Tips All Buyers Need to Know

Dewayne:

Watch to hear what every buyer needs to know.

Interviewer:       

Hi, Kirk. Hi, Dewayne. Thanks again for another episode in your series of 60 lessons in 60 years. So today we’re going to discuss your lesson for buyers. How does a buyer know if they should buy a property or not?

Kirk:  

Dewayne has a great message for this one.

Dewayne: 

Yeah, so I always tell buyers that real estate, it’s all about trade offs. If you find a property that fits 80% of your needs or checks off 80% of your boxes, that’s the property that you buy. You’re never going to find the property that fits 100% of your needs. You’re going to find the best floor plan, wrong location. So write out what your non-negotiables are and then once you find a home that fits 80% that’s the home you buy.

Kirk:  

The 80% rule.

Dewayne:  

Yes.

Interviewer:  

All right. What about the offer is most important?

Dewayne:  

Well, besides price, you want to provide the seller with deal certainty. So don’t riddle the contract with unnecessary or redundant contingencies. Make it as simple and clean as possible.

Kirk:    

And also our earnest monies. You want a nice deposit down. Many times you’re competing with another offer. They’re going to take another offer with a bigger deposit. The rule is don’t be stingy with your deposit. Sometimes you have to because you’re going to do like a loan that’s 95%. Well, that’s still a big deposit down. You want them to know you’re serious.

Dewayne:   

I mean, we’ve seen deals where we’ve had two offers, same price, so they’re identical. So the seller just picks which one has the more money down or the more deal certainty.

Kirk:     

Yeah, that’s the reason.

Interviewer:  

Okay. And what are some mistakes that you see buyers make often?

Dewayne:     

I mean, we do our best to guide buyers, but sometimes they kind of go off and do things on their own or they don’t want to take the advice that we give them.

Kirk:     

Well, for instance, they’ll do a job change in the middle of buying a house. If you do a career change, you’re not going to go alone. If you go from an engineer to an engineer, it’s okay, but if you switch careers, it’s not okay.

Dewayne:  

Or if you change like your debt to income ratios, because those are very important whenever a lender’s pre-qualifying you. So if you go out and you’re like, “Oh my new house is on the water, I’m going to buy a jet ski.” And you’ve put that on your credit card, or pay another loan and someone else checks your credit, that could prohibit you from getting financing.

Kirk:    

So one of the things is after you start the loan process, you don’t want to be pulling your credit. Like if you’re buying some other items, you just want to pull it that one time.

Interviewer:  

That’s it. That’s a lot of information. So thank you very much. Those are great. That’s great advice. What can we learn from you next time?

Kirk:  

Next week we’re going to talk about home warranties. Join us next week.

If you would like to see more from our “60 Lessons in 60 Years” web series, see below: