I have heard many fishing stories in my lifetime. They always start out with how they were on a beautiful lake, the waters were calm, the fish were biting and it was perfect. Then there is talk about all the fish that were caught and there would be a fish fry that night, but the boat about 50 ft away had more fish and they caught the biggest fish of the day. You wonder how they caught more fish and the bigger fish. Well the reason is that they were more prepared and had better bait and started earlier in the day.
This same story can be applied to real estate. There have been a number of times when a buyer falls in love with a home and they want to make an offer, but they are not prepared, got there too late, or did not make a reasonable offer (bait).In today's real estate market, in Montgomery County Texas, there is more demand than supply. This means that homes are being sold for closer to asking price and in some cases there are multiple offers, so time is of the essence. Thinking about making an offer overnight usually turns into sorry I accepted another offer last night. If you absolutely love a home jump on it, do not think.
It is VERY IMPORTANT to be prepared before you go out with a realtor to see homes that you are interested in.
The first step is to get with a mortgage professional and have them look at you credit, income, assets documents and employment history. to determine if your particular situation meets lending guidelines. They will also determine what your budget is based on your gross income and your monthly out going debt. In my professional opinion a buyer should not purchase a home that will extend there debt to income ratios past 40%. Fannie Mae allows up to 45%, and FHA and VA will allow up to 50% in some cases. What lenders consider in the debt ratio calculation DOES NOT INCLUDE normal housing expenses that you will incur on a monthly basis, such as electricity, water, TV, cell phone, internet, groceries, entertainment etc. So put the horse before the cart and meet with a mortgage professional before you waste a lot of time and money driving around looking at homes.
The second step is to enlist the services of a competent Realtor. You need a realtor that does not waste time. Get started as early as possible and make sure your Realtor knows all the details about the property. Like if there are any other offers or prospects that are hot on the same property. Do they know of comps in the area to be able to make a reasonable offer.? Is the property priced right? In Montgomery County, depending on the neighborhood, homes are being sold for 97%-103% of asking price. If you fall in love with a home, make sure you have the right bait (offer ) to be able to catch the big one. If not it will be The One That Got Away!
Call or email Brian Newhouse or Dixie Estep at Dixie Estep Real Estate so that we can start early, get you prepared, and help you make sure you have the right bait. Sign up on our website and view any listing on the Houston MLS, and receive updates on new listings, pricing and a whole lot more.
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