The www.merriam-webster.com/dictionary definition of what it means to be Savvy.
– practical know-how <political savvy>
– having or showing perception, comprehension, or shrewdness especially in practical
– practical knowledge or understanding
My definition for being Savvy as it relates to buying a home is; acquiring the home of your desires at the best possible price. Below market value! Everyone wants a bargain of a deal. Being smart, using wisdom by planning a strategy to ensure you do everything possible to get a good deal, Now that is being Savvy.
Also, being Savvy doesn’t have to mean buying below market. Great locations in high demand easily bring the seller top dollar. If this location is your desire and you don’t mind paying the price required to get it, that is OK. There are still other areas in which to be Savvy. For example:
– How to prepare your financing.
– How to prepare, structure and present your offer.
– How to inspect the home so you don’t buy into any hidden defects.
Just because a home / location is in a high demand area doesn’t mean there are no distress situations with some home owners there. Being Savvy is knowing how to seek out these situations which gives you the best chance of getting a bargain. Especially when the home is not for sale, on the open market and you therefore have no competition.
My wife and I during our first 11 years of being married moved 9 times. Because we were being Savvy working towards a goal of building our dream home. We bought fixed up and sold for a profit until we were able to build our 2 Story 4000 S.F., 3 car garage, full 2000 S.F. partially finished basement, home on .8 of an acre, just the way we wanted it. Just one of our custom features was a huge master bedroom with a huge master bath and large walk in his and her closets, with custom wood shelving, Double bowl vanity, jacuzzi, separate large shower and his and her toilet rooms.
Sure, it involved some sacrifice and delayed gratification. No pain no gain is a familiar saying. Yet we lived better than most our family and friends. Being Savvy in my approach to home buying wasn’t complicated for me since I was investing in homes for investment as well. That fact certainly made it easier for me to be a Savvy Home Buyer. I also worked as a Real Estate Broker and have helped others buy good deals on their homes. I’ve seen buyers working with other non-Savvy Brokers who didn’t know how to be Savvy, pay too much for homes. You will not be one of those buyers when you implement what I teach.
If numbers are a priority for you then the minimum objective is to pay $10,000 less than market value for any home you buy. Now that is the minimum, I have certainly received much better deals than that. As an investor, you have to buy with enough profit to cover cost and make a profit.
To be a Savvy Home Buyer is to avoid getting caught short when you sell. It also involves becoming informed. As with everything there is a learning curve. Most people go through the College of Hard Knocks, learn through trial and error. In my course, I’m providing you step by step what you need to know to be Savvy.
Sometimes shortly after buying a home, some people find that their life circumstances change for whatever reason. Job loss or transfer, medical, problems etc. Now when they now need to sell, they find that because of how much they paid when they bought, they now are going to have to come to the closing table with money, in order to cover their mortgage payoff, commission and closing cost.
Obviously, a Home Buyer in the situation of needing to sell within a couple years of buying and being able to cover all their cost and walk away from the closing with a profit, is going to feel really good about themselves. Those Home Buyers qualify as Savvy!
Buying a home can be an intimidating process, both personally and financially. It is the biggest decision that most people make in their lives. Becoming informed is being Savvy when buying a home.
You can take control of your own home buying experience by doing some research. Instead of relying on what others say, figure out for yourself based on your budget how much of a monthly payment for a home you can afford. This allows you can go into the conversation with the mortgage lender armed with information. Having that knowledge will allow you to make better decisions and feel more confident about where you stand.
Many people have bought several homes. For most people buying a home is a rare occurrence, if not a once in a lifetime event. Some real estate terms will be new to you, there will be issues or scenarios you don’t fully understand. Don’t be afraid to speak up. You are spending a lot of money and should feel comfortable. As you absorb and apply the information in this course you will become confident!
Being Savvy in Your Approach
You are tired of renting or living with Dad and Mom so you want to buy a home. Before going out and looking at home you need to know what your financial abilities are. In fact, if you are the one who is mostly responsible for the finances in your family, it is premature for you to get the family, (even if that is just your spouse) excited about buying a home before you even verify your ability to buy.
To be Savvy in your approach you want to know your financial ability before you have any other thoughts or take any other actions toward home buying.
- No disappointment or embarrassment. So you and your spouse don’t go out and fall in love with a home to then just find out that you don’t have the financial ability to buy it. May seem silly, yet it happens all the time. Your time would be wasted, the Realtors time (says something about a Realtor who will show homes to a buyer without advising them to verifying their ability first.) If you told family and friends that you are house hunting, you will have to walk it back if you find out you can’t qualify.
- Many sellers including banks will not respond to an offer that is not accompanied with a Pre-Qualification / Pre-Approval letter from their lender.
- When you are Savvy you have a Pre-Approval along with a Commitment Letter from your lender. This makes you a “same as cash” buyer, just subject to appraisal and title and you can close quickly. Now you have more negotiating power!
When you do these your chances of making a good deal are much higher than the non-Savvy buyer.