Andrew Wetzel's Musings

September 12, 2017

Want to Buy a house? Think baseball!

Filed under: Uncategorized — awetzel @ 2:07 PM

Analogies are a great way to make complex topics seem simple. Buying (and selling) Real Estate are NOT “rocket science” but, unfortunately, too many underestimate what they think they know when making what is typically the largest financial decision of their life.

Why baseball? There is no time limit and it has four specific reference points. Let me explain. Home plate is where you start and, if you are successful, you will round the bases and return home as an owner. Home plate is the goal and you can get there two ways:  you can successfully navigate each base (one at a time!) or you can hit one out of the park. In this analogy the fielders are obstructions that can stop you in your tracks or delay your progress. The pitcher represents “life”, tossing you the ball which is the opportunity to buy. In order to succeed, you need to reach EACH base and satisfy some requirement to move forward. By the way, a HOME RUN means someone has given you a house so you do not need to do anything else.

First base:  to get here successfully, you need to get “pre-qualified” by a reputable lender to make sure that you know how to start your search. What a lender is willing to do may exceed your “comfort level” and that is fine. It does not work in reverse unless you find a real bargain. Unfortunately, some consumers will need to do some work to get to first base while others will be forced to sit on the bench, unable to buy at the moment. Knowing your situation will help you avoid wasting time. Ideally you will have hired or be in the process of selecting an agent. No matter how much sense this analogy makes, most buyers will need a trained professional to negotiate the process/ bases.

Second base:  the search is on! This is the fun part and, for many, the most time consuming and possibly the most frustrating. This is where hiring an agent really starts to pay off:  they should help you decide what you want to buy by asking questions and compelling you to make decisions. We cannot tell you where to live but we can help you narrow the choices so that you can get to see the best properties for your needs before they are off the market, sold to someone else. While looking at houses is fun for many, it can become a project in and of itself and many consumers find it difficult to make decisions. Where to live, what to buy, how much to offer and other questions must be answered! To reach third base you need to have a fully executed agreement of sale in place.

Third base:  now that you and a seller have agreed to “terms” (price, financing, contingencies and time frames), the two major aspects of getting to settlement/ closing loom large. They are the various property inspections and finalizing the mortgage approval. If you are not using mortgage financing you will probably find this phase easier. While the financing aspect depends on others, the inspection negotiation is where the principals, meaning the buyer and the seller, get to determine how serious they are about getting the deal done. I generally do not recommend waiving inspections!!! How do the results (what did the inspector(s) tell you that you did not know or expect?) compare with your expectations at the time you first saw the house, decided to make an offer and then negotiated and executed/ signed the offer? Do BOTH parties want to move forward? The inspection phase typically occurs before the mortgage is finalized so getting past this step does not automatically mean that a sale is going to close. Assuming that all of the details that need to be concluded are addressed, you move to HOME! Congratulations! Hopefully both parties are satisfied and can move on to the next phase of their lives without hesitation. That is not always the case as issues do arise after settlement.

The process leading up to and whatever happens after settlement often involve opportunities for disagreement and doubt, even in the smoothest sales. How they are managed depends on preparation and effort. You will get to re-evaluate the process from time to time so it is important to …

HIRE WISELY!

Please read my other posts at WhyAndrewWetzel.com and visit my web site AndrewWetzel.com

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1 Comment »

  1. […] may not have read my earlier, related post using an analogy about buying a house and baseball (https://andrewwetzel.wordpress.com/2017/09/12/want-to-buy-a-house-think-baseball/) so let me state my premise:  analogies are a great way to make complex topics seem simple. […]

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    Pingback by Want to Sell a House? Think baseball! | Andrew Wetzel's Musings — September 14, 2017 @ 3:37 PM | Reply


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