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Step 4: Property Research Once we've targeted the "right" home, and you've decided to make an offer, you will probably breathe a sigh of relief thinking that the hard part is over. In a sense, you're right. I, on the other hand, start preparing for the most intensive part of my job: knuckling down to perform some serious research on this home to help bring the reality of this home and seller's situation into focus for you. Once I've accomplished that, it is my job to prepare you for the arduous negotiation phase and shepherd us through to closing.
What Should I Know About this Home?
For each home, there is a wealth of information available from a variety of sources if you know where to look for it. I treat each client's purchase as if it were my own, and never cut corners on research so that you can make an educated determination as to the value and cost of ownership of the home.
Some of the relevant information I will gather for your consideration includes:
• tax information, including exemptions taken and reassessments
• zoning codes
• MLS histories (previous listings and/or sales)
• existing mortgage information (which may give insight to seller's motivations)
• utility costs
• prior sale information (MLS or FSBO)
• property manager's contact information (condos, homeowners' associations)
• special assessment information (condos, homeowners' associations)
• local school information
• local amentities information
All Systems Go!
If, after reviewing all the available information, everything looks good and you're ready to place an offer, then I will go one step further and provide you with a full-blown Comparative Market Analysis, wherein I will discuss the (positive and negative) aspects of the property and compare it side-by-side with similar properties, both recently sold and active. In addition, I will provide you with local area statistics so you can see how this home compares to the "average" local home. I will offer a suggested Market Value range, which will rely heavily both on objective information (prior sales, currently available comparables) and my more subjective understanding of the current local market conditions, the targeted home's condition and any other special circumstances that I foresee might affect our negotiations. I will suggest a basic negotiation strategy, including a recommended starting figure.
In addition, I will provide to you a written estimate of all your expected closing costs, including local transfer taxes (if any), attorney's fees, inspection fees, etc., as well as an estimate of your monthly costs of ownership. I will talk with the listing agent and secure for us any information I can about the seller's situation, motivation, etc. so that we can make a strong offer that will capture the seller's attention and make them want to work with us. I will compile all this information into a portable package for you, and wherever possible we will review it at length together so that I may answer your questions.
With all this information at hand, you will be better prepared than perhaps every other buyer in the market to successfully negotiate a strong contract (that is unlikely to unravel) on your dream home!
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