The purchase of a home is probably the single greatest financial transaction you will ever make in life. Moreover, because you are only likely to buy one or two houses in your lifetime, there is a good probability that you will make a lot of wrong decisions during the process. After all, no one is born an expert in buying property.
Here are a few pointers for becoming a sensible homebuyer and making the most of your experience, whether you are purchasing an inner-city apartment or suburban residences.
Locate the most competent real estate agent.
While it is possible to purchase a home without the assistance of a real estate agent, it is usually more advantageous to call a good one who can guide you through the entire process. The practice of asking friends and family for referrals is a great way to find reliable and trustworthy agents. It is also possible to locate a realtor by looking online at their websites and looking at reviews. It is vital to collect references from prospective realtors, irrespective of how you came across them in the first place. The most reliable predictor of whether or not a realtor will offer you good service is whether or not their prior clients were pleased with their services. A lack of reviews can be a real red flag.
Make sure you can afford it – and have proof
You must be able to show a vendor that you will be able to procure financing for the purchase of their property. If you attempt to make an offer on a house without providing evidence that you can afford it, your chances of being passed over for the next buyer are greatly increased. Obtain preapproval for a home loan before submitting an offer letter to ensure that you are eligible for one. It is an official letter provided by a mortgage lender that verifies the amount of financing you are eligible for and notifies sellers that you have been authorized for the property you are interested in. Your lender will perform an inquiry into your income, assets, and credit history prior to giving your letter of credit approval. In order to offer you the most accurate quote possible, the lender will gather as much information as possible about you.
Find out as much as possible about the market beforehand
It is more difficult to negotiate if a large number of buyers have expressed interest in the property and there are multiple bids on the table. If the real estate market in your area is slow, you will have more leeway to negotiate reductions, such as a lower price or repairs that are not included in the purchase price. A second area in which your real estate agent will be a valuable asset is during the negotiation phase of the transaction. Your agent can do an analysis of the local market and consult with the seller or the seller’s agent in order to decide the most appropriate line of action. If you can gain a better understanding of the vendor’s motivation, you will have a better chance of negotiating with them. It is possible to negotiate a lower price if a home has been on the market for an extended period of time and the seller is motivated to sell. If the seller has already received a number of offers on the home in which you are interested, you will need to submit a higher offer right away, else you will lose out.
