What should my first offer be $………..?
Image by B3OK via Flickr
And just as related too, long before the above question is asked of me, I ask,
“in what price range should I be looking for you?”
The top one is is the penultimate question I’m asked every day, but you know what, it’s almost the pre-eminent one too in many respects.
Why, well because it requires a bit of reverse engineering, that’s why.
Huh? I ask myself, why do Kiwis appear to cloud the truth from someone [keep in mind I am talking about an approved someone that is] who actually wants to help them?
Well frankly, I wonder if it’s the carry over from a car salesman analogy that the media loves to portray [and not here to caste aspersions on any particular category of vocation, just going from that previous consumer research] that would indicate someone who might be inexperienced may lend themselves to offer outdated or inappropriate advice.
Like everything in life, one should not take what they hear, what they are told, or what they are shown visually, 100% of the time, as verbatim. Like most things in life, it pays to do a bit of background research. And just as I would do, once that information conforms to the status quo, or offers an experienced contrarian view, I would personally dig deeper to confirm my own perspective on a previously perceived correct decision. So, where am I leading to……
Only what is arguably the most important decision in most people’s life….
The purchase, and in most cases the financing, of a family home……… and here, back from a well deserved break, on a very relevant note is this weeks regular comment from Mark Papps…
PRE APPROVALS
In today’s market a good idea is to see what finance you can get before you actually go out house hunting, as one question an agent will ask you is to what value can you purchase up to. [Dave L - if not, well then he should be asking that, because he is working for the vendor don't forget]
Questions presented by the current conflicting media reported situations are…….
Will rates go lower?
Will home prices go lower?
Have we reached a market bottom, etc ?
There has never been a more important time in the last 15 years that I know of to seek independent advice. Ok, so you might not follow it, but hey, wasn’t it worth getting it in the first place to compare? At least you now know the options available?
Well, personally if you were to listen to my last 2 buyers, yes! One, a middle aged couple, similar age to myself, from the UK…….had grown up to trust the same bank that gave us a piggy bank in primary school…and was always going to look after us as we grew older. Guess what? $51.40 a week what! And that’s why I’m writing this.
Its not for me to tell you what to do….but I do feel an obligation to ensure you are completely aware of your options, and ensure that you investigate any potential opportunity on the horizon or just over it.
It’s not difficult to see the face of the daily turmoil in the financial and associated markets. Set amongst the current financial market this is the best advise that I can offer, and what’s more it is free for me to arrange for you.
Why I say this is that all the banks [yes your bank included] have a market that they are trying to capture/retain, and their lending policy is tiered towards those clients that they are after, or want to look after.
That is to get your finance pre approved as this allows you to know what the bank is pre pared to lend to you, incredibly important in these uncertain times. And if you do have a deposit saved up, then you owe it yourself to maximise the advantage that this situation presents you.
After all, how long have you strived/worked to save that deposit up?
Should you now just offer the opportunity to share in your savings to just one lender?
In the current Nelson market situation , a pre-approval is viewed, from an agent perspective, as literally “gold”. That offers you a fabulous opportunity to be in front of any competition should you instantly find your dream home, but find yourself in a multiple offer situation. [Fact - our Stoke Office has had 5 multi offers in the last 2 weeks - interesting in light of some recent comments from ANZ in Jan 2009 like..."Some real estate indicators are starting to suggest a base is forming in the property market ".... and ..."Several indicators in the real estate market are starting to turn and point in the right direction."]
If you’re unsure about any of this just contact me and I can explain.
Regards, Mark Papps
♣ NZMBA – Nelson Marlborough Mortgage Broker of the Year 2006, 2008
♣ NZMBA – New Zealand Mortgage Broker of the Year – 3rd in NZ for 2008
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Mark Papps is the Manager of Nelson Marlborough Mortgage Services. He specialises in Home Loans.
February 09 2009 | Mortgages Finance Money and Nelson | No Comments »
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