Imagine you are in the Old West. Two buyer’s want to buy the same home but only one can be the rightful owner. The only way to settle this? An old fashioned duel!

The buyer’s take their paces, spurs clinging as they walk. They turn to face one another with hands hovering above their six shooters. Anticipation fills the air. That wild west music is playing somewhere for whatever reason. We are about to find out who is prepared to buy the home and who is just pretending.

In the old west (and in real estate), there are two kinds of people; the quick (also known as the prepared) and the dead (the unprepared, the pretenders). Here are the three steps you must take to make sure you are prepared to buy the perfect home when it comes along.

First, dress like these guys. Intimidation is key to victory…

…Just kidding. Don’t do that.

Step one (for real) – Know the Cost

Before you ever step foot into a home, arm yourself with knowledge. Meet with a lender to help you understand your financial situation. Once you speak to a lender and thoroughly understand all of the costs associated with purchasing a home (purchase price, earnest money, down payment, borrowed amount, closing costs, inspection, appraisal, monthly payment, etc.) your lender will issue a prequalification letter. That letter is your weapon. Now you are armed for the duel!

Step two – Strategize

Since having a weapon isn’t any good unless you know how to use it, it’s time for some target practice. This is where your Realtor is going to help you understand what your money can buy you in the current market. He or She will also help you understand what makes a good offer. This is extremely important since the buyer who brings the highest and most appealing offer to the seller is going to win.

For example, if a buyer needs closing costs paid for by the seller (closing costs are fixed costs that must be paid for in cash, at closing), they are telling the seller they want them to contribute roughly 3% of the purchase price back to the buyer at closing. If the buyer offered the asking price of $200,000 but needs closing costs, they are really asking the seller to reduce their overall net by $6,000 (200,000 x .03 = 6,000). The buyer feels they gave a “full price offer” but the seller doesn’t see things the same way. This is just one of many factors your Realtor can help you understand so you can put together a winning offer.

Step three – The Duel

Now that you have your weapon (prequalification) and you know how to use it (having a strategy and understanding the market) you can now go shopping for a home! Once you and your Realtor find the perfect home, it’s time to execute your plan. Remember, the best homes are sold the quickest. Get armed with knowledge, get a plan and pull the trigger when you find the perfect home.

Contact me at Cory@corysellshomes.com for a customized buying strategy that is 100% guaranteed to get you the home you have been dreaming about.