Part 3...... 3. Sure, I Can Buy It; How Much Do You Want? –Qualifying yourself The above may seem simple or elementary, but understand… there is a lot of property offered that will fit your dream, be eye-popping and mouthwatering, but may be priced above your means. I know this from my own experience! I’ve viewed property that kept me in a fever for days, leaving me tossing and turning in bed trying to figure out a way to buy. Ultimately, I had to move on and not waste the seller’s time. The good thing: Tennessee is blessed with lots of ―pretty‖ property. Evaluate your financial situation and establish a price range you will be comfortable with. Consult your accountant and/or visit with your local banker to get a feel for his/her thoughts. I hear this statement fairly often: ―I’ve got my property up for sale for X number of dollars and when it sells, I can afford this property.‖ That’s great, but what if your property does not sell? Then what? Or, what if it sells for less then your asking price? I know it still boils down to what comes first, the chicken or the egg! Let me say here, too. There have been times that I’ve bought above my ability to afford and came out smelling like a rose. If, through your research, you find a property that is way below market price and you can quickly sell, you might take a chance - especially if you have other assets that you could liquidate to cover your purchase if things quickly turned sour. I’ll have to admit that during the late 1970’s, when I thought I was God’s gift to real estate, I made a couple of stupid decisions that left me making interest payments on interest notes! Does anyone remember 21% interest at the bank? I’ve sweated bullets a few times over the past five years, also. A buyer’s broker - a licensed agent who represents your interest, not the seller’s - is another good asset who can help evaluate your threshold for pain. Part of their service is to prequalify you before you visit properties. Questions buyer agents find themselves asking about you are: Is this prospect serious about buying land and can he afford it? Has this potential buyer done his homework and does he know what he (and his family) want? If your real estate agent doesn’t qualify you, he/she may waste an incredible amount of time and energy. Having your own exclusive agent who only works for you can save you from a lot of pitfalls and embarrassment. Buyer’s brokers split the seller-paid commission with the seller’s broker, but their loyalty and fiduciary responsibilities are owed to you, the buyer.
Posted on: Thu, 19 Sep 2013 23:19:34 +0000
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