Buying a home is typically the biggest financial investment that people ever make, so it is important to consider this purchase very carefully. While it can be a difficult and stressful process, there are ways to minimize your frustration and find the most ideal home for you and your family. Here are some home buying secrets and tips that can help you along the way.
Many people get pre-qualified for a loan before they start the home search, but you really need to be pre-approved for a loan. This means that you actually have sat down and met with a lender, and that person has determined an amount that the financial institution will be willing to lend to you for the home loan. The determination for this is based on a careful study of your finances and income over the last few years. Once you are pre-approved, it means that the home buying process can be faster because that step is already out of the way. Another reason to be pre-approved is because it gives you more power when making an offer, as the seller is more likely to agree to your terms if you already have loan pre-approval.
Once that task is out of the way, you need to give some serious thought to what you really need out of this purchase. You also need to think in practical terms, knowing that you probably won't get every single item on your wish list. Finding a great home is not impossible, of course, but you shouldn't expect to fall head over heels in love with a property. Generally, over-enthusiasm for a specific home makes you somewhat blind to its flaws and reduces your power of negotiation. No matter how perfect a home may seem, you need to be aware of problems that it might have and never fall in love with a home simply based on ascetics. You can always redecorate but you cannot move it to a better location and you cannot make the yard bigge,r and often you cannot make the home bigger if you need more space.
When you are ready to make an offer on a home, there are many items to take into consideration before you decide on a purchase amount. You need take into consideration the comps in the area, as well as the location and condition of the home. Comps are important, but they aren't always showing the whole picture. For example, perhaps the home you like has a much better view than the other comps or maybe this home is completely upgraded and move-in ready. On the other hand, maybe the house you want needs some major updating while the competition includes mainly updated homes. Either way, you can certainly always ask less than the asking price, and you shouldn't feel shy about asking for less. Obviously a ridiculously low number would be insulting, but there is no harm in asking for less.
If you cannot get the house for a good price or you find out through inspection that there are costly repairs that you are unprepared or unwilling to make, you need to walk away. Many times people are hesitant to step back and look elsewhere because they really like a house, but you should never be so attached to a property that you won't walk off if it's really what is best for you. Besides, this willingness to leave also sometimes empowers you when it comes to negotiations.
For people looking for homes in San Francisco's East Bay and throughout Contra Costa and Alameda counties, it is a good idea to contact the real estate experts at 1stInSite.com before you begin your search. They can help you find Danville homes for sale, Orinda homes for sale, Walnut Creek homes for sale, Alamo real estate, Lafayette homes for sales, Moraga real estate and homes in all other East Bay cities.
Many people get pre-qualified for a loan before they start the home search, but you really need to be pre-approved for a loan. This means that you actually have sat down and met with a lender, and that person has determined an amount that the financial institution will be willing to lend to you for the home loan. The determination for this is based on a careful study of your finances and income over the last few years. Once you are pre-approved, it means that the home buying process can be faster because that step is already out of the way. Another reason to be pre-approved is because it gives you more power when making an offer, as the seller is more likely to agree to your terms if you already have loan pre-approval.
Once that task is out of the way, you need to give some serious thought to what you really need out of this purchase. You also need to think in practical terms, knowing that you probably won't get every single item on your wish list. Finding a great home is not impossible, of course, but you shouldn't expect to fall head over heels in love with a property. Generally, over-enthusiasm for a specific home makes you somewhat blind to its flaws and reduces your power of negotiation. No matter how perfect a home may seem, you need to be aware of problems that it might have and never fall in love with a home simply based on ascetics. You can always redecorate but you cannot move it to a better location and you cannot make the yard bigge,r and often you cannot make the home bigger if you need more space.
When you are ready to make an offer on a home, there are many items to take into consideration before you decide on a purchase amount. You need take into consideration the comps in the area, as well as the location and condition of the home. Comps are important, but they aren't always showing the whole picture. For example, perhaps the home you like has a much better view than the other comps or maybe this home is completely upgraded and move-in ready. On the other hand, maybe the house you want needs some major updating while the competition includes mainly updated homes. Either way, you can certainly always ask less than the asking price, and you shouldn't feel shy about asking for less. Obviously a ridiculously low number would be insulting, but there is no harm in asking for less.
If you cannot get the house for a good price or you find out through inspection that there are costly repairs that you are unprepared or unwilling to make, you need to walk away. Many times people are hesitant to step back and look elsewhere because they really like a house, but you should never be so attached to a property that you won't walk off if it's really what is best for you. Besides, this willingness to leave also sometimes empowers you when it comes to negotiations.
For people looking for homes in San Francisco's East Bay and throughout Contra Costa and Alameda counties, it is a good idea to contact the real estate experts at 1stInSite.com before you begin your search. They can help you find Danville homes for sale, Orinda homes for sale, Walnut Creek homes for sale, Alamo real estate, Lafayette homes for sales, Moraga real estate and homes in all other East Bay cities.
About the Author:
Madeleine Glazier enjoys blogging about the real estate industry. If you are looking for Alamo real estate agents, or to find Alamo homes for sale, please check out the 1stInsite website today.
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