Do The Negotiating!

Newspaper and real estate magazine advertisements are created specifically to make the phone ring! Sales people need to generate leads. There’s nothing wrong with it. However, the person on the other line, or the new home sales rep, or the seller, or the buyer, or whoever, ARE MOST CONCERNED WITH THEIR INTERESTS AND NOT YOURS!

For this reason, you should be very careful when reading ads and talking to sales people. The most important thing you can do is have someone on your side looking out for your best interests. Your agent should be skilled and thoroughly know the market in your area. They should be trained to negotiate professionally. A good agent will be able to negotiate a much better deal because they know the industry from the inside and realistic market values. Relax and let them do their job!

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