By now, you probably have seen a "Carvana" commercial - how you can shop for and buy a car simply by browsing the internet ( www.youtube.com/watch?v=wToxrHzVpxU ). So, why not apply the same approach to buying a home?
Some obvious differences should make you think twice:
SURPRISES. New houses are not built in a factory like most cars are (although I can share some innovative ideas that may surprise you...!) Even though a new house has a "new car smell", consistent quality and managing surprises should be one of your foremost concerns.
ASSET VALUE. Cars, while an asset, are a depreciating asset at best and are considered personal property. They can be easily bought and sold with a one page title. Homes are real property, and prior ownership of the land, the buildings and improvements can become a significant issue. While there is no guarantee that a house will increase in value, it is likely one of the largest investments you will make in your lifetime, and deserves professional advice. Importantly for the home Buyer, did you know that using a professional Realtor does not increase your cost of buying (or leasing) the home?
PREPARATION. Got a job? Most often you can find a dealer who will sell you a car - if you are willing to make the payments. Your credit-worthiness may determine where and how you can buy that car. With a home purchase, it is important to know your credit-worthiness (not just your FICO score), BEFORE you go to Open Houses or start shopping with a professional Realtor. When you start shopping, you will probably see a house that you can envision being your family's home - and what a disappointment it will be to delay that home purchase because of credit snags.
MSRP. Unlike the car industry with consistent products, there is no reliable reference that you can use to determine a home's "ideal" value. By definition, every real property is not movable - the combination of building and land is unique. There is no "Manufacturer's Suggested Retail Price" on real estate. Two houses next door to each other may have unique property value based on location, condition, features etc. Also, not all builders or home sellers are equally motivated. As with any negotiation, it is imperative that you have a negotiator that is working for you who is aware of the unique circumstances of each home situation.
INTERNET. There is more data on the internet than ever. However, a small portion of that actually represents information. For examples, houses that show as being available for sale on the internet may already be under contract or even sold. By the same token, properties that show as not available may simply not be picked up yet by some of the more popular fishing sites - Trulia, Zillow, Realtor.com, etc. Also, property descriptions are often outdated or outright wrong - square footage, number of bedrooms or bathrooms, etc. Think of the internet like a store's catalog - many items may be out of stock, delayed in shipment, descriptions may be inaccurate, etc.
I could go on, but you get the idea. Get to know a good Realtor. One who will consistently represent your best interests. Before, during and after you list your home. Before, during and after you purchase your new home. Someone who cares about you and your family, more than a commission check. (Yes, there are commissions, but they should be earned.)
We know everybody needs a roof over their family's heads. Call or contact me if I can help you in this lifelong process.
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