5 Important Tips For Home Buyers

As spring approaches and you may be looking to buy a home. Purchasing a home comes with its own set of “unwritten rules.” Conventional wisdom and considered opinion have long led us to believe you never make an offer on the first home you see, or you always close at the end of the month.

In actuality, the only rules you have to follow relate to mortgage fraud (one might regard them more as federal statutes than rules). Home buyers and real estate agents routinely flout common “Never this or that” industry truisms when the need is there.

But make no mistake. While there aren’t any hardcore “rules” to follow, there are absolutely best practices and general guidelines that you should carefully consider. Here’s a look at five big ones.

1. Don’t Make an Offer Without Pre-Approval

Getting pre-approved means a lender has run your credit and financials and is so far willing to move forward with your loan. A pre-approval letters details your purchasing power and provides sellers and real estate agents a degree of confidence that you are a financially solid buyer.

Most savoy agents would never accept an offer without a pre-approval letter.  People are much more aware today how important it is to have a qualified buyer. Without an actual pre-approval, you’re really spinning your wheels.

So do you talk first with a real estate agent or lender? Either way, you may not want to start touring homes or making offers without a pre-approval letter in hand.

2. Use a Real Estate Agent For most home buyers, buying a home is the biggest purchase they’ll ever make. It’s something you’ll do maybe a handful of times in your life. It can pay to have an expert in your corner (who doesn’t cost buyers a dime to use). Real estate agents show homes, negotiate contracts and close deals regularly. They can help identify red flags and potential problems, all the while working to best match up properties to your particular needs. The Internet has certainly helped in making the homebuying process more transparent. But consumers should still want an industry professional on their side. Nearly 90% of home buyers use a real estate agent or a broker, according to the National Association of Realtors.

3. Put Down Earnest Money It’s customary, to provide a deposit when you make an offer on a home. Known as earnest money, this deposit is typically 1- 2 % of the purchase price. It gets deposited into a neutral escrow account upon offer acceptance. Consult with your real estate agent regarding the right amount. Earnest money follows in line with loan pre-approval – it’s another way to show a seller you’re a serious, qualified home buyer. Your agent will include contingencies in the sales contract that allow you to recoup the deposit in case the deal falls apart. Common reasons might include a bad appraisal, home inspection issues or your inability to sell your current home.

4. Sell Yourself

Don’t just submit a solid offer and cross your fingers if you’re shopping in a competitive (sellers) real estate market. Take every opportunity you get to tell your story and sell yourself.

Include a typed (or better yet-handwritten) letter with your offer. This will convey your admiration for the property and your hopes and dreams to the sellers

If you really want a property in a competitive environment or you need some special conditions, the personal touch still works. Sellers don’t always just want to get the most proceeds out of their house. Many sellers also want to know this is going to a good family.

5. Tour Homes in Person

Mobile video technologies like Google Glass is bringing in a new era for home tours. Cool tech and new apps can be a huge help for consumers moving to new states or service members purchasing homes during a deployment.

These tools will continue to be a great supplement the shopping experience. But nothing compares to the in-person experience.

For more information on this topic:

619.384.2248
Ryan@RyanYourRealtor.com
You can leave a response, or trackback from your own site.

3 Responses to “5 Important Tips For Home Buyers”

  1. ig says:

    Wow, superb blog layout! How long have you been blogging for?

    you make blogging look easy. The overall look of your website is great, let alone the
    content!

  2. ig says:

    Woah! I’m really enjoying the template/theme of this blog.
    It’s simple, yet effective. A lot of times it’s very hard to get that “perfect balance” between superb usability and appearance.

    I must say that you’ve done a very good job with this.
    Also, the blog loads very quick for me on Safari. Outstanding
    Blog!

  3. ig says:

    Hi there! This is kind of off topic but I need
    some help from an established blog. Is it very hard to set
    up your own blog? I’m not very techincal but I can figure things out pretty fast.
    I’m thinking about making my own but I’m not sure where to
    start. Do you have any points or suggestions?
    Many thanks

Leave a Reply

This theme is sponsored by California along with Texas, Radio and corporate office contact address
Sitemap