How to Buy Seattle Area Homes at a Discount

by SSB on August 11th, 2010

Looking for Seattle Area Homes for Sale? Well, before you rush off trying to make purchase, I strongly recommend you read this article first as it may be the most important one you’ll ever read if you’re currently seeking to purchase property.

It’s 2010. If you’re in the market to buy, you better be in the market to invest because a single wrong purchase (yes, even in a “down economy”) could very well turn YOU into another distressed seller in the next 5 years. Imagine being forced to short sell or foreclose a property that you purchased in a down economy. That is a very scary notion and I do not wish these circumstances on anyone.

As a Washington based short sale expert, I have seen many, many Seattle area homeowners come to me having to short sell claiming their buyers agents had “duped them” into purchasing properties at prices that are now substantially above market value.

So who is to blame? The lender? The buyer? The agent? In my opinion, everyone is to blame as each of these parties play a vital role in the buying process. Let’s discuss exactly what happens in a bad purchase.

Let’s start with the lender:

You need to work with a lender that doesn’t bend the rules, period. You know why? Consider this example. When a crooked buyers agent & lender work together, the buyer will convince you that the property is worth $300,000 to get the deal done (when it may only be worth $260,000), and the lender will step right in with a twisted appraisal to “confirm” that the property is indeed worth $300,000 to you and the official underwriter who approves the loan. Now that everyone is convinced the property is worth $300,000, you obtain the loan, close the transaction and now you are upside down on your mortgage. This happens, folks, so make sure that you are working with an ethical lender who knows what they are doing.

In addition, many lenders out there will get buyers into loans that they cannot afford, by twisting around financial information to convince the underwriter that you can afford the property when you simply cannot. Since most buyers are inexperienced, they will agree to these terms since they’ve fixed their eyes on that property and are perhaps emotionally involved in the transaction. A professional, ethical lender will see past this and make sure you do not set yourself up for failure.

The benefit of working with an experienced, ethical lender is that you’ll be able to get a “2nd opinion” on the value of the home when the lender orders the appraisal. If both the bank and your buying agent believes your property to be worth X amount, then it probably is (given that both the agent & lender are ethical people), and you should have peace about moving forward with your transaction. If there is a large discrepancy, then back off and reconsider the purchase.

The Agent:

Agents work on commissions. If you understand this concept well enough, you’ll know not to work with agents who appear to be greedy, impatient & pushy as those are signs of a person just trying to make a sale.

A solid agent gives you the freedom to look for properties, yet will give you proper guidance on the ones that you are interested in. They will give you access to the very listings that they themselves have access to, unlike some agents. Did you know that some agents will sift through properties and only send you the ones they believe will close easily and as quickly as possible? These kinds of agents look for such things as high commission rates, “overstocked” condo complexes & non-distressed properties (short sales and REOs) in order to avoid having to negotiate or bid. Avoid these agents like the plague. They know nothing about investing in real estate.

Lastly, a solid agent will not be a “yes man or yes woman.” They are not going to sit there and agree with 100% of the things you say, because unless you are more experienced in the business then they are (if that’s the case then, well, run), they’re going to naturally lead the transaction and not the other way around. Work with an agent who can kindly disagree, as that is a sign of someone who is not afraid of losing commissions, which is a good thing.

Buyer:

The fact that you are reading this article right now tells me that you understand your responsibility as a buyer, which is to carry out your own due diligence. After all is said and done, you’re going to be the one purchasing the property, so you need to remember that you, my friend, are solely responsible for any properties that you purchase. With that said, I’m going to answer the question of the day for you.

How do I Buy Seattle Area Homes at a Discount?

The answer is simple. Work with an experienced Discount Property Expert. There are aspects of purchasing discount properties that would take me pages and pages to explain. Why not simplify the process and work with someone who has accomplished successful purchases on behalf of clients countless times over?

When it comes to buying discount properties, bothing beats partnering with someone with years and years of experience in this particular field. Would you rather entrust your car to a college student or a veteran mechanic? In the same way, entrust your property purchase with an expert and you’ll come out safe, successful and with no regrets.