How To Have a Win-Win Transaction

No transaction goes perfectly smooth. So, what can you do to minimize the rough spots and come to the closing table with a "Win-Win" transaction?

First of all, make sure you're working with a Realtor(r) who has a high degree of integrity and honesty. Ask your friends or co-workers if they have heard of the Realtor(r) you are considering. Get a referral.

When you have found the house of your dreams, that is, it's one that fits your criteria of the number of bedrooms, bathroom, size, location, and your financial picture, ask your Realtor(r) for a recommendation on what price to offer. There are several terms involved in the purchase of a home. The price is just one. Other terms include the amount of the earnest money. I recommend earnest money of a minimum of $500 for every $100,000 of the purchase price. This shows the seller how "earnest" you are.

Suppose you want to buy a house for $200,000, but you want to put down an earnest money of only $500? Put yourself in the seller's shoes. The seller's monthly payment on the mortgage is approximately $800 - $1,200. Is your $500 earnest money going to look appealing to the seller when they have a monthly payment to make, AND they are chomping at the bit to buy another home? Not too likely. Make the earnest money appealing to the seller by offering at least $1,000 or more if you can afford it. If you can't afford it, can you afford to buy a house at that price?

Another term involved in making an offer includes which title company to use and what escrow company to use. Sometimes, they are the same company. If you have bought a home before and have a preference for a certain title company in town, you may have the option to use them again as long as the listing agent hasn't already opened preliminary title at a different title company. Otherwise, it will be your responsibility, according to the Purchase and Sale Agreement, to pay the cancellation fee. This ranges from $45 to $65, depending on the title company.

Back to the price. Let's say you did your homework ahead of time by going to a lender to find out what you can afford and are comfortable paying for. If you are financially comfortable buying a $200,000 home, let your Realtor(r) know that, and she will look for homes in that price range. But don't do it backwards and ask your Realtor(r) to look for homes in the $200,000 price range and then find out what you can afford. You may end up finding your dream home is out of your price range, then only be able to offer $165,000. This is not looking like a "win-win" transaction.

So, take the steps to prepare for a win-win transaction, so you won't be surprised with the results!

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Quote of the Day: "If the sight of the blue skies fills you with joy, if a blade of grass springing up in the fields has power to move you, if the simple things of nature have a message that you understand, rejoice, for your soul is alive." ~Eleonora Duse

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For a list of homes in your price range, call me at 509-431-5804. I look forward to talking with you!

Connie Suehiro, Realtor(r)

509-431-5804