Pre-requisites
- Need to proof 20% in bank
- get pre-qualified by bank for mortgage loan
imporyant to note that mortgage might not be granted even if pre-approved
To Maker offer
- Make available escrow ernest 1% down
- Longer property is listed on the market, the lower the price we are to offer
- Can withdraw Ernest 1% down anytime within the 14 days period
- make sure to check how refund is handled
Escrow process
- starts as soon as seller accepts offer
- 14 days for completion
- Paperwork 1: Assessment by bank
Comparison of closing price for similar houses in the neighborhood to make sure they are not financing mortgages above actual valuation of the house
- Paperwork 2: Inspection
Check to find out if there are any structural problems
Getting mortgages
- Avoid dealing with mortgage brokers
- Deal directly with the bank for better rates
On negotiation:
- It's ok to always ask for anything, the worst thing that u will get is a NO
Different buyers have different decision making process. They consider different things
- Analytical profiles -
determines key matrix fast and makes decision fast using decision tree modeling.
- Example
Save cash here,
- tear down wall and
- room there to make space
- Others slower:
consider the size of rooms too small
- cant see pass what is currently there to what could be there
Dealing with Game Theory situation:
- Make offers for multiple properties
- withdraw lower ranking offers as soon as higher ranking offer is accepted
source: Rommel, my Chiropractor