REAL ESTATE
by Jim Coleman, REALTOR®
TEN POINTS FOR BUYERS TO MAKE BIG MOVES IN THIS MARKET
Buyers are thrilled with this market. That is, unless they need to sell before buying. Even then, with careful planning and wise action with sound counsel from competent professionals and practitioners, a smart move can be achieved by evaluating the best sale possible and then capitalizing on the margin when buying.
As this column has done in previous issues, it is very important to be careful and wise in personally assessing one's financial capacity based on credit standing and available cash. Do not get swept away and sucked into purchases that may later lead to negative cash flow or poor value potential, or that will put the owner in a burdensome position of stress that can't be maintained or one of living above one's means.
Having given this caution, here are some points to ponder: (1) Choose a good representative who knows the market and has the skill and experience to advocate and negotiate to your benefit. (2) Know your limits for monthly payments based on your personal budget and resources for real estate investing without putting your personal or family operation at risk. (3) Consider the options available in this market with the vast inventory that exists, but don't be fickle and fake yourself out of a smart move by procrastinating a good choice, for even in this market, the best deals are still the ones that are going. (4) Use a check list system to remain objective while considering options available. (5) Be sure you have a definite loan approval, excepting the appraisal, not just pre-qualification, if financing is applicable, before you begin the search process. (6) If multiple parties have to approve the purchase, keep them properly informed and in an immediate stand-by mode in order to move quickly when you are ready to make the offer; be sure your representative knows all the parties. (7) Use a coupon approach with vendors and suppliers if fix-up, remodeling or redecorating is contemplated, for in this market, everyone is being competitive to try to get the business. (8) Prepare yourself and be ready to move quickly when the closing and possession schedules are set. (9) Work with your representative and be aggressive with offers to get what is important to you and still have a win-win result with the seller. (10) Stay on top of the transaction; if conditions change or can't be met, be sure timely action is taken with your representative to modify the agreement with the proper counter-offer or addenda to not lose control, risk the earnest money deposit or jeopardize the transaction.
While many consumers are looking for freebies from the government to bail them out or stabilize their personal and household operations, there are many who have great opportunities available due to big price reductions and the drop in value the market has experienced. To use an expression, make hay while the sun shines. In other words, be prudent but take advantage of a wonderful serving from a menu that can be both pleasing to the eye and very tasty. You can position yourself for asset preservation and stimulation and smart growth in your personal financial portfolio.
St. George REALTOR® Jim Coleman is Associate Broker and Partner/Owner of ERA Brokers Consolidated. He Specializes in Residential, Investment and Commercial Real Estate, holding National Designations of Accredited Buyers Representative (ABR), Certified Residential Specialist (CRS), Resort and Second Home Property Specialist (RSPS) and Seniors Real Estate Specialist (SRES). You can contact him by e-mail at Jim@RealtorJimC.com. Call: (435) 674-0600; or write: Jim Coleman, 201 East St. George Boulevard, St. George, Utah 84770. This and other columns are available at www.RealtorJimC.com/articles.