So you are in the market for a buying a house. What’s next? 95% of people begin their home search online but after that don’t have a clue about what to know when buying a house.
After doing some initial searching the next step typically is to sit down with a real estate agent and it’s often someone that was referred over to them. A great real estate agent will make the process of purchasing a home a smooth transition. However, what can you do before meeting an agent to ensure that both parties are using the most of their time? Here are a few tips to consider.
Have you met with a mortgage officer yet? The first step you should absolutely do is meet with a mortgage officer and get yourself pre-approved. Getting yourself pre-approved makes the process a lot easier especially once you begin looking for a house. You will know what price range to look at and the different areas in your city to target.
Are you working with an expert agent in the area? Real Estate agents have a great deal of resources at their disposal that the general public does not. Working with an agent that is looking after your needs, can identify what your looking for, and can present offers strongly in your favor in a competitive market is very vital in getting you into a house.
Have a nice size earnest money deposit ready. Earnest money deposit is a great way to stand out from the competition in a bidding war. In a competitive market putting down $2,000 to $3,000 may not seem very much and sellers are likely to not take you too seriously. However, having anywhere between $8,000 to $12,000 makes you very attractive and tells the seller that you are not likely to walk away from that large sum of money. Even if you offer a price that is a little below from what your competitors are offering, if you have a large deposit in place sellers will likely go with you because you are the more serious bidder and the strongest.
Be careful with love at first sight. Do not fall in love with the property until you get the keys to the house. I’ve seen countless times people put an offer on a property that they fell in love with at first sight only to find out the house had some foundation issues and where not able to purchase it. Even if you find your ideal perfect house, have your contingencies in place for a thorough inspection and if problems arise with the house that are big ticket items such as the roof, foundation, or sewer connections don’t run away from them, use them as bargaining tools. Sellers know they have to disclose items once they are discovered so just work with them and come up with a solution.
Have an understanding of the area you are targeting to live in. Get to know your target market area. How far away is it from your work place and are you comfortable with the distance? If you have kids, what school district are you in and are you comfortable with that school distract?
All these line items are not the end all to be all to buying a house but they do serve as a great way to do some homework prior to purchasing a home. They will make your life a little easier and will also extremely help your real estate agent provide the best service to you if you can communicate this information to them.
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