Andrew And Associates

How to Buy a Home in Utah for Under $200k

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Along the Wasatch Front, it is becoming increasingly more difficult to purchase a home for under $200,000.  By the time most people find a home for under $200k, they find out it is already under contract. In short, it can be a very frustrating experience if you don’t have a systematic plan in place.

I’ve had some success in helping clients find and purchase homes under $200k. As I thought about it, I have them follow four basic steps. This report outlines a systematic plan for finding and purchasing an affordable home along the Wasatch front. If you follow these four steps, you are much more likely to have success.

1- Meet with a High Quality, High Service Mortgage Loan Officer
The very first thing you must do before you even begin looking for a home is to meet with a high quality, high service mortgage representative. Service is the key word here. You need to give them all your financial information. Don’t leave out anything. Honesty is always the best policy. If you’ve had a bankruptcy, talk about it. If you have changed jobs recently, bring it up. You must give accurate and timely information to the mortgage officer. Too many people are very disappointed when they don’t get the loan because they “forgot” to discuss some of their important financial matters with their loan officer.

Once you’ve given the loan officer your information, you should be able to get an automated underwriter approval.  You’ll know exactly the type of loan, payment and interest rate you qualify for.

If there are some financial or credit problems you need to work out, a good service oriented mortgage officer will help you develop a plan for resolving your financial problems. It may take a little while to accomplish this, but at least you’ll know exactly what you need to do.

2- Get a Clear Picture of What You Need in Your New Home
Once you have your finances in order, you must get a clear picture of what you are looking for in a home. You must set some priorities. For example, what is the most important thing you need in a new home? Is it three bedrooms or two baths or both? Is it where the home is located? Are you willing to do some work on a home or do you want it to be in move-in ready condition?

You will need to do a little homework in order to learn what’s available on the market in your price and priority range. The more you know about the market, the better decision you will be able to make. The best and most affordable way to do your homework is to get information on-line and review it. That brings me to the next step…

3- You Must Get Timely Information about Homes that Meet Your Criteria
One of the services I offer my clients is a Free automated MLS (Multiple Listing Service) email.  I work with my clients to determine the type of home, bedrooms, bathroom, location, price range, etc. they want to look at. Then, I set up an automatic email service for them. Each day as new homes come on the market that meets the criteria, the client receives an email which gives them FREE access to the MLS as my guest. The client goes on-line and reviews every detail about each home. In many cases, these homes have pictures and tours. It helps them to get a good idea about the home without having to leave their home or spend money on gas. It also gives them a good education on what’s available on the market.

Let me clarify two things about the last paragraph that may not be clear to you. In order to be successful in finding that home after your finances are in order, two things must happen.

First, you must get information about the homes that meet your criteria as soon as possible.  Many people think they can just go online and look at the homes on one of the popular real estate websites. Well, you can, but there are two major problems:  1) You will not get the detailed information you need such as address and 2) the home could easily be under contract by the time it shows up on these “popular” websites.

This is why I send out the automatic emails every morning at 6 am. If a home is listed at 5 pm, you will know about it by 6 am the next morning. This is critical. Homes in this price range (that you want to live in) are being put under contract in less than three days…. sometimes in less than three hours. Timing is everything.

Second, I give my clients everything about the home. That means the MLS email gives them the address, tours, pictures, square footage (on every level), taxes, lot size, etc. You can’t play games by looking at a home and thinking… “That looks pretty good. I guess I’ll call my real estate agent and get the address”.  By the time you play telephone tag, you’ll not only get frustrated, but you may even loose the chance to make an offer on the home.

If you’re working with an agent that won’t give you all the information you need, fire him!  Here is another reason why it is so important for you to get all the information. How many times have you seen a home that looks wonderful only to find out it is in a neighborhood that you wouldn’t want to live in?... or is on a busy street?... or is next to a old worn down factory? You get the picture. Once you’ve done your homework and have identified a home that may meet your needs, you need to check out the neighborhood as soon as possible.  

If you like the neighborhood, pictures, tours, etc. you’re ready for the last step…

4- You Must Be Willing to Make a Reasonable Offer Quickly When You Find the Right Home
If you’re working with the right real estate agent, then he/she will be able to respond quickly to your needs. That means you should be able to make a call to set up an appointment to tour the home you’re interested in.

Once you tour the home and it meets your criteria, current market conditions require that you are willing and able to make an offer quickly on the home. Far too often, a buyer will say “I like that, but I need to think about it for a few days.”  In a few days, the home will be long gone.

When you make an offer on a home and put it under contract, you need to understand there are still several things that must happen before you are obligated to purchase the home. Let me explain…

I always recommend that you have a professional home inspection done. It will give you a great piece of mind in knowing there are no major problems in the home.  You must review the seller disclosure document. This is where the seller tells you everything they know about the home, including potential problems. The home must appraise for the price you offered. You must get a final loan acceptance from your mortgage officer. You have the right to inspect the home before closing to insure it is in the same condition as it was when you made the offer.

If any of these conditions are not met, you are not obligated to purchase the home. So, don’t be afraid to make an offer on a home that appears to meet your criteria.

Do you have questions or need advice you can count on or just want to discuss this further?

Don’t waste any more time; pick up the phone and call me now!  I’m here to help!

I offer a five star guarantee.  I appreciate your business, loyalty, trust and referrals. My goal is to provide the very best counsel and advice to meet your real estate needs. If I can assist you, a relative, friend or co-worker, please give me a call. I look forward to the opportunity to serve you.

For prompt, courteous, professional service, call Larry Andrew:

I offer a five star guarantee. I appreciate your business, loyalty, trust and referrals. My goal is to provide the very best counsel and advice to meet your real estate needs. If I can assist you, a relative, friend or co-worker, please give me a call. I look forward to the opportunity to serve you.

For prompt, courteous, professional service, call Larry Andrew: