You have heard the phrase, “Buyer Beware!”  You may not have heard the phrase, “Buyer, Be Ready.”  I want to introduce this not-so-familiar phrase to you.

Here is a quick story.  Last week I heard about a buyer client who had found the perfect home to buy.  They had been looking for quite a while and were excited when they finally made their mind up to purchase this particular home.  They were quite deflated when they found out the home had just gone under contract.  The perfect home had slipped through their hands. 

There’s more to the story.  These buyers could have had an opportunity to offer on the home, but they were not ready.  They did not have their current home sold; they did not have a solid pre-approval letter to give the seller’s agent (which was a requirement under the terms related to this home as it was a foreclosure); they did not have a good understanding of their purchase and closing costs as they had not had good communcation with their agent and lender; they were not ready to make an offer to purchase their dream home.

A few years back, selling a home was easier than it is now.  Buying a home was easier then as well.  There are quite a few pitfalls that a buyer can fall into as they move toward the purchase of a home.  So, in my opinion the phrase that best decribes a home buyer’s position in today’s real estate market is “Buyer, Be Ready!”

What does it mean for a buyer to be ready?  Hear are a few things, among others, that should place a buyer in the “ready-to-buy” position:

1. Pick Your REALTOR® – Your relationship between you and your REALTOR® is a critical one.   The experience of the REALTOR® you choose and their ability to help you through the purchase process is important.  You will need to be able to communicate clearly with your agent and trust their advice.  Very few real estate transactions are easy right now.  Sometimes timing is everything.  You might need your agent to quickly submit an offer for you in a multuple offer situation.  You will need your REALTOR® to negotiate on your behalf and this negotiation could be the difference in your getting the perfect home or continuing to look.  The right REALTOR® will be fully engaged in your real estate transaction and should have the ability to affect the outcome on your behalf.
2. Pick Your Lender Representative – Meet with a few lender representatives.  Determine the right lender rep to work with  based on recommendations from your REALTOR® and others you trust.  It is also important to mention here that there are quite  a few”unique” loans available for home buyers now.  Depending on your situation and the location and type of home you are planning to buy, you might qualify for a program that allows 100% financing or some other special incentives like money to improve your new home.  Working with a lender rep who is completely knowledgeable about your situation and the loan programs that are available is critical to be able to take advantage of the great situation that might be available for you right now. 
3. Understand and Pick Your Loan Program (Get a Pre-approval Letter) – Have your lender rep check your credit, understand your circumstances and find the right loan program for you.  Get a complete understanding of your loan costs.  This step will be important to structuring your purchase offer to take full advantage of the way your loan program works.  Get a pre-approval letter.  Most sellers now require proof of the buyer’s ability to get financing before they respond to an offer.  This could be critical to getting the best deal possible as you may need to convince the seller of the strength of your ability to buy compared to another buyer
4. Stay in Regular Contact with Your REALTOR® and Lender Rep – The housing market can change quickly.  The perfect home might not be available today, but could be available tomorrow.  So, to be ready means “to be ready” for that perfect home to come available.  Your REALTOR® and lender representative will need to work with you quickly to get certain things done to make sure your offer is accepted by the seller.
5. Keep Your Finances in Order – After you have received your pre-approval letter, don’t do anything that will change your ability to get the loan.  Examples are purchase a car with financing, having late payments, and changing your job without discussing it with your lender rep.