As a Stanford Business School MBA Alumnus and a Real Estate Broker, over the years Stanford has invited me to teach seminars to students on home buying strategies. After all, many of the Stanford Graduate School of Business graduates land high paying jobs and are anxious to buy their first home.
First and foremost, I tell the students to:
Always use a proven local real estate agent to represent them in their purchase. A top local agent provides extremely valuable advice and service at no cost to the buyer.
MBA students are trained to think analytically and like checklists. So do I.
This is my summary checklist I share with the students:
• Ask everybody for his or her opinion
• Buy during hot markets (i.e. spring)
• Get involved in crazy multiple offers
• Buy a home with foundation problems
• Buy a home with “major unfixable negatives”
• Do significant remodeling while living there
• Think of your home as just an investment
• Expect perfection
• Have your cash and loan approval in place
• Go online to educate yourself
• Go to open houses to educate yourself
• Buy properties that have been on the market for a long time
• Buy during the slow “seasons”: Typically just before Thanksgiving to just after New Year and the entire month of August (families are on vacation)
• “Go for it” if a home “comes close” to your needs
• Buy the best location you can afford
• Have thorough inspections
• Assume remodeling costs will be 1.5 times your best estimates
• Assume your remodeling time will be twice as long as scheduled
• Plan to own the house at least 3-5 years to net a profit from sale
These Do’s and Don’ts are great for smart home buying, but smartest of all is finding the right agent. In the market for a new home? Check out the Member Directory of the TAN chapter near you.