Navigating Home Buying

1. Waiving Contingencies

Every contract has several "contigencies" built in, whether it's a home inspection during option period, the appraisal during financing, or deed restrictions. In this market, you're most likely hearing of buyers waiving appraisal contingencies. This can only be possible on conventional financing options and when a buyer chooses to waive the appraisal contingency, they are accepting to purchase the property at their asking price even if their loan cannot finance the full amount due to a low appraisal of the home.

Some buyers are opting to waive home inspections and accepting a home in "as-is" condition. The home inspection is critical in making a sound real estate investment as it may uncover underlying issues that could be costly to you as the buyer in the long run.

Regardless of which contingencies you're waiving, make sure you're working with the right REALTOR® (hint: me) to navigate contract terms and ensure you are in the position to offer the waivers you are proposing. You don't want to put yourself in a costly situation, so make sure you understand all the risks before signing any waivers!

2. Streamline House-Hunting

With homes only staying on the market an average of 10 days, you no longer have the luxury to wait around before coming to a decision. Chances are, if you LOVE a home, someone else does too and the offers will be pouring in.

I have a robust on-boarding process I walk you through during the initial consultation that helps you define your needs in a home. Once you have a solid understanding of your goals with home-buying, you'll be able to know at first walk through if a home makes it onto your "to-offer or not-to-offer" list. I have found this approach to be extremely helpful with my past clients in reducing the time it takes to decide on a home and place an offer at a competitive pace!

3. Determine your Max Offer

There are several approaches to determine the top of your price range. While most go with the maximum amount approved by their lender, others focus on a maximum amount they would be comfortable with paying towards a mortgage on a monthly basis. However you approach your max, in a competitive market you want to look at homes below your max.

For example, in a market where homes are selling for an average 20K above asking, you want to look at homes at least 20K below your max capacity to be able to make a competitive offer. Your REALTOR® (hint: me) will look up market data and tell you the average going rate for the market you're searching in.

4. Ready to Compromise?

As much as we all dislike having to compromise, the reality of it is, you may have to in this market. But don't worry, the onboarding consultation mentioned above will help you determine what things you're willing to compromise on so you're not caught in a time-sensitive decision at the last minute and end up with buyers remorse over compromising on the wrong items on your list.

Common items buyers compromise on: Location, Make-ready state of home, the number of bathrooms, or the size of the yard.

5. Information Overload

Pre-Approval, Mortgage, FHA, VA, Property taxes, HOA, Deed Restrictions, Inspections, Appraisals!???

Just starting the home buying journey can be overbearing. This is a HUGE financial investment, and you want to make sure you're making the right decision. Simply google-ing how to buy a home will send you down a rabbit-hole of information overload. That's where an expert comes in. Choose a REALTOR® that has the education (beyond licensing) and skills to best help you navigate all the information out there.

With the ease of access to internet, it's easy for anyone to find a home online, but only an industry expert can help you navigate the contract to make that dream home a reality for you.

Neha Sutrave Wooten

REALTOR® | Top Producer

Endorsed by: C2EX Realtors Commitment to Excellence

Designations: At Home With Diversity, Graduate, Realtor Institute