Thursday, November 30, 2006
Real estate is a growing business today. Buyer and seller in this market are rapidly augmenting. Hence in this competitive market one needs to be very smart when buying home to fetch huge profit in future. The following are few genuine tips to become a smart buyer.
1) First pre-approve for a mortgage before you go for an offer. When you desire to buy a house in this competitive market, your offer to purchase should contain as few conditions as potential. An offer, which is more conditional on obtaining financing, is often a deal killer. The seller might prefer going for a competing offer rather than taking a risk that you won't be able to raise mortgage money. A pre-approval letter from your lender states the seller that you are ready and able to commit.
2) You should know when to quit. When you act on emotion, rather than acting on reason, you might also end up paying too much money. This could even happen when you fall in love with a special house and start imagining about how great it would be to live there. Another reason you might be driven to pay too much is that a request war activates your competitive instincts that you should buy the house at all costs which you would regret later.
3) You need to keep enough money aside to cover closing costs without having to relinquish in few months. You've to put together a down payment. Be aware that there could also be a long list of expenses you might have to pay for closing, depending on where you stay and who your lender is. Get your real estate agent to accumulate a list of it.
4) Do insist on a home inspection. The one condition you always need to include in an offer to purchase is a home inspection. Find out how much it would cost to fix any particular defects and have the seller fix them before you agree to purchase or deduct the estimated cost from the actually price you offer. If the seller would not bear the costs and you may want to go ahead with the purchase, make sure you could even afford the necessary repairs on top of your mortgage.
1) First pre-approve for a mortgage before you go for an offer. When you desire to buy a house in this competitive market, your offer to purchase should contain as few conditions as potential. An offer, which is more conditional on obtaining financing, is often a deal killer. The seller might prefer going for a competing offer rather than taking a risk that you won't be able to raise mortgage money. A pre-approval letter from your lender states the seller that you are ready and able to commit.
2) You should know when to quit. When you act on emotion, rather than acting on reason, you might also end up paying too much money. This could even happen when you fall in love with a special house and start imagining about how great it would be to live there. Another reason you might be driven to pay too much is that a request war activates your competitive instincts that you should buy the house at all costs which you would regret later.
3) You need to keep enough money aside to cover closing costs without having to relinquish in few months. You've to put together a down payment. Be aware that there could also be a long list of expenses you might have to pay for closing, depending on where you stay and who your lender is. Get your real estate agent to accumulate a list of it.
4) Do insist on a home inspection. The one condition you always need to include in an offer to purchase is a home inspection. Find out how much it would cost to fix any particular defects and have the seller fix them before you agree to purchase or deduct the estimated cost from the actually price you offer. If the seller would not bear the costs and you may want to go ahead with the purchase, make sure you could even afford the necessary repairs on top of your mortgage.
posted by real estate @ 10:57 PM
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