Real Estate Tips
Accepting An Offer Know Your Price Range
As a homebuyer, you may have found the perfect new house for your growing family, but what if it is a little out of your price range? You might list your current home for more than it is worth and be lucky enough to find a qualified buyer who is willing to pay the price, but it is impossible to know in advance what your home will sell for.
If you want to sell your home quickly, have a frank and detailed conversation with your real estate agent to determine the best price for the house. Setting your price within 5% of the fair market value of your home greatly increases your chances of getting solid offers that will result in a relatively quick sale.
Don’t buy and sell so close to your target amount that you become anxious when the numbers don’t meet your expectations. There may be other approaches, such as adjustable rate mortgages or owner financing, to increase your buying power and get you into that new home. When you are selling one home and buying another, you will need more than good luck. You will need a highly professional and experienced real estate agent who can give you solid advice on how to make the transaction work for your particular requirements.
Interest Rates – Second Home Financing
You have returned every year to your favorite vacation area, and have finally decided to buy a second home in the special place where you enjoy your holidays. It is and excellent time to apply for a mortgage loan to make you purchase.
The climate for second home mortgages is the most favorable in years. Low interest rates and a recovering economy have attracted more buyers than ever before to purchase a second home for investment and vacation purposes. Many homeowners with a strong credit history have been able to qualify for a home equity loan at excellent rates, and have used their equity cash for down payment and closing costs on a second home.
Lending institutions are offering a wide range of affordable home loans. The rule of thumb is that a buyer can qualify for a loan amount based on 28 percent of their gross income. Often repeat buyers discover that they can borrow more than they assumed possible.
If you wish to take advantage of today’s reasonable interest rates to purchase a second home, consult a real estate professional who can help to make your dream a reality.
Accepting An Offer – A Tough Sale
Here is a situation that many buyers have experienced. After searching for weeks, you found the perfect home and you made a very low offer. The sellers responded with a counter-offer which was several thousand dollars lower than their asking price. You came back with a slightly higher bid, and they came down some more. After many days of back and forth, you finally reached a meeting of the minds, and you are very pleased with the results.
If you have driven a hard bargain in purchasing a house, be sensitive to the seller’s feelings as the transaction proceeds. They may be suffering from the impact of a rough negotiation. Try to minimize any additional requests you might make of the sellers. As you move toward your closing date, keep in mind that the sellers may not share your elation. If you are considerate and avoid making excessive demands, you can help everyone walk away from the transaction feeling satisfied with the outcome.
First Time Buyers – The Rewards of Home Ownership
People buy a home for a lot of different reasons. They may want to put down roots in a community and create a sense of stability in their lives. Then there are the financial considerations and the “forced” savings that builds up in the form of equity. In addition, the monthly cost of owning a house is usually much more stable and predictable than renting.
If you are considering the possibility of purchasing a home, contact a knowledgeable real estate agent in your community. An important part of our job is to educate prospective buyers about the potential benefits and responsibilities of renting versus owning a home. We can help you determine your purchasing power and show you the best homes in your price range. We can also give you a side-by-side comparison of the costs of owning a home compared with what you pay for rent. When you fix up your home to suit your needs and taste, you benefit from the added value of the improvements instead of the landlord!
Selling Your Home – Doing What Comes Unnaturally
The most inconvenient aspect of having your house on the market is the constant housekeeping required. Even if you are naturally neat, it requires a lot of hard work to constantly keep your home in top “showing” condition.
Do whatever it takes to make your home shine and to keep it looking beautiful. It may mean getting extra help from the children or hiring short-term professional help. The importance of making a good impression on the real estate agents and buyers who come through your home cannot be overstated. Many interested buyers may call for last-minute appointments to see your home. Buyers may associate a messy home with poor maintenance of the structure, systems and appliances, which can discourage offers or result in a lower offer than the house might otherwise bring.
Working With An Agent – Earning Your Loyalty
When you begin to search for a new home, you will probably encounter several real estate agents at open houses, through friends or from signs or advertisements. Each agent would like a commitment from you to work exclusively with him or her. Is this arrangement in your best interest or is it better to play the field?
There is a universal law that also pertains to real estate agents–you get back from a relationship what you put into it. If you are not convinced that one agent could possibly fill all your needs, you may be overlooking the positive aspects of a one-on-one relationship.
The first step is to find an agent whom you like and trust. Don’t be afraid to discuss your reluctance to work with one agent exclusively, but be open to other viewpoints. You may be pleasantly surprised by the open communication that such an admission will establish right from the beginning! Making a commitment to work exclusively with an agent is part of the formula for success in real estate.
The strongest accountability is in the marketplace. A good reputation and referrals from happy clients are essential to a real estate agent’s success!