The following are a few of the top ways to make sure you take all of the neccessary steps to ensure your equity really does matter.

1. Don't buy the most expensive home in a neighborhood! It's wonderful when you find your dream home, but if it's the most expensive home on the block you could have a problem. Quite simply, your neighbors' lower home values will dampen yours. Remember, people who buy a $250,000 home usually want to be surrounded by other $250,000 homes, not tiny $75,000 bungalows. If your equity matters, a good way to capitalize on this idea is to purchase a less expensive home in a more expensive neighborhood. The idea here is that as the larger more expensive homes in your neighborhood sell it will bring your property value up, as opposed to the opposite where the smaller less expensive homes will bring your property value down.

2. Always have a home inspection contingency in your offer! it's never a bad idea to make sure that if there is something wrong with the house you have the ability to walk away from the deal without the risk of losing your earnest money. Always hire a professional home inspector to provide you a written report, along with some estimates or a range of repair costs. If the inspection turns up problems that weren’t readily noticeable, you can use it and the ball park estimates for negotiating leverage to get the seller to make the repairs or provide you a commensurate price reduction. In the state of TN a home inspection is important enough that the state actually requires a signature on a page that simply states, “It is in your best interest to get a home inspection." 

3. Try to buy and/or sell when interest rates are low! The amount of mortgage you can afford (and thus the price of the home you will consider) will change as the interest rates rise or fall. A certain asking price may sound expensive to you, but at a lower interest rate you might be able to afford it. You may own several homes over your lifetime, and the factors that will limit or increase the value of the home you will be selling will similarly affect the price of its replacement. Since those factors largely wash each other out, interest rates remain the most important factor.

4. Ask why the seller is moving! Learning as much as possible about the seller’s circumstances is a great way to ensure your equity matters. There may be mutually beneficial opportunities between buyer and seller that may allow for some creative financing and both parties can walk away happy and satisfied.

5. Get pre approved before you look at your first home! Buyers who look at homes before talking with a lender are shopping without a budget. When you talk to a mortgage broker you'll get a better idea of the loan options and the price ranges you can afford. After completing the pre-approval process, you will be a more educated consumer ready to buy a home. Asking for referrals to a few prospective mortgage companies can be a good way to find someone you can trust. Interview prospective loan officers and ask questions until you feel comfortable. You can also click here to view a quick study guide to understanding the basics of mortgages.

6. View your home purchase in the long term! Consider lifestyle changes and family dynamics when choosing your home.  Are you running a home based business or do you have kids in your future plans? There are costs associated with buying and selling a home and these costs quickly eat away at any equity so be sure to plan accordingly and buy the right size home.

7. Find out as much as you can about the monthly expenses for a certain home! Everybody knows that energy is expensive these days and when your equity matters it’s a great idea to call the company that provides electricity or gas for a particular home, and ask them to give you a running 12 month average. Although this number is quite subjective and dependent on the lifestyle of the user, it is a good way to get an idea of what your heating and cooling bills might be, especially if there are extremely high or vaulted ceilings in the home.

8. Make sure you give the closing enough time to happen! In a perfect world, all real estate transactions close on time. In the world we live in, transactions are often delayed a week or more. Suppose you asked your landlord to terminate your lease the day your purchase transaction was scheduled to close. A day or two before your scheduled closing date, you discover your transaction is delayed a week. In a perfect world, no one is inconvenienced and your landlord is willing to work with you. More likely, however, your landlord is inconvenienced and angry. Will you be thrown out? Will you have to find interim housing for a week or more? In all actuality timing throughout the entire real estate transaction is critical, as many times certain steps have to be taken at certain times or the entire deal may be at risk. Sometimes earnest money may become non refundable, or extra costs may be added to closing. When your equity matters make sure you choose an agent that can coordinate all the different factors at play, so that nobody gets left out in the rain.

9. Communicate with your Realtor! Lack of communication between a buyer and thier agent can be very frustrating for both the buyer and the agent. If you are under a buyer's contract than your agent works for you. Why would you leave out information that can help him or her give you the best service possible? Include all areas where you want to live. Specify whether a certain set of criteria is a "must have" or if it's just an extra. If you tell your Realtor that there is no way you'll buy a home that has less than 5 bedrooms, why would you call and ask to see a three bedroom. If You specify to your agent that you need a minimum of a 1/2 acre lot, don't be upset that they didn't show you the 1/4 acre lot down the street. (Help me, help you)

10. Always have an emergency fund! Having a down payment saved is more important than ever to qualify for the best mortgages. That being said, it’s unwise to spend everything you have just to get into your home. If you do spend all your cash on the down payment, you’ll have a house, but nothing left to make improvements, fix things if they break (and believe me, houses break), or even make your mortgage payments if you lose your job or face other expenses. Keep your down payment savings and your emergency fund in separate accounts, and don’t take the plunge into home ownership until you have both

A promise to my buyer's:

• I promise to always put your interest first and foremost.
• I promise to give you my honest opinion under any circumstances, always trying to put myself in your shoes, and guide you in the best direction possible. If I tell you it's a good deal than in my opinion it is. If I tell you the price is low and I don't think a certain property will last long than you can bank that more than likely it will go fast and it will sell close to the list price.
• I promise to provide you with all the information I possibly can so that you can make an informed decision on what's best for you and your family.
• I promise to answer all of your questions about the local market area to the best of my ability. Not just about homes for sale, but about schools, neighborhoods, the local economy and more.
• I promise to never "sell" you on a certain home. I work for you. and will strive to get you what you want, whatever it is.