Home Buying Dos and Don'ts

Written by Posted On Tuesday, 10 December 2013 07:05


There might not be a perfect way to purchase a new home, but there are some good ways to approach any large real estate transaction. The important thing to remember is to remember that you are the buyer during each step of the process. All other parties are hoping to profit when they close a sale, and you are the one who is putting up the money.


There is no Perfect Time to Buy


If you try to time the market to find the perfect combination of loan rates and home prices, you will probably just get frustrated. The best time to make a purchase is when you find the right house and home loan for your needs and budget.


Avoid Professional Relationships with Friends and Family


You are free to take plenty of advice from friends and family. They may have some very good suggestions about neighborhoods, schools, and home features. However, you cannot be certain that your cousin or brother who happens to be a loan broker or real estate agent will always have access to the best deals.


You will be likely to get the best price on your home and lowest loan interest rate if you are free to shop around, and that can be uncomfortable if you use your friends and family as real estate professionals.


Understand Seller's Motivations


Even though the amount of money that a seller still owes on their mortgage has nothing to do with the value of a particular house, it might have a strong bearing on the seller's ability to bargain with you. Additionally, sellers who are eager to move might be willing to drop the price. If you can get a feel for the seller's motivation and situation, you are much more likely to be able to negotiate on the price and other terms.


Don't Fall in Love


Try not to fall in love with any one house. Of course, you might have emotional reasons for wanting to purchase a home in a specific area. There might be intangible reasons why one or home or another is more valuable to you too. But you are much more likely to make a good deal if you handle the transaction logically.


Get Pre-Approved for a Loan


It is always a good idea to get a pre-approval letter for any house you plan to purchase. Even though pre-approvals are not set in stone, they can give you an idea of how much you can afford and what your costs will be.


Get Appraisals and Home Inspections in Advance


Get an objective appraiser to tell you how much the home is worth. Lots of sellers assume their houses are more valuable than they really are. Also, be sure to get the home inspected. That way, you will know about any problems like cracked slabs or ancient heating systems before you make an offer.


Make the Right Offer on the Right House


Make an offer on any house you want to purchase that is based upon your own research of the market value. Do not make an offer based upon the selling price or fear you will not be able to purchase the house.

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