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Hello, person of taste and distinction. This is a Tampa Bay Real Estate Insider Newsletter. Created to educate, inform, and empower you to take charge of your real estate or investment journey.
Imagine it’s a hot summer day in Tampa, Florida. You are relatively new to this booming town. You sit at the local restaurant, trying to cool down after a long day of visiting open houses around the city. It’s a third week of you trying to find a home for your family, but you are already burned out. You feel like you are spreading yourself thin, and all your efforts are for nothing. When you find the neighborhood you like, you can’t seem to find the house that fits your family’s needs and vice versa. Pictures you see online give you hope, but once you come to the property, they are just not the same.
You don’t want to extend the lease on your current home; you feel it’s overpriced, and you are smarter than that – You want to build equity and own your home, but this process is exhausting, and with family and work responsibilities, you are at a breaking point. You don’t even want to think about what needs to be done once you do find a house you like – offers, negotiation, closing, it’s all very foreign to you. Thoughts of quitting on home search altogether cross your mind. You take another sip of a cold beer and take a deep breath.
You produce a business card out of your pocket – you got it from a realtor you met at a networking event. It’s been a while back, but you clearly remember his dapper appearance, impressive beard, and enthusiasm for helping people. He mentioned a free buyer consultation with no strings attached. You don’t hesitate; you start dialing his number immediately, hoping he can help you in your search.
HOME BUYING PROCESS – THE SHORT OF IT
The home-buying process can be divided into several stages, which will be covered in a two-part newsletter. In this one, I will point out several methods I use and advise when working with buyers.
Every client and transaction is different, but roughly, it can go like this:
- HIRE A REALTOR
- Get pre-approved and establish a budget
- Determine your needs and wants, including the geographical area
- Search and learn about real estate
- Make an offer
- Negotiate
- Home inspection and appraisal
- Closing
- After-closing – dealing with buyer remorse
Many real estate professionals say the first step is to get pre-qualified for the loan. I recommend hiring a realtor first. In most cases, you only have fiscal responsibility to your realtor once you close the deal on a property you like, so there is no harm in hiring an excellent realtor right away – especially if you are new to home buying or buying in a new area/city/state.
Realtors are your resource for everything you need to successfully close the transaction and move into your new home, including contacts to lenders that will get you pre-qualified.
BUYER CONSULTATION
Pre-production proved pivotal for my filmmaking career, just as buyer consultation has become indispensable for both my clients and me in the realm of real estate. It shocks me to know how many realtors overlook this crucial step.
On average, I dedicate around four hours to each buyer consultation, often dividing it into two sessions. This is where I delve into understanding my clients’ motivations, beyond just their surface preferences.
During these consultations, I meticulously craft their search criteria, noting their observations and preferences while also facilitating connections with lenders and other necessary vendors.
We meticulously scrutinize every aspect and criteria, constructing a search funnel that ensures my clients do not overlook any opportunities.
Buyer consultation is a vital preparatory phase. It will save time and money in the long run, as well as reduce undue stress throughout the process.
THERE IS NO SUCH A THING AS FOREVER HOME
Although I’m a fan of HGTV, I can’t fully subscribe to their idea of a “forever home.” It’s like believing in Santa Claus, a charming but unrealistic concept. The reality is, that perfection is elusive, especially in real estate. Rather than chasing an unattainable ideal, it’s more pragmatic to seek a home that’s a 7 or 8 out of 10 and fits your current needs and lifestyle for the foreseeable future, say 5 to 15 years. Flexibility is key, as both your circumstances and preferences will evolve over time.
It’s crucial to distinguish between superficial flaws, like an unattractive paint job, and fundamental issues, such as insufficient space or functional deficiencies. While the former can often be easily addressed, the latter may pose more significant challenges. To navigate this process effectively, I advise my clients to compile a list categorizing their requirements into “Must have,” “Nice to have,” and “Dealbreaker” criteria. This methodical approach helps us identify properties that align closely with their needs and aspirations, aiming for that solid 8 out of 10 ratings.
CAST A BROADER NET
Navigating the complexities of school districts and addressing your children’s various needs can be daunting. However, broadening your search geographically can significantly expand your horizons, presenting a multitude of opportunities. This approach offers more options and affords you a comprehensive understanding of the unique characteristics each neighborhood brings to the table for your family.
I always say, “The map is not the territory.” Dedicate ample time to exploring different areas firsthand. This investment in thorough scouting lays the groundwork for future success. Think of it as akin to the “supermarket test”—by immersing yourself in various neighborhoods, you gain invaluable insights into their dynamics, enabling you to make informed decisions tailored to your family’s needs and aspirations.
LOOK ABOVE YOUR BUDGET
Yes, you read that right! Expand your search by adding properties above the price range. Many properties are just overpriced, sitting on the market forever, dying a death by a thousand price cuts. Those are probably listed by sellers who didn’t read my previous newsletter.
As properties linger on the market, they tend to attract less interest, making sellers more inclined to negotiate. For buyers, this presents a dual advantage: reduced likelihood of multiple offer scenarios and the opportunity for savvy realtors to leverage the extended time on the market to secure a better deal. This strategy could potentially land you in a home far beyond what you initially envisioned.
WAITING GAME
Here’s a somewhat unpopular perspective: WAIT! DO NOT RUSH! What do I mean by that?
Ideally, you’ll embark on your home search while comfortably housed, with a timeline of your own making. This timeline shouldn’t be dictated by your landlord, an urgent situation, or a lack of alternatives.
Searching on your terms opens you up to learn more about the market and be coolheaded in negotiations.
CONCLUSIONS
If you have an Alpha personality, you might feel a bit hesitant about relinquishing control of the process. However, it’s important to understand that a Realtor’s role is precisely to manage and guide the process while empowering you and allowing you to retain full decision-making authority. This symbiotic relationship is designed to deliver optimal results.
In the upcoming issue of the Tampa Bay Real Estate Insider newsletter, you’ll find more insights on writing offers and what to anticipate during real estate negotiations.
In the meantime, if you or someone you know is considering buying or selling real estate, call me right away, and let’s chat!
