1. Do your research. Really look online at websites like MLSLI.com, realtor sites like Remax.com, Coldwell Banker, etc… to see exactly what comparable houses are selling for in the recent past.
2. Offer less than you think the seller will accept. Sellers are not getting a thousand bids on houses anymore. They will consider just about anything and this will begin the negotiation process. The old rule of thumb was that an offer within 15% of the asking price was acceptable and deemed a serious offer. However, that number has now changed to 20%.
3. Make yourself look like a good buyer. Be prequalified for a mortgage so the Seller knows you are serous and ready to go. Have your attorney’s information on hand and a decent downpayment ready to be placed on contract.
4. Never put more than $10,000.00 on contract. We are no longer in the times of 20% down-payments. A $10,000.00 downpayment is sufficient for almost every Residential Real Estate Transaction.
5. Do not put money on a binder. It was common practice that buyers would put a few hundred dollars down when making the offer to show they were serious. This practice is no longer necessary and a buyer in this market would be foolish to put anything down before contracts are prepared.
6. Make sure your attorney does Real Estate Transaction Law on a regular basis. Just because Real Estate Transaction Law is typically non-adversarial does not mean that anyone can do it. There are specific terms in the contract of sale that must be amended to protect your interests. The contract of sale currently in use by most attorneys in New York was drafted many years ago and does not compensate for the current conditions in the Real Estate Market.
7. Get a home inspection. Make the contract contingent upon a home inspection. Use a reputable company, we typically suggest Housemasters because of their nationwide presence, decent pricing, and ease of use. Their reports are thorough and accessible almost immediately.
8. Stay on top of your Lender. Lenders are creating more and more hurdles for borrowers to jump over to get financing. They are arbitrarily reducing appraisal values due to a declining market, asking for additional paperwork and mandating that the borrower remain up to the minute with their documentation. Many lenders want your paystubs, bank statements and other documentation within a few days of when you get them to keep their files current. Of course, the Lenders rarely tell the borrower about this and will all of a sudden threaten to kill the financing unless all the papers are in within 24 hours or some other ridiculousness. Be prepared and save the stress.
9. Make sure you are getting exactly what you are paying for. Make sure that you go to the premises before closing and test everything! (This is called a “walk through”). Make sure the toilets flush, the heat works, the stove works, the fridge is operational, the A/C is running, the boiler and hot water heater are working correctly, the washing machine, dishwasher, etc. Be thorough because once you own it, you own it and the seller is off the hook for most of the issues.
10. Don’t let the lender push you around. Lock your interest rate if you can. It looks as if interest rates are climbing again so be careful to get a good rate and lock it in to protect your payment. Lenders have a duty to make money for their stockholders. One way to do this is to allow approved loans to “float” until the date of closing and then lock in your interest rate. While this was beneficial while rates were dropping, it is not in the borrower’s interest currently. Furthermore, if your rate goes up, your payment goes up, and you may no longer qualify for the mortgage, if you are close to the Debt-to-Income ratios established for the loan program and could be held in default by the seller.

Experience is the key in the purchase of real estate. Where a borrower may buy two or three homes in their life time, their counsel should have closed a hundred loan and real estate transactions. Your attorney needs to be up to speed on the current market conditions, scams, bank policies, title issues and the tricks of the trade he/she can use, as well as those used by all the other people involved, including Seller’s counsel and the lender.