Learn all you can about the home buying process. Engaging the services of a good REALTOR, who will help you step by step, is a most important decision to make. Your next most important step is to visit with a lender to begin the qualification process.
Tip#2
Get yourself financially approved by a mortgage lender. The lender with work with you to determine the right amount of a mortgage for you. That will, in turn, help you and your REALTOR determine the price range of homes to consider.
Tip#3
Fixed rate vs. variable rate Mortgages? Which one should you choose? If this home is yours for a short time, then a variable rate may be the best type of loan for you. If this is a long-term purchase, then perhaps the fixed rate is better. In any case, you must thoroughly review the closing costs of each loan application. Such costs vary from lender to lender—from $1200 to $4,600 for the same priced home. Check it out ahead of time.
Tip #4
FHA vs. Conventional loans?. Ask your lender to clarify the benefits of each program. You may find that one program is better for you than the other.
Tip #5
Consider signing a Buyer’s Agency agreement with your designated REALTOR.
When you commit to work with one agent only, you get the dedication and full attention of that REALTOR. The Buyer’s Agency agreement outlines to responsibilities of both parties during the home buying process. Ask your REALTOR about it.
Tip#6
Study a variety of neighborhoods. You will want to determine which neighborhood fit your criteria for the “right place for you”. Driving around and visiting various areas is one good way to learn about your city. Another way is to talk to people living in the neigh hood.
Tip#7
Make sure that you plan for ongoing maintenance and repair of your new home. Your budget should include money for equipment to property maintain your new home—like lawn mower, ladder, broom, cleaning supplies, and so on. Your budget should include money each month for minor repairs like plumbing leaks, touch-up painting on windows, small electrical repairs, etc. You should also maintain a fund for long-term major improvements for such things as furnace, water heater, roof, new siding, windows, air-conditioning, etc. By taking such a proactive approach to maintenance and repair, your home will retain its value over time.
Tip#8
Before you begin the search—make a list of amenities you want in you home—like fireplace, 1,2 or 3 car garage, one story or 2 story home, brick, vinyl or frame exterior, and so on.
Tip #9
Get a professional home inspection. The expense (about $275) is essential for anyone who doesn’t want to spend thousands of dollars for unexpected repairs. The home inspection will verify for you the condition of the home. Only with this information can you make an informed decision about the value of the purchase.
Tip#10
Consider a Home Warranty Plan, which is a service contract, normally for one year for about $375, which protects homeowners against the cost of repairs on systems and appliances that break down due to normal wear and tear. The contract has a deductible (usually $50 or $75) for each house call. The contract does not cover pre-existing conditions. That means that if the water heater did not work prior to closing, the insurance will not cover the repair, replacement of the broken water heater.
Tip # 1
Price your home correctly. It sounds easy, but it is not. Gathering sales data from public sources is one way. Another way is to hire a REALTORâ to research the Multiple Listing Service and give you the results. You may contract with the agent for the service—from $500 - $1000, depending upon the length of time to prepare. The best advice, don’t overprice your home…While it is overpriced, the people who would have looked at your home do not, because it is out of their price range. When you finally lower the price, they have already bought another home.
Tip # 2
Sell your home during a Seller’s market—a time when there are more Buyers in the market that there are homes to purchase. That makes your home more valuable. . In a Buyer’s market it is harder to sell the home yourself, because there are more homes than Buyers, and they won’t go to the trouble of trying to find your home.
Tip#3
Market the home yourself, if you have the time to learn how to use existing resources in your area. There are many private local organizations that offer assistance. If you cannot devote the time needed, better to contract with a Broker and utilize the Multiple Listing Services of your local realtor association.
Tip#4
If you use the services of a REALTOR-Broker, use one with a good track record with experience. Check the support from the Brokerage staff and the advertising materials/vehicles used by the company. Ask questions regarding marketing strategy and project management of details.
Tip#5
Prepare your property for sale. It must look as nice as it can look. Get rid of clutter, clean and repaint with neural colors. Open window treatments, clean all glass/light fixtures, and update dated areas, especially bathrooms. Make it shine, shine, shine.
Tip#6
Especially in a Buyer’s market, consider Seller financing. You can ear a considerably higher interest rate that the regular market offers for traditional savings. Since the second mortgage gets paid after the first mortgage, it makes sense to check the financial background of the buyer and demand a substantial down payment to protect against the risk of foreclosure.
Tip #7
Study and learn as much as you can. You can do anything a REALTOR can, if you have the time, talent and inclination to do the work needed. You need to know enough to be on control of the process, or hire someone to help you with the process.
Tip#8
Study up and learn which real estate forms to use, contracts, disclosures, etc. Or contract with a good real estate attorney to assist you. Better yet, hire a professional REALTOR who is trained to know which forms to use, when to use them and how to fill them out.
It is important to use an attorney whether or not you use a REALTOR. The combined expertise of the two professionals will provide you with the best protection.
Tip #9
Pre-qualify your Buyers. Learn the difference between a Buyer who is pre-qualified, pre-approved and approved, subject to certain conditions. It is important to know that your Buyer can truly afford to buy your property. Verify all financial information with the Buyers’ lender, or better yet work with a trained REALTOR to verify the financial qualifications of the Buyers with their lender.
Tip #10
Learn about Fair Housing Laws and how they affect you. Remember, you may not discriminate against certain protected classes in your advertising.
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