BUYING REAL ESTATE TIPS FOR 2014
As the market continues to make a recovery, more and more hopeful homeowners are entering the real estate market. There are still plenty of first time home buyers, people buying larger homes, people downsizing their homes, or vacation homes!
If you are entering the market for 2014, FOLLOW THESE TIPS or you could end of waiting yourself right out of the market!
Check into reality.
Instead of daydreaming your ideal home, make a list of what things are absolutely essential: a specific number of bedrooms, close proximity to work or your child's school, a decent-sized yard. Once you know what you need, but before you begin your actual house hunt, start looking at what sold in the last six months that fits your bill. See what the selling prices are looking like, and figure out if you can afford a similar price tag. If you can't, it might mean waiting a bit, or reassessing your needs, or putting down a larger down payment.
Get pre-approved, not pre-qualified.
Many people get confused between “pre-approved” and “pre-qualified” when it comes to obtaining a loan. Getting pre-qualified means a bank has qualified you for a mortgage based on information you provided, but they have not actually checked up on your credentials. A letter of pre-approval means the bank has thoroughly checked out your financial status, and is ready to give you a loan. This holds more weight in terms of buying quickly, and can act as leverage should it come to beating out other buyers.
Don't low ball.
When it was a buyer's market, low balling was often a good way to start negotiating price. However, now that we're seeing inventory shortages and more and more buyers entering the field, low balling most likely means you will lose the deal to other buyers. Instead, present a fair offer that's in your price range and is comparable with the recently sold homes in the neighborhood.
If you are entering the market for 2014, FOLLOW THESE TIPS or you could end of waiting yourself right out of the market!
Check into reality.
Instead of daydreaming your ideal home, make a list of what things are absolutely essential: a specific number of bedrooms, close proximity to work or your child's school, a decent-sized yard. Once you know what you need, but before you begin your actual house hunt, start looking at what sold in the last six months that fits your bill. See what the selling prices are looking like, and figure out if you can afford a similar price tag. If you can't, it might mean waiting a bit, or reassessing your needs, or putting down a larger down payment.
Get pre-approved, not pre-qualified.
Many people get confused between “pre-approved” and “pre-qualified” when it comes to obtaining a loan. Getting pre-qualified means a bank has qualified you for a mortgage based on information you provided, but they have not actually checked up on your credentials. A letter of pre-approval means the bank has thoroughly checked out your financial status, and is ready to give you a loan. This holds more weight in terms of buying quickly, and can act as leverage should it come to beating out other buyers.
Don't low ball.
When it was a buyer's market, low balling was often a good way to start negotiating price. However, now that we're seeing inventory shortages and more and more buyers entering the field, low balling most likely means you will lose the deal to other buyers. Instead, present a fair offer that's in your price range and is comparable with the recently sold homes in the neighborhood.
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