Secret #5: How You Evaluate Homes Will Save You Thousands And Heartaches!

One of the biggest mistakes people make when buying homes is they rely solely on "local neighborhood market analysis information" to determine the right price to pay for a home.

Before you buy or refinance your home, INSIST on seeing a "total market overview" of exactly what is going on in the ENTIRE market. Then narrow your analysis to local market information.

Why do I say this? Because you want to know 2 things: 1) What is the ENTIRE market doing with values? Are they going up? And by how much? 2) What is the specific area doing with market values? How does it compare to what the total market is doing? Are the growth rates the same, lower, or higher than the overall market?

Understanding these parameters will save you thousands of dollars when you make an offer on a home. I frequently perform both of these analysis for my buyers, in an easy to understand format, so you know EXACTLY what you’re buying!

OK, so let’s say you’re now pre-qualified with financing, and you’ve also found a number of homes to preview.

The Way You Inspect A Home For Sale Can Save You

Enormous Amounts Of Money And Time

It’s now time to find not only a home that fits your needs, but a home that will be a good investment. What are some of the things you should look for?

Well, the first thing I always look for is what I call "siting." Siting involves evaluating 3 areas: Location, Lot siting, and Home siting.

The general location of the home you’re considering could determine how happy you’ll be living there, and what kind of an investment you’re buying. Here’s an important tip that will almost always make you money…

Buy The Midrange Home In The Best Neighborhood You Can Afford

Why do I say this? Because the better the neighborhood, the better the appreciation for you over time. And if you buy the midrange home, the home will "generally" appreciate faster and greater than a higher priced home in the same area.

Plus, you will most certainly spend money updating or decorating your new home, and you don’t want to get "upside down" on your homes value after spending money for improvements. So remember…

NEVER Buy The Top Of The Market!

Now the second area you need to consider is Lot siting. Lot siting has to do with WHERE your particular lot is located in the subdivision you’re considering. Ask your agent for a plat map of the entire subdivision. Now take a look at where your home’s lot is located in the subdivision.

Is it near a common area? Does it capture better views than other lots in the area? Is it more private, or shaped better than other lots? Is it near a loud street?

Lot siting in a neighborhood will give you a basis for knowing how well the home will appreciate vs. other homes in the neighborhood (assuming the home is reasonable).

Finally, you want to look at the Home siting. How well did the builder take advantage of all the amenities the LOT offers a home? Are the views great? How’s the curb appeal? Is there a balance between front and back yards? Do you see any drainage problems because of where the home has been located on the lot?

Think through these things as you visit each home.

Now, as you approach your home, there are other things you want to keep in mind…

What is your initial reaction of the home as you approach it from the street? This is called "curb appeal," and it has a great impact on the value of the home. Is the home sited right on the lot? Notice the areas around the home? Are they well maintained? Is the landscaping groomed?

Take a look at the structure of the home? As you go through the home, windows and doors should be square, and they should close correctly. Look around windows and doors for cracks. Check corners of rooms for sloping or tile/wood cracks. These may reveal foundation or water problems.

Now think about the floor plan of the home. Is it functional? Do the common areas flow the way you want them to? Are the halls narrow and long, or are they open? How far will you have to carry the groceries from the garage? Are the rooms the right size and height for your desires? If there have been any additions, were they done professionally? Do they fit with the flow and style of the home?

Now, check the roof and ceilings. Is the roof the type you prefer? Is it in good condition? When was the last time the home was roofed?

Now make a basic check of the plumbing, mechanical, and electrical systems. Do drains and toilets work correctly? Is the property connected to sewer, or will you have to deal with a septic system? Is the electrical wiring up to code? And are the mechanical systems working properly? Make sure you get these systems inspected by a licensed contractor or inspector BEFORE you close any deals.

Secret #6: Save Thousands Writing Your Offer And Negotiating Your Deal

Years ago a real estate expert told me that the party who is less motivated almost always gets the better deal. The ONE single element that will determine how well you negotiate your offer is…

How MOTIVATED Is The Seller,


If the home has been on the market for over a year, perhaps it’s because the seller hasn’t been motivated enough to sell. Or perhaps the home hasn’t sold and he/she is very motivated.

And if you’ve been looking for 4 months, your kids are late for starting school this year because you haven’t found a home yet, and you now have found the right home, YOU may be very motivated to buy!

Nevertheless, here’s a tip you MUST bring to any real estate transaction…

Move Heaven And Earth To AVOID Emotional Attachment

To The Home You’re Considering

If you’re all giddy about the home. If you can’t hold back your emotions when around the home, then you’re going to get clobbered when negotiating the purchase.

And that’s ONE reason why you need a Realtor representing you during any transaction. The middle person alone will help save you money.

So let’s say you have a Realtor representing you (make sure it’s a BUYERS agent, or you could lose a bundle!), and you’re ready to write an offer.

What’s the single best piece of information you can have?

It’s the comparable sales and market data for the entire market, and the area. Ask your Realtor to print out both for you to use. Now, here’s what you want to do…

You want to take a look at 4 important "market tell-tale signs:"

Take a look at the currently active (for sale) listings in the area. Was the home you’re considering priced within reason to other homes? If so, you know you’re at a reasonable starting point.

Now, take a look at what the average selling price is compared to the listing price. You may notice that most homes are selling for about 3 or 4 percent less than their offer price. If that’s the case, you know the original offers were LESS than this amount. Take this into consideration when making your offer. And leave plenty of room for negotiating.

Now, make sure you visit several of the other listings in the area. How does your home compare to the other homes? Is the home you’re considering in similar shape? Is it better sited? Is it bigger, smaller, better style, better landscaping, etc.? These factors will help you determine how much you should pay for your home vs. how much others paid for similar homes in the neighborhood.

Now, take a look at the average market times for homes in the area. If they’re long (evaluated on a market by market basis), the market may be soft, and you might have more negotiating room with your offer.

You’re now ready to make your offer. At this point, I highly recommend you work closely with a BUYERS AGENT to structure your offer. They will talk about strategies such as 1) should you offer a high price and ask the owner to throw in all kinds of extras, or 2) offer a low price and skim your way into the neighborhood?

The correct answer depends on your personal situation. And you need to work closely with your Realtor to strategize your offer.

Secret #7: Be Financially Prepared – Ahead Of Time!

Many people go about the home finding process backwards. They go through the entire process of searching, evaluating, and writing an offer on their home, WITHOUT being financially prepared.

And it usually costs them money. Big money!

Doing a few things up front, BEFORE you go searching, will save you a lot of money, time, and hassles. What are those things?

Here are 3 of them.

First, find a MOTIVATED lender. No, don’t just go down to your local bank where you’ll likely to be slowly tortured by some bureaucratic "vice president" who makes his bonuses and gets promoted according to how much paperwork he creates (at YOUR expense) and how many DECLINES he produced.

You see, the only quota a banker has to live by is: "How many BAD loans did you originate?"

They don’t get measured by their production…

They don’t get measured by their service…

They only get measured by the MISTAKES THEY AVOID!

Now, I know if your local banker sees this, he’s going to blow a cork, and start reciting all the ad campaign jargon most banks are spouting these days. But the truth is…

There Is Absolutely NO Incentive For A Traditional Banker To

Serve Your Interests In Any Way

What you want to do is find a mortgage lender who is MOTIVATED to take your loan. One who represents many different products, and can offer you many options for making your loan most affordable.

Here’s an important tip: Ask your Realtor to refer one or two lenders to you. Why? Because Realtors have power over lenders, because they send lots of clients. It’s not just YOU alone talking to them.

If they don’t give you first class service, the Realtor who sent you will refer (ALL) their clients to someone else. So they’re motivated to SERVE YOU. And the minute you have a problem with your loan, you can turn to your Realtor…who has much more influence and leverage over the lender than you alone.

After all, your Realtor and lender both want to see the transaction close. There’s power in numbers and influence. Use it to your advantage.

Now, the second thing you want to do is GET PRE-QUALIFIED with a lender. Better yet, try to get PRE-APPROVED.


Because the first question any home seller will ask when an offer is presented is "Is your buyer approved for a mortgage?"

And rightfully so! The seller doesn’t want the deal to fall through because you couldn’t get financing. When they accept your offer, their home comes OFF the active market. If you fall through, it costs them time and money.

Plus, there’s one more reason to get pre-qualified or approved…

You Will Have Much More Power To Negotiate

Price And Terms When You’re Financially Qualified!

When you have money behind you, the seller knows your serious. And a serious buyer ALWAYS has more influence to negotiate. So do yourself a favor, GET PRE-QUALIFIED or PRE-APPROVED!

Now, the third way to become financially prepared is to have deposit funds available immediately. One way to do this is to write a check in the amount of 3% of the highest price you’ve been qualified for financing.

Make the check out to the Brokers Trust Account, or the Title Agency you will use. The broker or title company are trustworthy fiduciaries by law, and will hold the check un-cashed until you make an offer that’s accepted.

Now I know what you’re saying… "It’ll be a cold day in Hell before I write a check before we’ve even located a home." I understand.

But you may want to consider this…

Jim and Susan were buyers from outside their immediate area. Because of their distance, they could only get together with their agent with 2 days notice. And the market was pretty good.

Three homes came on the market, and were sold before they could get together to visit them. Twice, they lost other deals because of bidding wars.

Finally, out of frustration, they placed an un-cashed deposit with their broker.

When they finally found the right home, they decided to write an offer…

And because they placed an un-cashed check on deposit, their agent could enter negotiations with verbal authority to make the offer. And because the agent could demonstrate that he had earnest funds, the buyers were able to sign a faxed copy of the offer, and their deal was secured.

And it’s a good thing! The very next day, 3 more offers came in on the home they just put into escrow!


There’s a huge difference between a Buyers Representative and other agents. First and foremost, if you don’t have a specific agreement to be represented by your agent…

Chances Are, YOUR Agent Represents The SELLER!

Yes, it’s true. And the question you have to ask yourself is… "Is this person going to represent MY interests?"

Think about this: If you had to go to court, would you use the same attorney the opposing side was using?

I think you know the answer! But did you know that by creating a "buyers representation" with your agent, you not only get someone representing you, but…

A buyers representative doesn’t cost you a nickel more than any other agent. Even though they represent you, they’re still paid out of the standard commission…

Buyer representation is easy to enter into, and will support ONLY your interests. This includes finding your home, helping with financing, and negotiating the best possible deal for YOU...

A buyers representative will keep everything about you and your deal CONFIDENTIAL!

OK, so you know the difference between any agent and creating a "buyers representation." But did you know what a good agent can do for you?

A good agent knows the area you want to buy in because he/she is out constantly looking at homes…

A good agent can spot trouble for you. He or she will be experienced at looking at homes and will see things you might not see.

A good agent will greatly simplify the buying process…

A good agent will give you MOTIVATED, reliable financing sources and options…

A good agent will refer you to proven inspectors, title and escrow officers, and other service providers you’ll need.

Most importantly, you need to know that…

There Are "Real Estate Agents"…

And Then There Are Committed Professionals.

Which One Do YOU Want Representing Your Interests?

I hope the information above has given you helpful advice for helping you find, buy and finance your next home.

And at this point, you’re probably pretty clear that, in order to find the right home and save money, you need someone competent and professional to represent YOUR interests.

Over the past 5 years, I have recognized this fact, which is why I wrote this special report, and structured my practice around giving the most competent service possible.

[NOTE: Here’s where you explain why someone should do business with you vs. other agents – take the examples below and apply them to your practice]

For example, I have a full-time assistant, a full-time marketing specialist, two offices, two computers, a cell phone, a pager, 3 phone lines, 6 voice messaging hotlines, and a toll-free number. To the untrained person, this looks like a lot of overhead. But to me, every person and system pays off dividends in satisfied clients. They’re PROFIT centers, not costs.

There’s a difference between agents who simply sell real estate, and those who COMMIT to whatever it takes to serve a clients beyond their expectations. I’ve been in real estate over 5 years. But more importantly, I’ve closed over $35 million in home sales. I am a full-time Realtor. I have a college education and a complete resume for your review.

I also make it a priority to educate you on every aspect of buying a home in your preferred area. I have a long list of past clients and professional references whom you can call at any time to discuss the quality of my service and follow-up.

I guarantee everything I do in writing. This places the burden of risk and performance on ME, not you. I also have references to reputable people in mortgage lending, appraisals, title and escrow companies, tax specialists, and attorneys. These are people I have used in other transactions.

Each day, I speak with over 80 people directly related to buying or selling real estate. And I receive over 80% of my new clients through referrals and repeat business. My personal marketing involves such outstanding and continued service to my existing clients and personal network, they are inclined to share my services with family and friends.

I’m Not Saying These Things To Impress You,

But Impress UPON You The Difference Between A Realtor

And A Competent, Dedicated Professional

Buying and selling real estate can be tricky business. And selecting the wrong Realtor can cost you a lot of money, headaches, and wasted time. That’s why I designed a specific program designed for buyers like you. I call it my…

ray king
Humpal Realtors

P.S. Once you have read this report completely, make a list of areas you would like to discuss, and gall me at 815-394-1823 to enroll in my Exclusive Preferred Buyer Program. I’m confident I’ll help you find the right home, at the right price, and save thousands in the process. My services are Free to you. So before you get distracted, call now!


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