Home Buying Tip #1

Have a Game Plan

Knowing what you want and how to get it are the keys to being successful at almost anything, including buying a home. Taking time to think through your reasons for buying a home can help you make a better decision when it's time to sign on the dotted line. Most home buyers want the benefits of home ownership, security, appreciation, pride of ownership, etc. Knowing your motivations is step one. Here's how to acheive them...

Home Buying Tip #2

Find and Hire a Buyer's Agent

Buying a home today is much easier than it was even a decade ago. Home purchases require less time and information about available housing is readily available through the Internet. But it's still important to have a professional assist you with locating and purchasing a home. A good buyer's agent can help you locate the right home, put together a purchase agreement , negotiate to help you obtain the property at the best possible price and assist you in navigating the unfamiliar real estate waters until settlement. Since residential real estate transactions in the United States are still structured so that the seller pays the buyer agent's commission, it just makes sense to take advantage of the system and hire an agent who can walk you through the real estate transaction process.

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Buyer Rebates

Home Buying Tip #3

Get Pre-Approved

Before you start out on your search for a new home, make a stop at your mortgage lender. A mortgage lender can prepare a "pre-approval letter" for your purchase which accomplishes 2 important goals in the home buying process: 1) A pre-approval letter lets you know how much home you can afford. There's no sense in wasing time looking at homes you can't afford. 2) When it comes time to make your offer on the home of your dreams, a pre-approval letter will generally be required by the seller or their agent to show proof of your ability to pay. You don't want to let vaulable time slip by waiting on a pre-approval letter once you've found the home you want.

Home Buying Tip #4

What Matters Most

Once you know what price you want to spend on a home, make a list of the most important features you must have. Location, number of bedrooms and baths, garage, basement, sunroom, etc. should all be placed in order of importance. Your buyer's agent can set up an email update from the local Multiple Listing Service (MLS - the "stock exchange" of real estate) that will send you the newest listings as they come on the market based on your criteria. By narrowing your search to the MOST important features, you'll save yourself tons of time and make the decision process much easier.

Home Buying Tip #5

Negotiate to Win

As soon as you've decided on the home you want, get ready to make another list. This time you'll want to decide what items to negotiate. Again, knowing what's most important to you will go a long way towards successful negotiations. Remember, price isn't the only thing you can negotiatie. Some sellers may be hard set on a price but willing to make other concessions, such as paying for all or some of your closing costs, throwing in appliances, making allowances for carpeting or painting, etc. Review your list with your buyer's agent who will prepare an offer to purchase on your behalf. Generally, negotiations take place between the listing agent and your buyer's agent.

Home Buying Tip #6

Get a Home Inspection

Your offer to purchase should include a contingency for a Whole House Inspection and may include contingencies for other inspections, such as, mold, radon, engineering, etc. A home inspection is a critical piece of the home buying process. This is the time to discover any hidden defects in the property that affect the value. Your home inspector will prepare a written report which you can review with your buyer's agent. Any repairs that need to be made can be placed in an addendum to the purchase agreement and presented to the sellers.

Home Buying Tip #7

Stay on Top of the Process

Once the purchase agreement has been executed there's still work to do. Making sure all of the contingency deadlines are met and that the settlement occurs on the specified date are ultimately your responsibility. Make a timeline or enter these dates on your daytimer. You should call the mortgage lender once a week to make sure that they have everything they need and that the mortgage process isn't being held up unecessarily.

Home Buying Tip #8

Plan Ahead

Make sure you have your moving plans in place as far in advance as possible. Depending upon the time of year, moving companies can be booked for weeks or months out. You will want to coordinate with the seller about utility switch over dates to avoid re-connection fees. About a week or so before the closing date, you should contact the closing company to confirm the closing time and find out what you need to bring with you to the closing.

That's it! With a little planning and forethought, home buying can be an enjoyable and profitable experience. For information on flat fee home buying programs designed to save you money on your real estate purchase, click here.

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