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My Process Of Working With San Fernando Valley Buyers    

Welcome

Thank you for viewing my page that describes how I work with buyers.  If you are still not sure if you should use the services of a Realtor, my page entitle Why Use A Realtor will give you valuable information.  I’m sure you realize the purchase of a home may be the largest financial investment you ever make.  It’s critical that a homebuyer be familiar with the basic purchasing process prior to searching for their dream home.  Knowledge is the key to making the search easier and more enjoyable when purchasing real estate.  In addition, an informed buyer is less likely to encounter the many pitfalls that may lead to serious problems.  I suggest you read my document on common buyer mistakes.

 It is important that a homebuyer works with a real estate agent that enjoys working with buyers and is very familiar with the San Fernando Valley. This may sound strange.  The truth is that many agents only concentrate on getting listings and working with sellers. Over the years I have honed a process that has proven to be very effective for finding ideal homes in the San Fernando Valley for my buyers.  You may want to view my client testimonial page and see how it worked for some recent clients. 

 First Things First 

• The first step of the process involves getting pre-approved or at least pre-qualified for a specific real estate mortgage amount.  Pre-qualification means the lender has run a credit report and reviewed the loan application.  Based on these factors, the lender estimates what the buyer would qualify for without verifying all the information in the application.  Pre–approval on the other hand means all the information has been verified and the lender has agreed to make the loan subject only to the title report and appraisal of the new property.  Pre-approval carries more weight than pre-qualification.  This will put you in a stronger bargaining position when it comes to negotiating with the seller.  You may choose any lender you wish.  If you need a referral of an excellent lender with competitive mortgage rates, E-Mail or call me at 818.986.3913 and I will have one contact you.  There have been many recent changes in underwriting guidelines. This has made it possible for people with less than ideal financial status to obtain home loans at competitive rates.
  
  Another important reason to talk with a lender before purchasing is that a seller will not take your offer seriously unless a pre-approval or pre-qualification letter accompanies it.  It is not uncommon to have multiple offers on Valley homes.  Without a letter from a lender, you are dead in the water.

Let The Search Begin

• Now comes the fun part!  When working with a new client, it is very important for me to determine what they are looking for in a home.  The first task is determining what community or communities of the San Fernando Valley they would like to live in.  I ask new clients to give me a detailed description of the features they absolutely need.  After that, I ask them to rank the most important amenities they would like their new home to have.  Once I have an idea of where they want to live and what type of house they would like, I can determine if their budget is in line with their desires.  If the budget will allow me to show them homes that meet their criteria, were off to the races.  Sometimes a client describes a $700,000 house when we know their maximum purchase price cannot exceed $500,000.  At this point I will review the criteria they gave me.  I will make suggestions that will allow them to get as close as possible to their dream home on a limited budget.  I am often surprised how quickly we can come up with options that will satisfy the homebuyers and allow us to begin our search of homes.
  
  
• At this point, I will personally view all the active listings in the San Fernando Valley that meet the criteria set forth by the homebuyers. This is important to note.  Many agents will only look at the multiple listing sheets and decide to show their clients the houses that sound nice.  If you have ever read a newspaper ad for a house that sounded nice and then seen it in person only to find it is a dive, you know the importance of an agent previewing real estate first.  After viewing the homes, I will select the top five or six homes to show my buyers at their convenience.
  
  

• After showing homebuyers property for the first time, I get a much better idea of their true tastes and desires.  From this point on, I am constantly looking for homes that I feel my clients would like to live in.  In fact, I search the multiple listing service computer database a couple times a day to catch new listings as they are just being uploaded.  Many Realtors wait for the paper copy of the MLS to arrive at their office to see what’s new.  There may be a three or four-day lag between the time a home was uploaded and the time the paper copy arrives at their office.  I want to get my home buyers out to the new listings as soon as possible!  I often E-mail my clients information sheets on homes as soon as they are put into our MLS database.

Making An Offer

• Upon finding a home my clients would like to make an offer on, I will make a comparative market analysis.  Basically it is like a mini real estate appraisal.  I look for all the homes similar to our subject property that are located close by and have sold recently.  I will also look for similar active listings.  Once the information has been compiled, I will review it with my homebuyers.  From this data we will determine what the true market value of the house is.  If my clients decide to buy the home, we will sit down and write an offer on the property.  Our goal is to get this home on their terms for as low a price as possible.  I always go over the different negotiating strategies with my clients and give as much advise as I can.  This offer will spell out how much the buyer is willing to pay for the home, what type of financing the buyer plans to obtain, how long an escrow period the purchaser would like and a myriad of other details important in the purchase of real estate.  I believe it is essential to spend a good deal of time educating my clients about the contract and emphasizing the importance of all the clauses. Our company only uses California Association Of Realtors (CAR) contract forms. These forms are the standard throughout California and provide buyers with the highest degree of protection.
  
  
  

• This brings us to the negotiation phase.  Ideally I will try to set up a time to meet with the seller and the real estate listing agent in person.  I say this because many Realtors will just FAX the offer to the other agent and hope for the best.  I believe my buyers have a far greater chance of obtaining their terms as set forth in the offer if I can be there in person and tell the sellers about the people that want to buy their home, explain the offer, overcome objections, build rapport, and answer any questions the seller may have.  This is a pivotal point in the purchasing process and if you are a buyer, it helps greatly to have someone in your corner pressing to get the offer accepted on your terms.  I believe my eighteen years experience selling real estate gives me the ability to always be tactful and yet put forth compelling reasons for the seller to accept the offer.  If the seller does not accept the offer, the seller will usually issue a counter offer.  The counter offer essentially says the seller will accept the terms of the buyers offer with the following exceptions.  The seller then writes into the body of the counter offer the things they want changed in the original offer.  A buyer can accept the sellers counter offer, or give the seller a counter offer to the sellers original counter offer (it’s called a counter to the counter).  In real estate, all negotiating must be done in writing.  It is not uncommon for these counter offers to go back and forth a few times before both parties are willing to agree on all the terms and conditions.
  
  
• Assuming the buyer and seller come to an agreement on the price and the terms in writing, the offer is said to be “accepted”.  Within a day or two escrow is opened and the most important series of events will begin to take place. Please review my explanation of the escrow process in real estate. 
  
  

Common Mistakes Buyers Make

#1 Failing to use the services of an experienced realtor.  Many buyers avoid using the services of a REALTOR under the mistaken belief that it costs them money - or that they will be able to negotiate a better deal directly with the seller or seller's agent. This can be an expensive mistake.

If you are negotiating directly with the seller or seller's agent, you may not be taking advantage of the best deal available in the marketplace today! You can have your own REALTOR, a Buyer Broker or Purchaser's Agent, who is committed to using the experience gained through hundreds of successful real estate negotiations for your benefit - at no charge to you! Your agent can be paid from the same commission that the seller's agent is paid from - by the seller.

Real estate is a unique business, where an agent with one day's experience and no sales gets paid the same as an agent with numerous years experience and hundreds of successful sales. An experienced agent can help you avoid the other costly mistakes outlined here, and make your home buying experience an enjoyable, stress-free one!

#2 Failing to be financially pre-qualified.  Knowing how much you can comfortably afford will ensure you are looking in the right price range and prevent you from buying a home that will strain you financially and emotionally.  Most sellers will not take an offer seriously unless a pre-qualification letter from a lender accompanies it

#3 Failing to have a Comparative Market Analysis prepared before offering. Before you make an offer to purchase that special home, you must have a good idea what the market value is to ensure you do not overpay. Your agent can prepare a Comparative Market Analysis showing what similar homes have recently sold for, and the difference between the asking and selling prices. This is the same type of report the seller receives when deciding on an asking price. Wouldn't you like to have access to the same information as the seller?

#4 Failing to recognize different negotiating styles and strategies.  Many buyers think that the only way to achieve a fair purchase price is by offering low. This is the strategy of the buyer who is not in possession of all the facts essential to negotiating the best possible deal. Many times that type of strategy will polarize negotiations and lead to inflexibility on part of the seller - or worse yet - failed negotiations!

If you have chosen your REALTOR wisely, the most effective strategies for this particular situation will be revealed to you. Remember, in the real estate business, an agent with many successfully closed transactions usually costs the same as someone who is inexperienced. That experience could mean a better deal at the negotiating table with a minimum amount of hassles.

#5 Failing to have the home inspected by a competent home inspection company or engineer.  Buying a home is a major purchase usually made after spending just an hour looking at the home. Isn't it worth ensuring you will not be surprised later with deficiencies costing thousands? Your REALTOR can recommend several reputable companies for you to choose from, and will ensure the appropriate clause is inserted in the offer.

#6 Not knowing and understanding your rights and obligations set out in the Offer To Purchase. It is important to completely understand the terms of the Offer to Purchase. Wrong assumptions, poorly written or missing clauses, and not understanding how the clauses affect the purchase, can lead to increased costs or a void contract. An experienced REALTOR can thoroughly explain the agreement to you and help you to fulfill your contractual obligations.

#7 Letting emotion blind reason.  Buying a home is an exciting time and is usually an emotional decision. It is important that those emotions be validated by facts and reason. An experienced agent will help to remove the emotion from the negotiating process and provide you with the information you need to make the right decisions.

Being aware of these Big Time mistakes will help ensure you receive best value for your dollar when the time comes to buy your home!

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