"I really wanted that house!"

I met with this woman a while ago to talk about selling her house because she wanted to buy a new one. She told me she didn’t want a buyer’s agent to help with the purchase of her next house, she just wanted someone to help her sell her house. She was pretty adamant about it so I didn’t push it.

I ran into her yesterday and asked about the house she had wanted to buy and if that was going well. She said that someone else outbid her. She was really disappointed. I’m good with the perspective that everything happens for a reason. And even after I said that, she still had this look of, “but I really wanted that house.”

I’ve seen this happen many times. The way it works is that a Seller agrees to pay a commission for the sale of their house. No matter who sells it. For example (and this is just an example), if the Seller agrees to a 6% commission and there is no other agent involved in the sale, the listing agent earns 6% of the sales price. If a Buyer’s agent represents the buyer and helps them buy the home, the Listing agent gets 3% and the Buyer’s agent gets 3%.

Many buyers that don’t understand this think they can save 3% by not working with an agent. And that is what this woman did. She thought she would be fine on her own and so she hired an attorney to draft the offer.  As a Listing agent I receive a lot of offers to present to my Seller clients. You can quickly tell when an agent is experienced in the way they write their offer. As a Buyer client, this is something you just have to trust. You have to trust that the offer will be drafted in a way that not only protects you but puts you in the best position to get that house. You are writing the offer in hopes of getting it accepted right? So if you are writing the offer to get it accepted, make it a great offer. I love attorney’s, don’t misread this post. I love my attorney and I love working with attorney’s. It brings a new challenge to the transaction. But just like you have to trust a Real Estate agent to write a great offer on your behalf, you have to trust the attorney to do the same.

I’m easily frustrated when I hear stories about buyers not getting the house they wanted and I just have to wonder what went wrong in the negotiating process. Of course, it isn’t always the agents (or attorney’s) ability to write a good offer because the terms of the offer are ultimately determined  by the Buyer. If the Buyer insists on writing the offer for 25% less than the asking price and they know there is another offer on the table, well then, hello?! The Buyer is not going to get that house.  

The way you negotiate an offer depends on a lot of things. It takes a professional to assess these things and recommend terms and verbiage that will protect you, the Buyer, and at the same time put you in the best position possible to get that offer accepted. It is called strategy.

What do we look at when we are strategizing?

Days on the market, Sellers motivation to sell (if we can find that out), how much they purchased the home for, how long the Sellers have owned it, analyzing the comparables, looking at the competition, taking into account the condition, features, unique aspects of the home, how many offers they’ve already received and finding out why they didn’t get accepted. These are just some of the factors that go into creating a strategy on behalf of our Buyers.

Buying a home is as stressful as you make it. Take the right steps and you can avoid frustration, rejected offers, marital turmoil (seriously). If you are at the beginning stages, make sure to read the post called, Before you Start Touring Homes, and you’ll set yourself up for success. And talk to a Realtor that you can trust and ask all the questions you have in the world. Because you aren’t expected to know this stuff. As agents, we learn through experience. Even when we sell 100 homes a year, we are always learning. Take advantage of our experience. Join our team in buying your next house and if you still aren’t sure, read what our clients have to say.

Congratulations to the new owners of a lovely Madison condo on the west side.

- 2 bdrm, 1 bath, 1316 sq. ft.
- 1/2 duplex, 1 car attached garage
- 32 yrs old.

This unique 1/2 duplex has no condo fees, no pet restrictions & all the benefits of your own home. Low yard maintenance, (small & surrounded by mature trees) and a long list of new updates: furnace, central air, appliances, vinyl siding, water softener, washer/dryer & more! Open floor plan features vaulted ceilings, fireplace in living room, large bedrooms and lots of closet space. 

JUST SOLD! 19 Mondale Court - Madison, WI

This condo was listed for 169,900 and sold for $158,000 in 20 days.

Sometimes I get a call from a buyer that wants to go look at a home (one would hope that I would get calls like that!) and as I  ask some basic questions I quickly realize that this potential buyer is very early in their home buying process. Asking questions is the key to being an good Realtor and asking the right questions is the key to being an effective Realtor. Before you start calling around to request showings please consider the following in your process: 

- Research and gather information about neighborhoods and schools. Ask your friends and co-workers what they like and dislike about where they live to give you a clear picture of a neighborhoods features. And narrowing down your search based on a school district is important to your search too (if relevant). Don’t wait until you fall in love with a home to then find out that the school district isn’t good fit for your family. You can search homes in specific school districts on our website. This is also an important time to understand agency and the difference between a Buyer’s Agent and a Seller’s (or Listing) Agent and what that means in your search.

- Discuss and determine what you want beforehand - how many bedrooms, approximate square footage, preferred neighborhoods, energy efficient and green homes, and how much you can afford to spend. A buyer consultation (usually a no obligation appointment) is crucial to a successful search. One of the most common complaints is, “My Realtor showed me homes that weren’t a good fit. S/he just didn’t listen to my needs.” And that is why this meeting is so important. Sitting down at a table with all parties openly talking ensures your Realtor will understand what is important to you in your next home.

- Make sure your credit report is accurate. There would be nothing worse than finding the perfect house and missing your chance to make an offer because there’s an error on your credit history that places you in an unfavorable light with a lender.

- Get pre-approved for a mortgage before you begin looking at homes. Not only will this give you an exact price range for your purchase, but pre-approved will add muscle to your offer. This is when you can start conversations with lenders but don’t feel like you have to work with the lender you get pre-approved with. There are a lot of great lenders out there with different programs that you’ll want to understand clearly. And what you are pre-approved for isn’t necessarily what you want to spend. Use our mortgage calculator to help you figure out what you’re monthly payment will be.

- Keep in mind that there’s no such thing as the “perfect” home. Instead, set priorities. Determine what may be more important on your list. For example you may want a 2 car garage in a specific area where many homes only have a one car garage. You may have to decide if the garage or the neighborhood is more important to you. Our team of buyer specialists are specially trained to help you with these decisions and give you important input on what will help you sell later too.

We can help and we want to help. Contact us to schedule a free and no obligation buyer consultation to see if we are a good fit for you: office@thealvaradogroup.com, 608-251-6600. You can find us on Facebook too!