Back-Planning For Success

Coming up with new dreams and passions can be fun,Wants list, and price and rank them in order of
easy and inspiring - at least until you sit down andpreference
begin trying to sort out how to actually accomplish*Research recent appraisals, compare to prices
these wild goals. Suddenly, what seemed like such a*View properties in person
clear and well-marked path takes on the aspect of an*Give them priorities list and Wants/Needs list and set
overgrown and thickly brambled wilderness ofup appointments to view properties
dangerous, unseen pitfalls and endlessly branching and*Contract real estate buyer's broker
unmarked trails. It's enough to make you want to crawl*Ascertain loan approval for estimated purchase price
back into your boring old life and forget the whole thingbrackets
ever happened. But let's try something a little different,*Research loan options/providers and chose best (ask
first, and see if we can't tame that overgrown jungle.Mary)
One of the best and most thorough ways to figure out*Budget for down payment and fees
how to do something new is called back-planning, or*Estimate down payment, inspection, legal, brokerage
top-down planning. You begin by listing your finishedand closing fees
goal at the top of the page, then working your way*Estimate property prices in chosen neighborhoods
backward through each logical step that must come*Research neighborhoods based on lists and pick
before the one above it. This is the best way to findfavorites
out early where the gaps are in your information. In*Create priorities list for structures and settings
order to be truly effective, the list needs to be*Create a Needs/Wants list for new home
consistently precise and highly detailed, rather thanAs you can see, the second list is much more
broken up into large, ambiguous steps, any of whichorganized and detailed, and sets out the process in a
may contain many smaller, unknown pitfalls for thespecific, sensible order. Of course, if you already know
unwary. Here are two examples, one bad and thewhat house you want to buy, or already have your
other good, based on the goal of buying a house.favorite neighborhood picked out, you would eliminate
Read them from the bottom up.those steps, just as you would have to change some
Bad Examplesteps and probably add quite a few more if you
Goal: Buy house in suburbsrequired the property for business purposes, etc. The
*Close on house (there may be many steps involvedtrick is to make sure you anticipate every step and
here)sub-step involved, and account for it, so that there will
*Get inspection (how do you go about setting that up?)be a clear progression from start to finish.
*Make choice (based on what?)One important feature of this planning method is that it
*View houses (are they prioritized, is there a list ofassumes success from the get-go. Rather than
qualities?)standing at the starting line gazing out in stark terror
*Research neighborhoods (based on what qualities,over the vast and unfamiliar territory between you and
and in what manner?)your dream, back-planning makes success merely a
Good Examplefinal step in the process and focuses your attention on
Goal: Buy house in suburbsthe nuts-and-bolts of getting there. Once it becomes
*Close on houseobvious that your previously hazy and distant dream is
Step 5clearly achievable through a series of defined and
Step 4reasonable steps, items once thought out of reach
Step 3suddenly fall within your grasp.
Step 2The observant reader will note one other notable
Step 1difference between the two lists. The second list
*Approve and make offer or disapprove and repeatcontains references to friends and acquaintances that
with next housemight be able to help through their contacts, advice or
*Review inspection and legal reportsservices. Friends want to help friends, and having
*Hire real estate attorney to review property legalsomeone on your side who knows the terrain ahead
issuescan not only level the playing field where unhelpful (or
*Get quotes on real estate attorney (see Charlie)even antagonistic) experts and complicated processes
*Hire independent inspectorare involved, but realizing that you don't have to know
*Get quotes on inspections (see Bob and Jackie foror do everything yourself in order to make this
referrals)adventure successful gives you a calming sense of
*Choose top 3 picks based on priorities list, Needshaving it all under control.