Searching for real estate can be a very rewarding process or can be an extremely laborious task. Whether you view it as a chore that must be done, or you look at it as an opportunity to educate yourself and make an informed decision. How you prepare for it can make the difference and ultimately impact what and how you buy your new property.

During the course of conducting open houses and meeting with potential home buyers there are certain questions that are frequently heard. Questions such as

1. Has the electrical been upgraded?
2. How old is the roof?
3. When was the addition built and is it permitted?

All good questions that should be asked and verified.

There are two ways to conduct your due diligence when searching for a home. You need to find out everything you can about the property in question. This can be done through the inspection and disclosure process concerning the condition of the home.

On the flip side of the coin is the seller’s motivation. A question frequently heard is “Why are they selling?” Can uncovering the seller’s true motivation save you any money on your purchase?

Determining the seller’s motivation as to why they are selling can be very difficult if sometimes not impossible. The agent who is representing the sellers has a fiduciary relationship in which the interests of the sellers are supposed to be a higher priority than their own. On the other hand the agent is not supposed to mislead you or make any misrepresentations, however disclosing information that is confidential or proprietary is not part of the disclosure process, unless the principals have advised them to do so.

Its probably safe to say you may get some variation of the truth, such as “They have decided to downsize” or They have lived here for quite some time and decided it was time for a change”. Chances are you will never hear ” They have to sell immediately before the home goes into foreclosure” or “A judge has issued a restraining order and told the owners to sell”. It’s understandable to see how the first two answers could easily address the last two issues.

Sometimes it maybe easier to look for the little indiscriminate or innocuous signs that there may be underlying issues. My wife is excellent at this. She has a unique ability to walk through a house and make a quick summation as to what’s happening along with the current relationship of the owners.

Tell-Tale Signs

An unkempt home that is messy or maybe unpaid bills and receipts lie atop the kitchen table, could be signs that all are not well. Missing furniture, a wall where a picture used to hang and empty closets may provide another clue. Is the car parked in the middle of a two car garage, or pulled in closely to the side?

Lastly, your job is to negotiate. The key to any negotiation is to understand when to walk away. Uncovering the seller’s true reasons as to why they are selling may save you a few thousand dollars. The money you save could be that new piece of furniture or big screen TV.

Tags: home buying advice, negotiating a home purchase, real estate buying tips