The home-buying process does not have to be riddled with complexities or unknown information. By taking time to prepare yourself for the home purchasing process, you are empowering yourself with knowledge to ensure you have clarity in your goals, understand your negotiating power and ultimately are able to buy the house of your dreams. Here are 7 tips that can help you succeed in buying a new home.
1. Consider Hiring a Realtor
The first step you want to consider doing is hiring a relator to help you purchase your ideal house. There are many realtors out there like Select Sotheby’s. Be sure to consider where you are planning on buying a house, which will help you consider which realtor you want to hire. So whether you are looking at real estate in upstate New York or in Northern California, you want to make sure that the realtor you hire has knowledge about the houses and the area you are looking to purchase in.
2. Get pre-approved for a mortgage to make the search process easier.
First, obtain a pre-approval from a lender for a mortgage. This can give you greater negotiating power, because a seller will know that you have the financing needed to close on the transaction. You will also know the maximum amount of “house” that you can afford.
Second, you should make sure that you get an inspection of the home. Don’t rely on the inspection that a seller provides, because he or she may work with a particular inspector that has the seller’s interests at heart. Hiring your own inspector ensures a greater likelihood that any hidden defects will be uncovered.
4. Calculate the total cost of living in the home, including taxes, insurance, utilities, association fees and other expenses.
Understand the total cost associated with living in the home. This will give you an accurate reflection of whether you can truly afford to purchase the home.
5. Understand your bargaining power.
If you do find defects in the home, then this may enable you to negotiate for a reduction in the home’s price. If the home has been listed for months, then this may also be a sign that the seller is desperate to sell the home. You can use this information to your advantage in negotiating a lower price.
6. Leverage your bargaining power to negotiate with the real estate agent on a favorable price.
Make a list of all of the points that support your bargaining power, and present these points to a real estate agent. Having this list will make it more difficult for a real estate agent to refuse to reduce a price.
7. Consider the long-term investment of the home.
If a home is a little more expensive than you would like, then you should consider whether the home will offer long-term investment opportunities for you. If a home is located near the beach or in a favorable school district, then these could be factors that tremendously impact the home’s value.
8. Agree on a closing date and sign the land sale contract.
Make sure that you agree on a closing date with the seller. Also, ensure that both parties sign the contract to ensure the contract meets Statute of Frauds formalities.
These tips can help you feel more comfortable in negotiating with a real estate agent. They will also facilitate the home-buying process and make it easier for you to achieve your goal of home ownership.