Real Estate Buying Tips from Fred Eckert
Use a Realtor and if not paying cash, get a good lender. Get pre-approved for a loan! Buy when others aren’t buying!
Get information about the property you are interested in from Chicago Title! Online registration at www.chicagotitle.com in the upper right. Once registered, you can also get our free application that gives you property profiles on the fly!
We can tell you when the owners bought it, what they paid, who they are, how much they may owe to lenders, whether a spouse died etc.!
Find out, if you can, the seller’s motivation. Are they taking a California Proposition 60 Property Tax Transfer, had the Death of Spouse (survivors have two years to claim the $500,000 exemption), Need Long Term Care, Needing a Handicapped Friendly Home, Downsizing, taking a 1031 Exchange, a Job Change, Medical reasons etc.!
If you see the property, write the owners a note telling them how much you like the property! If you have children and they like the home, have them write a short note to the sellers too! If you visit the property, consider sending a thank you note and maybe flowers to the owners, thanking them for holding their home open for you to see!
Look at the photos, awards, and military or sports connections and mention these in your note or comments!
Get sales comparables from your Realtor and from Chicago Title (we have FSBO sales too)!
Is the lot splittable (more value later)? Is the home movable (ask me about Yanking the Land/Severed Improvements)? What is the zoning of your desired home and others nearby?
Overlook cosmetic issues! Get a Home Inspection! Check the schools, the walkability, and the ease of access, the neighborhood, the neighbors, and more!
Does the home comply with state law…smoke detectors, water heater safety straps, radon tested, carbon monoxide detectors.
Has the home been inspected for mold? What is the crime rate? Are services you require nearby?
Think about the future. Is it a single story and if not, where could an elevator go. Is it handicapped friendly? Could you install a stair chair? In California, ask me about proposition 110 and a request for reasonable consideration!
You should discuss Buyer’s Remorse (paid too much, wrong house etc.) as you will experience it!
Consider buying with and option or a lease purchase, if you are not sure of the home, property, schools, neighbors etc.!
Is there a Notice of Default on the home? Will the property be part of a 1031 Exchange?
Use www.chicagotitlesd.com and its consumer information links to help answer questions, like how to hold title, who pays for what etc., and get our 45 page comprehensive Buyer’s Guide!
Even if the home is not listed, you can make an offer!
Don’t have emotion when buying, only when you have succeeded in buying!
Buyers will probably have Buyer’s remorse as they think they have paid too much, bought in the wrong neighborhood etc. Make sure to discuss this with buyers!
Use the Chicago Agent free application to see the Seller’s full closing costs.
Knowing their closing costs, allows you to consider offering to pay for some of the closing costs, instead of increasing your offer price! Consider paying for a home warranty or some repairs!
Consider getting a binder from the title company (usually 10% of the basic rate)…just in case you have to sell within a few years!
Use the PRO/CON method of making sure the purchase is right for you! List the pros and cons of whatever endeavor you are wanting to do and only after listing all possible ones, make a decision.
