Buying Real Estate - Insider Tips
Buying real estate is a great investment…especially in our current market. It’s a “buyer’s market” that almost guarantees a financial savings for the buyer. Here are a few common-sense guidelines if you’re looking for the best home to buy:
First…you must decide how you will pay for it? Will this be a cash transaction? Or do you need financing? If so, now is the time to check your credit report for any problems…correct them…and pre-qualify for the mortgage loan. If you plan to live in the home, you can usually get buy with 3-5% down (depending on your FICO score). But, you will need a minimum of 20% down if you are purchasing the property as an investment. Also, you will be in a better negotiating position if you have a letter from your lender stating at you are qualified for the financing.
When buying real estate, be sure to find a good Exclusive Buyer’s Agent to help you locate the property. This agent can be your best friend because they have the knowledge and easy access to data that’s hard for you to find.
When you actually start house-hunting - consider these tips:
• Drive through neighborhoods and see which ones appeal to you. Will this area have a good chance of increasing in value?
• Make sure you don’t buy the largest house in the neighborhood. It’s much better to buy the smallest house in a better neighborhood.
• Depend on your Exclusive Buyers Agent to provide the facts such as comparables, Percentage of homes that are owner occupied, Days on Market… that you will need to make an informed decision.
• Remember that the seller is required by law to tell you about any defects that they are aware of. Read all the disclosures thoroughly.
When you get ready to make the offer…it’s wise to follow the advice of your buyer’s agent, because it’s based on years of experience in the marketplace.
If you can find a distressed property - you may get a much better deal if you can buy it BEFORE it goes into foreclosure.
Buying real estate can be fun if you have a game plan and know the facts!
