Wise choice of bread
There are right and wrong ways to buy a house. The latter of which will cost you a lot of unnecessary money, stress and frustration. However, use the best practices suggested by the real estate experts below and you will walk away a winner with a smile on your face and money in your bank account.
1. Research agents before choosing one
Choosing the right real estate agent can be crucial when it comes to finding your dream home and negotiating the best price. Carlos Miramontez, vice president of mortgage lending at the California Credit Union, offers some tips for narrowing your agent pool.
“Doing your research beforehand can help you make a wise decision and select a highly qualified real estate agent that suits your needs,” he writes on the company blog. “Remember that you are creating a business relationship. It is important that you work well together as it can take several months before the entire buying or selling process is completed. Enjoy a cup of coffee with several agents before deciding which partner is right for you.”
There are also specific questions you should ask your agent, such as:
- How often will you send me lists?
- Will you show me at home when I am free (for example, after work or on weekends)?
- How long have you been in real estate?
- What type of property do you specialize in (e.g. condominiums, single family homes or townhouses)?
- Have you worked with other clients in my area and price range?
2. Find local real estate groups on social media.
Social media is a great resource for connecting with real estate agents in an unfamiliar area, says Brady Hannah, president of Mill Creek Home Buyers in Kansas City, who has been buying, renting and reselling homes for more than a decade.
“Search Facebook for real estate groups in your area,” he says. “You will be surprised to find that there are likely to be 10 or more. Join all of them, including groups of investors and wholesalers. Then post in all these groups that you want to buy a house in the ABC area, what are your criteria. , and if they have any off-market items to send to you, and include your email address. You will be amazed at how many people will send you off-market properties using this method. I have bought six properties in the last few months. only from local Facebook groups.” (See also: 5 things your real estate agent would like you to know)
3. Add a personal touch when there are multiple offers
How to stand out in the pool of potential buyers? Send a personal message to the seller with a creative story about yourself, why you’re the best home buyer, and your plan to make it a home.
“If you tell about your family in a letter, you will touch the seller’s innermost feelings and you will be much more likely to be selected if you have the same offer as another buyer,” Hanna says. “I’ve come across this personally when I’ve been selling homes, and every time I’ve chosen a buyer who wrote a personal note when I had several similar offers” (See also: 4 Times a Handwritten Letter Can Save You Big Money)
4. Don’t automatically stop at city life
Living in the city is attractive and convenient for many people, especially if you are the type who likes to have everything you need within walking distance. But even though the essentials are readily available, the financial picture can rob you of a certain quality of life over time.
“Be sure to check suburban real estate and take into account the cost and time of your trip,” suggests Shane Lee, data analyst at RealtyHop. “Despite the fact that city life is always great, in the suburbs you can find a better deal. You can even find a fix-top and make it your dream home with the money you saved on the purchase.”
5. Analyze all expenses before starting the process of buying a house.
Most first-time homebuyers focus on the down payment – the largest out of all out-of-pocket expenses – but there are many other fees required to buy a property that you should be aware of before starting the process.
“Calculate the down payment, closing costs and other expenses as early as possible,” advises Lee. “In addition to the 20 percent down payment (some lenders require less), the loan origination fee is typically 2 to 5 percent of the total loan amount, and it is imperative that you start saving early so that you have enough money. to cover all expenses. mortgage payments, legal fees, and broker fees by the time you’re ready to close the deal.”
Don’t forget the often overlooked hidden costs that will surface before you know it, such as property taxes, insurance premiums, and any Home Owners Association (HOA) fees. Taxes and HOA fees vary, so be sure to ask for details. Get your insurance premium calculation from your insurance agent.
It is important to find out all of this before making a property purchase to make sure you can afford the full amount of fees associated with it.
6. Research HOA to make sure you’re compatible
Homeowner associations can be helpful to many communities as they provide a set of standards to ensure that all residents live in a place that values amenities and resale value. On the other hand, some people feel that the HOA is too involved and the board’s decisions may not always be the best for everyone. (See also: What you need to know about homeowners associations)
Robert Nordlund, founder and CEO of Association Reserves, explains.
“Location is by far one of the most important factors influencing the cost of a real estate transaction, but when it comes to buying a home in one of the 350,000 Association-Governed Communities (AGCs) in the United States, homebuyers face two additional circumstances” he says. “First, getting a good start-up return will be influenced to a large extent by unpublished financial factors unique to this AGC. Second, the long-term fate of their investment will constantly depend on the decisions or whims of a group of volunteer board members. … The review process is not difficult, but it takes time and must be completed before any proposal is submitted for consideration.”
To help you find the right HOA for you, consider the following tips:
- Attend a board meeting.
- If the association is professionally managed, meet with the manager.
- Check the association’s annual budget and make sure it is accurate and balanced.
- Ask for a copy of the reserve study and take the time to understand it.
- Carefully check the attractiveness of the curb during the day and in the evening.
- Pay attention to any obvious delayed maintenance.
- Ask about the history of special evaluations.
- Assess the transparency of the board and manager.
- Familiarize yourself with the rules and standards of the association.
7. Buy a house within your means
Real estate expert Julie Gerner suggests spending as little money as possible on a home that meets your needs and makes you happy, even if you have much more to spend on.
“While your friends may struggle to pay for something that is over their budget, choose a home that is 75 percent or less of what you are approved for to be able to save more effectively for retirement, urgent repairs, travel and generally enjoy life without financial burdens much more,” she says.
How can you do it? Look for the oldest house in the most attractive area.
“Look for a house where the style is outdated – might need a new kitchen, probably old wallpaper or carpets – but it is well cared for and all the bones are strong,” Gurner adds. “With time and a little effort, the ugliest house on the block can almost always be your dream home. With so many people waiting for move-in ready homes, outdated homes often overlook the gems that can save you a fortune and boost your ability to create net worth from day one.”
8. Invest remotely in high yield real estate markets
For homebuyers in New York, San Francisco, Los Angeles, and many other coastal markets, buying low-cost single-family rental (SFR) out-of-state homes is a great way to start buying property and building long-term projects. the term wealth.
“Buyers in these coastal areas can find higher yields and lower median home prices than in their own backyards,” says Zach Evanish, head of sales at investment property Roofstock. “Some notable examples include Memphis, Cleveland, Indianapolis, Atlanta, Dallas, Phoenix, Pittsburgh, and other metropolitan areas in the Southeast, Midwest, and Southwest. monthly cash flow and eventually buying your own home in your hometown thanks to that steady stream of monthly rental income.”
9. Ask for discounts after inspection
One of my personal tactics for saving money on the homes I’ve bought is to take advantage of an inspection that identifies internal or external problems. If the seller is depressed in the market or needs to sell quickly due to other circumstances, you stand a good chance of closing the deal after verification.
“Home sellers often describe the condition of their property as much better than it really is. Careful inspection often reveals unexpected defects,” explains Lucas Machado, president of real estate investment firm House Heroes. “Don’t be afraid to ask for a discount. Buyers are sometimes hesitant to ask for a lower price for fear of losing their home. In fact, sellers give many discounts on demand – even tens of thousands below the original offer. there is no shortage of asking – and you can still continue if they say no.
Like this article? Pin it!
