Wisconsin Real Estate

The 5 Top Secrets to Buying the Best Wisconsin Home for Your Money

1. Get "Pre-Approved" Not "Pre-Qualified!"

Would you like to purchase the best Wisconsin home you can afford for the least amount of money? Then you must make sure you are in the strongest negotiating position possible. Price is only one factor in the negotiations of buying a home, and not necessarily the most important one. Often other terms, such as the buyer’s credit or the length of the escrow, are critical to a seller.

Buyers should get "pre-qualified" by a lender. This basically means that you spend a few minutes on the phone with a lender who asks you several questions, and conducts a credit check. Based on your answers, the lender declares you "pre-qualified" and issues a certificate that you can show to a willing seller. Sellers are aware that such certificates are WORTHLESS, and there’s a simply reason as to why! None of the information you discussed with the lender has even been verified!

Many times unknown problems arise! Some of the problems that can arise include recorded judgments against the buyer, buyer’s overdue alimony payments, any glitches on the credit report due to any number of reasons both accurately or inaccurately, down payments that have not been in the clients' bank account long enough, etc.

So the only way to make the strongest offer today is to get "pre-approved." This happens AFTER all your information has been checked and verified by the lender. You are actually APPROVED for the loan and the only thing left to do is have the property appraised. The property appraisal usually can take anywhere from a few days to a few weeks depending on your situation, and your property appraiser. Being “Pre-Approved” is VERY POWERFUL and an influential weapon to have in the buyer’s negotiating arsenal.

2. Sell Your Wisconsin Property First, then Buy the House

A very important rule to remember is if you have a house to sell, sell it before choosing a house to buy! Contingency sales aren't nearly as strong as the buyer that comes in ready, willing and able to purchase the property. Think about this scenario: You've found the perfect house. Now you just have to make an offer to the seller, but you are trying to sell your house at the same time. You want the seller to reduce the purchase price and wait until you sell your house. The seller realizes that this is a risky deal, since he might pass up a buyer who DOESN'T have to sell a house while he's waiting for you. So he says OK, he'll do the contingency but it has to be a full price offer! You have now paid more for the house than you would have if you didn’t have a house to sell because of the contingency, and you have to sell your existing house in a hurry! Otherwise you lose the perfect house! Thus, in order to sell your home quickly you might take an offer that's lower than if you had more time to sell. The bottom line is that buying before selling might cost you THOUSANDS of dollars.

If you're concerned that there is not a house on the market that is perfect for you, then go on a window-shopping trip. You can identify possible houses and locations without falling in love with a specific house. If you still feel confident after the trip, then put your house on the market.

Another approach is to make the sale ''subject to seller finding suitable housing.'' Adding this phrase to the property listing means that WHEN YOU DO FIND A BUYER, you will have reasonable time to find a new place. And if you don't find anything to your liking, then you don't have to sell your present home.

3. Play the Game of Nines

Before any house hunting outing, make sure you make a list of things you would like in your new place, and then make a list of the things you don't want. You can use this list as a guide to rate each property that you visit. And to make it easy, the one with the biggest score wins! This helps avoid any confusion and helps you to keep things in perspective when you're comparing dozens of homes.

When you are house hunting, keep in mind the difference between ''STYLE AND SUBSTANCE.'' The SUBSTANCE are things that cannot be changed, such as the location, view, size of the lot, noise in the area, the school district, and floor plan. The STYLE represents easily changed surface finishes like carpet, wallpaper, color, and window coverings. Always buy the house with good SUBSTANCE, because the STYLE can always be changed to match your tastes. And always consider each house on its underlying merits, not the seller's decor.

4. Don't Be Pushed Into Any House

Your Wisconsin real estate agent should show you everything that’s available on the market that meets your needs and wishes. Don't make any rash decisions on a house until you feel that you've seen enough to pick the best one.

A decade ago, homes were selling quickly, usually a few days after listing. In that kind of market, real estate agents advised their clients to make an offer ON THE SPOT if they liked the house. That was good advice at the time, but with today’s housing markets there isn't this sense of urgency any longer. Of course unless a home is drastically under priced in which case you'll know.

Also, don't forget to check out the SCHOOL DISTRICTS in the area you're considering in purchasing a home. Information is available on every school; such as class sizes, % of students that go on to college, SAT scores, etc.

5. Stop Calling Ads!

On your real estate search realize that ads are created to make the phone ring! Many of the homes listed have some shortcoming that's not mentioned in the ad at all, such as traffic noise, power lines, or litigation in the community. Remember what's not mentioned in the ad is usually more important than what is listed.

Always be very careful when reading property listing ads, and remember that the person writing the ad is representing the seller and not you as the buyer. The most important thing you can do is have someone on your side looking out for your best interests. Your own real estate agent will critique the property with an eye towards how well it meets your needs and will point out any drawbacks you should know about. So always be choosy when deciding on a real estate agent. You should choose an agent that you feel comfortable with, that understands your need and wants in a property. You can enlist the services of that agent as a buyer's broker, then you become a client with all the rights, benefits, and privileges created by this agency relationship, and you're no longer just a shopper. But beware, once you sign an agency agreement with your real estate agent, then you are no longer able to shop around with other real estate agents.

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