Buying a home, whether it’s your first one or yet another place that you’d like to move to, is an emotional and confusing process. Many buyers commit serious mistakes that prevent them from discovering the ideal property or that make them purchase the wrong house.
What does it take to assess property adequately and be 100 percent confident in the purchasing decisions that you’ve made? The following list of tips will make it easier to inspect, assess the property, do a valuation and negotiate with the seller.
Know What You’re Looking for
This is a step you have to complete before getting started with the property purchase process.
Determine your needs and preferences in advance. By having a clear idea about what you’re looking for, you’ll narrow the options down. You have to act fast and be completely confident in the choices you’re making. Those goals can’t be accomplished if you’re oblivious about the characteristics of your ideal home.
Are you looking for a bigger or a smaller house? If you have children, the proximity of a school and a park will also be required. Would you like to have a big backyard and a swimming pool? Are outdoor activities something that you’re interested in?
These are just some of the questions you’ll need to ask but there are many others. Is energy efficiency important to you? Are you going to attempt saving some money by opting for a fixer-upper? If necessary, take some time to do research and figure out what you want before you begin looking. You may even want to draft a list of criteria. Sharing those with your agent will result in much more relevant suggestions.
You’ll also have to figure out how much mortgage you qualify for. This number will be determining for the property price range that you’ll be capable of affording.
Many lenders have mortgage calculators that their potential clients can use online. Though far from 100 percent accurate, they rely on some personal input to give you an estimate about the amount you’ll be capable of obtaining. The debt that you already have, credit history and your current income are some of the factors that impact mortgage calculations.
You should also get pre-approved for a mortgage before getting started with the process. Qualifying for a mortgage is one thing. Getting approved and being granted access to the funds by a financial institution is completely different.
Pre-approvals will save you a lot of time. For a start, you’ll have a very specific idea about the amount of money you can dedicate to the purchase. Knowing the number will keep you from exploring houses that are simply out of your price range. Once again, doing the preparatory work before getting started can actually speed up the house inspections significantly.
Hire the Right Professionals for the Job
Property buyers will benefit from the interactions with two professionals – an experienced agent and a real estate inspector.
A real estate professional that has a really good idea about the market will help you pinpoint the best offers and discover your dream house quickly. Look for a realtor that has been in business for multiple years and that has extensive knowledge of the different neighborhoods and the types of houses being sold there.
An experienced agent will also help with the negotiations and all of the paperwork that will be necessary to make the house your own. This is your consultant and your guide. You can go to this professional with questions and insecurities. If you’ve chosen the right person for the job, you’ll get the answers that you need.
The second professional that can make things a whole lot easier is a property inspector.
A home inspector is capable of examining multiple house components, assessing the condition of the property and telling you whether you’re getting a good offer. Property inspectors most often focus on safety, major and minor defects, items that have to be replaced, plumbing and electrical issues and items that are currently in acceptable condition but should be monitored.
Why exactly do you need a professional inspector? The answer is simple – you aren’t trained to identify many problems. In addition, these could be hidden underneath a fresh coat of paint or a brand new accessory. You could end up spending a large amount on a house that simply isn’t worth it.
Making an Offer and Negotiating with the Seller
Once you’ve identified the house that you really want, you’ll have to move on to the next part of the process. This one is as important, as looking at houses and having them inspected.
With the help of your real estate agent, you’ll have to determine what your initial offer is going to be. Your first offer should also list any terms and conditions you may have for making the purchase. Before moving on to potential negotiations, you’ll present the offer to the seller (via your agent) and wait for a response.
Chances are that the seller will have some objections. This is when the final negotiations will have to take place.
It’s very important to remain flexible and to listen carefully to everything that the seller is demanding. If both parties hold on stubbornly to their initial demands, it will simply become impossible to close the deal.
This is your opportunity to ask additional questions, show the seller any evidence of problems that you’ve found and reach a mutually-beneficial decision. Sometimes, the seller isn’t going to make a compromise, no matter how hard you try. It’s very important to know when to push it further and when to move on. If you dedicate too much time to an offer that simply isn’t the right one, you’ll potentially miss on other (much more attractive) listings.
This is it! Knowing what you’re looking for an enlisting the help of the right professionals can both contribute to a much faster process. Remember one final thing – there’s a lot of competition among the sellers but there’s also serious competition among property buyers. The best offers will be snatched off the market incredibly fast. Do your research, determine what you’re looking for and start acting! The more organized you are, the easier it will be to buy that dream house.