If you are thinking of buying a single family home, condominium or investment property in Massachusetts, here are a few tips to help you get started:
- Take a few moments to discuss what you're looking for with
your spouse or partner before you start setting up appointments to look
at properties. Make a list of "must have" features together, then
discuss other "would like, but can live without" features. After you've
looked at a dozen or so properties, re-evaluate your criteria. Often
priorities shift with time.
- Have a realistic idea of
how much you can afford before you start looking (most lenders will
pre-qualify you for free). Not only will this save time, but will also
avoid needless disappointment on everyone's part.
- Don't
sign a contract with an agent that locks you into looking with him or
her, or guarantees them a commission even if you find the house
yourself! Specify instead that a commission will be paid only if you
buy a property shown to you by that agent. This enables you to look with
others, and also at For-Sale-By-Owner properties, at your own convenience.
- Don't bring an agent with you to look at FSBO properties, or bring them
into the picture when it's time to draw up a contract, UNLESS you are
willing to pay their commission through either a higher sales price, or
out of your own pocket. Otherwise, you may risk losing the house. (note:
Contact your local for sale by owner service for help if you aren't sure of the process)
- If you find the house you want to buy before you've sold your home, and
the seller is reluctant to sign a contract with you with the
contingency that you sell your home first, you may draw up a contract
that allows the seller to continue marketing and advertising the
property yet gives you the "first right of refusal" should they receive
another offer. This way you will be notified immediately if the seller
has another offer, giving you an opportunity to re-offer if necessary.
Another option is to put a non-refundable deposit on the property. This
shows the sellers that you are serious about buying their property.
- If you sell your house before finding a home you want to buy, be sure
your sales contract is contingent upon you, the seller, finding suitable
housing!! We have heard several stories of people frantic to find a
home under pressure, and even having to rent after the closing, because
they sold first. Remember, the seller is legally bound to sell once the
contract is signed.
- When presenting an offer, be
courteous and respectful of the sellers. In general, avoid criticizing
the property with statements like "we don't care for the new carpeting,
and therefore will have to replace it". This will not justify a lower
offer and may possibly insult the sellers, decreasing your chances of
their accepting your offer.
- If you feel the property
may be overpriced, yet the seller refuses a lower offer: Make your offer
contingent upon the property appraising for the selling price or
higher.
- Request that you be permitted to walk-through
the house (shortly before closing) after the furniture is removed to
make sure that some of the home's faults weren't covered with furniture, rugs, or wall coverings. It is far easier to request compensation for
necessary repair work before the house is sold than afterwards.
- Request that the seller complete a property disclosure or disclaimer
form (not required when selling "by owner" in Massachusetts) before you make an offer. Agent-listed properties carry no guarantees, and it is the seller who is
legally bound to be truthful in reporting the condition of the property.
We recommend that any major deficiencies in the home are reported
to the buyer regardless of the form being utilized. Also, be aware that
in some states the disclosure/disclaimer form is not required and that
real estate documents will vary from state to state.
- Make the time frame of your offer short (24 hours or less) so the seller
has less time to "shop the bid" among other interested parties, or to
accept another offer. Also, don't make the deadline time at midnight
unless you usually are awake at that time!
- If you
don't know much about building construction, don't worry. Simply make
your offer contingent upon the property passing a professional home
inspection. This is also an excellent way to become more familiar with
the upkeep needs of your future home.
- Put everything in writing. Your sales contract should spell out whether the washer and dryer stay, etc.
Good luck and happy house hunting!
