Why use a Buyer’s Agent

Find an agent who represents you and not the seller. This is beneficial during the negotiation process. If you are working with a buyer’s agent, he or she is required not to tell the seller of your top choice. In addition, he or she is also focused on getting you the lowest asking price.

Why You Should Not Make Any Major Credit Purchases

Don’t go on a spending spree using credit if you are thinking about buying a home, or in the process of buying a new home. Your mortgage pre-approval is subject to a final evaluation of your financial situation. Even if you have accumulated enough savings, you should consider not making any large purchases until after closing. The last thing you want is to know that you could have purchased a new home had you curbed the urge to spend.

Getting a Legitimate Lender and Getting Pre-Approved

Most lenders can pre-qualify you for a mortgage over the phone. Based on general questions about your income, debt, assets, and credit history, lenders can estimate how much mortgage you qualify for. However, being pre-qualified and pre-approved are different things. Pre-approval means that you have applied for a mortgage; you have filled out the mortgage application, received your credit report, and verified you employment, assets, etc. When you are pre-approved, you know exactly what the maximum loan amount will be. A pre-qualified letter is not verified and in essence, does not count for much if you are competing with other buyers who are pre-approved. When you are pre-approved, you and the seller know exactly how much house you can afford. It gives you credibility as an interested buyer and lets the seller know immediately that you will qualify for a loan to buy their property. In addition to being pre-approved, it’s important to be pre-approved with a legitimate lender. Legitimate lenders include: banks, mortgage bankers, credit unions, savings and loan associations, mortgage brokers, and online lenders. Some lenders to avoid: those who lose a form or misplace a file, those who gather information from you in an unorganized manner, those who are not informed about interest rates, points or costs, and those who cannot provide you with the right information.

Finding the Right Seller

The best seller is one who is highly motivated. A highly motivated seller is more likely to sell for less than his or her house is worth. And it matters that you find out why; learning the reason why can help you get the price you want and help the seller get what they want: a timely sale.

Build a Plan of Action and Get Ready

Buying a home will probably rank as one of the biggest personal investments one can make. It is important to anticipate the steps required to successfully achieve your housing goal and to build a plan of action that gets you there. First, ask yourself how much can you afford to pay for a home. If you’re not sure on the price range, find a lender and get pre-approved. Once you are pre-approved, you avoid the frustration of finding homes that you think are perfect, but are not in your price range. Second, ask yourself where you want to live and what is the best location for you and/or your family. Things to consider:

• proximity to work, school
• crime rate of neighborhood
• local transportation
• types of homes in neighborhood, for example; condos, town homes, co-ops, newly constructed homes, etc.

 

Importance of Inspection

A professional home inspection is something you MUST do, whether you are buying an existing home or new one. An inspection is an opportunity to have an expert look closely at the property you are considering purchasing and getting both an oral and written opinion as to its condition. Make sure the report will be done by a professional organization, such as a local trade organization or national trade organization such as ASHI (American Society of Home Inspection). Not only should you never skip an inspection, but also you should go along with the inspector during inspection.

Avoiding Financial Stress

Before speaking with a lender, know what monthly dollar amount you feel comfortable committing to. Do not put yourself in the position where you will be paying more each month than you intended simply because the “dream” house requires it. Do your research on the types of mortgages available to you and find the one that best suits your needs.

Getting the Highest Price in the Shortest Time

The most important factor of marketing your home is pricing it right. Your price should be adjusted to reflect the market, and the property’s worth. The key is to get many people checking out your property at a fair price instead of having no buyers because your price is set too high. Another important factor is the condition of your home. Make sure that your home looks ready to be sold. Fix any defects (peeling or faded paint, cracks, stains, etc.) Condition alone can sometimes prompt fast buying decisions. Also, consider upgrading your home by making major repairs and cosmetic improvements before selling. A nice looking home triggers the emotional response that an lead to a financial response. Lastly, get the buzz out about your home. List your house with an agent that ensures your house is listed on the MLS, and on the internet. On your own, get the word out. It should be visible to passerby’s that your house is for sale, whether it be signs, local advertisements or you telling friends, family, and acquaintances.

Making a Good First Impression

A good first impression can influence a buyer into making an offer; it influences a buyer emotionally and visually. A bad first impression weighs in as deeply. Don’t show your property until it’s all fixed up. Ask around for the opinions others have of your home. Real estate agents who see houses everyday can give solid advice on what needs to be done. What you need are objective opinions, and it’s sometimes hard to separate the personal and emotional ties you have for the home, from the property itself.

Setting the Price

The price is the first thing buyers notice about your property. If you set your price too high, then the chance of alienating buyers is higher. You want your house to be taken seriously, and the asking price reflects how serious you are about selling your home. Several factors will contribute to your final decision. First, you should compare your house to others that are in the market. If you use an agent, he/she will provide you with a CMA (Comparable Market Analysis). The CMA will reflect the following:

• houses in your price range and area sold within the last half-year
• asking and selling prices of houses
• current inventory of houses on the market
• features of each house on the market

Also, try to find out what types of houses are selling and see if it applies to your area. Buyers follow trends, and these trends can help you set your price. Always be realistic. Understand, and set your price to reflect the current market situation.

Finding the Right Agent

The most important attribute of an agent is that he/she is well connected to the real estate industry. He/she should know the market and provide information on past sales, current listings, his or her marketing plan, and at least 4 solid references. In addition, you also want to look for an agent that is honest, assertive, and one that best understands your needs.