STEP 4: LOOK AT HOMES 

Over 6 million homes are sold each year leaving buyers with many

options as well as challenges in finding the home to fulfill their

needs. The real estate market is very complex because the stock of

homes for sale is always in flux. It is important to work the an agent

that is experienced in the community and is well informed about the

choices in preferred markets. 

What Are You Looking For? 

There is more to a house than just bedrooms and bathrooms. Take for

example three properties - each with three bedrooms, three bathrooms

and all the same price. Each individual house may be dramatically

different when it comes to design, lot sizes, tax costs, interior

dimensions, and commuting distances. Just like every person is

different and has different needs. When listing the features that are

important to you consider such things as amenities (a grand kitchen or

lagoon pool), pricing, location, size and house style (ranch style,

modern, colonial). You also need to think about your priorities. What

features are most important to you? Are you will to sacrifice one to

get another? And last but not least, keep in mind what your needs will

be in the future. Will you be needing a larger home in the future? If

so, maybe you should consider buying the larger home now instead of

having to move in the future. 

Where Should You Look? 

Every neighborhood and community has its own unique distinctiveness

and personality. One community may be well known for its easy access to

the interstate while the other is known for its historical nature or

easy access to downtown. Miamirealtyfinder.com offers a wide variety of

homes to choose from along with buyer representation services. 

How Do You Find a House? 

There are a few different routes you can take when looking for a home.

Some buyers choose to search web sites such as Miamirealtyfinders.com

while others simply take suggestions from their realtors. Either way,

it is important to narrow your search. A simple way to refine your

search is by taking basic measures such as minimizing your search to a

certain area and affordability. Keep a file with information on each

home that you've seen and the features that stand out to you the most. 

How to Choose a Neighborhood 

Investigate local conditions when researching a neighborhood. Some

factors may be more important to you than others like: 

  The crime rate 

  Property values 

  Quality of schools 

  Future construction 

  Traffic 

  Proximity to schools, prisons, the interstate, airports, shops,

hospitals, employment, 

  Beaches, parks, theaters, and cultural and activity centers 

Neighborhood Search Strategies 

For most first-time buyers financial resources are limited so it is

wise to maximize your home purchase location by combining some of these

strategies into your neighborhood search: 

-Look for a home that is just out of the city, if commuting is a

concern, limit your search to communities known for good public

transportation. 

-A condominium or a co-op may be a good idea for you rather than a

house. This makes it possible to purchase a home in a choice

neighborhood that you might not otherwise be able to afford. 

House - Hunting Tips 

Do your homework - These days, consumers have much more access to

information about market trends, homes on the market, neighborhood

statistics and recent home sales prices. This information is easy to

obtain on the Web, do the research, educated yourself. 

Make a list - You will save yourself time and money if you make a list

ahead of time of what it is you want. Concentrate on the features most

important to you and your family. Start a list about your likes and

dislikes in your current home and start from there. 

Location counts - Location really is an important factor in purchase a

new home. How far are you willing to commute on a daily basis to

school, work or shopping centers? An undesirable location can ruin your

dreams of a perfect home and be a bad choice as far as reselling in the

future years. 

Get a preapproved mortgage - Unless you are a financial expert you can

only guess on how much you can afford on a mortgage payment each month.

 Speak to a lender or mortgage broker to give you letter on how much

you can afford to spend each month. 

Wear comfortable clothing and sturdy shoes - House - hunting can be an

exhausting chore after a while. If you are planning on spending the

whole afternoon touring home then prepare yourself with comfortable

apparel. 

Use a checklist - Don't try to remember every detail of every house.

Make a checklist and keep notes on the features you liked most and

least about the property. 

Home Purchase Consideration 

After the neighborhood is chosen the next choice is the number of

bedrooms. Once you begin to view homes keep the following in mind: 

It is harder to resell a one bedroom condo than it is a two bedroom

condo. 

Two-bedroom/one bath single houses have less appreciation value

because they generally are less appealing than three or more bedrooms. 

Homes that are the most attractive (from the street appearance) are

easier to resell. 

If you are considering reselling, don't buy the most expensive or most

enormous house. The best investment, generally, is normally found in a

less expensive moderately sized home. 

When You Have Found the Right Home 

When you finally decide on the buying process it is wise to act

promptly. It is quite possible that someone else put in an offer (that

could be accepted) while you are "thinking on it overnight". This is

particularly true if the house in newly listed or underpriced. 

The Basics of Making an Offer 

A written proposal is the foundation of a real estate transaction 

Oral promises are not legally binding in reference to real estate so

it is very important to enter into a written contract once you've

written out a proposal. The price and terms and conditions of the

purchase are all included in the proposal. If the sellers agree to help

with the closing costs then be sure to include this in your written

offer and the final contract - or you may not be able to collect on it

later. Your realtor will be able to answer any of your questions you

have while filling out multiple forms which include Residential

Purchase Agreements that change continuously with the law. 

For Your Home 

If you are not using a real estate agent, be reminded that you will

need to draw up a purchase offer that corresponds with both state and

local laws. Remember - state laws vary and certain provisions may be

required in your community. The seller's realtor (and sometimes the

buyer's realtor along with the seller's) will present a signed offer to

the seller. Although the parties' lawyers can draw up sales contracts

in some situations. 

What the Offer Contains 

If accepted, the submitted purchase offer will become a binding sales

contract (also known as an earnest money agreement, purchase agreement,

or deposit receipt). Consequently, it is mandatory that this

"blueprint" contains all the items pertinent to the final sale such as: 

Sale price 

Seller's promise to provide clear title of ownership 

Address and description of property 

Terms 

Type of deed to be given 

A time limit to expiration 

A last minute walk-thru by buyer before closing 

State-specific clauses 

Target date for closing 

Method by which bills and utilities are to be prorated between buyer

and seller (fuel, rents, water bills real estate taxes, etc.) 

Amount of earnest money deposit accompanying the offer - is it cash,

check or promissory note? How will it be returned if offer is declined

or kept as damages if party backs out 

Contingencies which are listed below: 

It is likely your offer will state "this offer is contingent upon (or

subject to) a certain event" - if this is the case you are saying that

you will only go through with the purchase if that event occurs. 

  2 Common Contingencies 

A positive report by a home inspector with ten days after the

acceptance of the offer 

If the loan of the buyer cannot be found from the lending institution 

It is very important that every detail is added properly to the

written contract. 

Negotiating Tips: 

You are in a particularly strong bargaining position if. 

You are pre-approved for a loan 

You are an all cash buyer 

You are not bound to selling a current home before you can buy 

Because of this you may have more leverage in negotiating some

discount from the listed price. Try to find out why the house is being

sold and if the seller is being pressured into selling it. If the

seller is divorcing they may want out quickly and every month the house

remains vacant means more expenses for the seller! 

Earnest Money 

Earnest money is the term used for the deposit given when making an

offer on a house. A "good faith" deposit of cash is a good idea when

dealing with a written agreement. A mediator such as the realtor or a

lawyer will hold the cash deposit, this will later become part of your

deposit. 

Buyers: The Seller's Response to Your Offer 

Once the seller signs and returns the written offer it becomes a firm

contract, unconditionally. However, if the seller declines the offer

she/he cannot later change her/mind and hold you to it. The seller may

send you a written counteroffer with a change in the sale price or the

proposed selling date if they are not happy with it. Once you receive

the counteroffer you are able to reject it or make your own

counteroffer. This can go back and forth unconditionally and is not a

binding contract until one party finally signs and acceptance of the

other side's proposal. 

Withdrawing an Offer 

Under most circumstances you can take back an offer up until the

moment it is accepted. If this is the case, you will want to consult

with a lawyer who is experienced in these types of real estate matters

before revoking your offer. You want to prevent being sued for damages

the seller may have suffered by relying on your actions and you don't

want to lose your earnest money deposit. 

Sellers: Calculating Your Net Proceeds 

Once you receive your written offer, you can do one of three things:

Accept it exactly the way it reads, refuse it, or make a counteroffer

to the buyer with the changes that best suit your needs. When reviewing

the purchase order calculate the amount of profit you are left with

when the transaction is complete. For example, if you have two offers

at once even though one may have a lower sale price you would make more

than if you were to pay points to the buyer's lending institution. When

trying to calculate your proceeds from the proposed purchase price you

can subtract: 

Broker's commission 

Legal costs (attorney, escrow agent) 

Payoff amount of present mortgage (if any) 

Transfer taxes 

Unpaid property taxes and water bills 

Cost of survey, termite inspection, buyer's closing costs, repairs,

etc..if in written contract 

Any liens (equity loans, judgments) 

An escrow account may be maintained by your present mortgage lender

into which you deposit money to be used for property tax bills and

homeowner's insurance premiums. Just keep in mind that you will receive

a refund left in that account which will add to your proceeds. 

For Sellers: Counteroffers 

Any change you make in a counteroffer can put you at risk of losing

that chance to sell. Keep in mind that if you don't accept the purchase

offer from the potential buyer exactly as it stands you may be at risk.

You and the buyer can come to an agreement on who pays for: 

Buyer's broker 

Buyer's closing costs 

Points to the buyer's lender 

Survey 

Termite inspection 

Repairs required by the lender 

Home protection policy