Sandra Howell

In years past I always recommended that buyers get “prequalified” 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 “prequalified” 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! Oftentimes unknown problems surface! Some of the problems I’ve seen include recorded judgments, child support 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 client's bank account long enough, etc.

So the way to make a strong offer today is to get “pre-approved”. This happens AFTER all information has been checked and verified. You are actually APPROVED for the loan; the only loose end is the appraisal on the property you want to buy. 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.

Let’s pretend that we go out looking for the perfect house for you. We find it and you love it! 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’s 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! So you see, you paid more for the house than you could have because of the contingency.

Now you have to sell your existing house, and in a hurry! Otherwise you lose the dream 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 TENS OF THOUSANDS of dollars. I always recommend that you sell first, then buy.

STOP CALLING ADS! Whether you decide to work with me or not, pick an agent you feel comfortable with and stay with that agent if he or she is doing the job. Agents work on commission and are paid by the seller, NOT THE BUYER! I charge NOTHING for my time when I work for you. To get 100% effort from me, I have to know that you value and appreciate my work on your behalf. 

Many agents are now demanding that buyers sign a contract so they can be sure of their loyalty. I believe it’s better to have a relationship built on trust, and if I don’t perform for you, you should be free to go elsewhere. So I don’t require a signed agreement, but I do need a verbal commitment to do my best.

Did you know that many homes are sold WITHOUT A SIGN ever going up or an AD EVER BEING PUT IN THE PAPER? These “great deals” go to those people who are committed to working with their agent. When the agent hears of a great buy, who is he going to call? The client WHO IS COMMITTED TO HIM, not someone who just called on an ad. So to get the best buy on a property, I always recommend that you decide on an agent and stick with him or her.