The Real Estate Browser Volume 9, Issue 11 - Page 26

www.LynchburgRealEstateBrowser.com Volume 9 Number 11 – Say you saw it in The Real Estate Browser of Lynchburg — 25 Fail #3: Waiving Formalities Because You’re So in Love With the House down on a 30-year mortgage, that additional $2,000 will add just $8 a month to your payment. Don’t be so blinded by house love that you do something silly like skip some of the formalities of home buying, such as the home inspection or the appraisal, in an effort to close the deal. If you can swing it — maybe you can cut a small thing out of your budget each month — it could be worth it. Those steps, and others like a termite or septic inspection, are known as contingencies. They’re there to protect you from ending up with a six-fig- ure money pit. Imagine how quickly the house-honeymoon would end if you found a termite colony or that the identical house across the street sold for much less? Besides, if you’re taking out a mortgage, your lender won’t let you skip an appraisal because they don’t want to loan money on a house that isn’t worth the loan amount. So even if you want to make it easy for the seller, your lender may stop you. There are other ways to sweeten your offer and get that house: • Pay some of the seller’s closing costs. • Offer a fast close. If this is your first house, speed is an ace up your sleeve because you can move faster than someone who can’t buy a new house until they sell the old one (another type of contingency). And remember, while there’s a lot of emotion tied up in choosing a house, it’s still a business deal. Fail #4: Getting Hung Up On a Few Grand You offered $198,000. The seller won’t budge from $200,000. Before you walk away, consider this: Two grand is a lot of money, but in the house-buying world it’s not so much. At an interest rate of 4%, with 20% Fail #5: Folding Because the Inspection Turned Up Issues A good home inspection is going to turn up something. Usually several somethings. That’s good. It means the inspector is doing their job. It’s a rare day when a home passes inspection with no prob- lem at all. Plus, many things that turn up on an inspection are easily handled. You can ask the seller to do the repairs or knock some off the price so you can pay for repairs. And while some problems may seem scary at first, like a roof leak or plumbing problem, they’re almost always fixable and negotiable. Fail #6: Offering Less Because the Decor is Hideous The faux-Tiffany swag lamp and trippy orange- and-brown wallpaper make your eyes itch. So you’re planning on offering less — way less. Before you do that, know the market. If it’s a seller’s market, your offer may be seen as an insult especially if the home’s in good shape. And just like that, you’ve lost your dream home. When you’re ready to make that offer, look past the little stuff that you can easily change, and focus your negotiations on what matters, like the location and the bones of the house.