Purchasing a home is one of the most important financial decisions you will make in your lifetime. It is a complicated transaction that requires professional knowledge and guidance that only an experienced real estate sales representative can provide. A skilled Buyers Representative will guide you through the entire home buying process, from showing you homes that match your ideal to drafting the contract, negotiating the deal, and overseeing the contract to completion. They understand the local market conditions better than you do and are experts in their field. They are best positioned to negotiate with the Sellers Representative and act as your advisor, consultant and negotiator until the deal is closed.
Getting Pre-Approved for a Mortgage
Mortgage pre-approval is a critical step before the house hunting process begins. Getting pre-approved for a mortgage not only confirms how much you can spend on your new home but also locks in your rate of interest for a set period of time (usually 30-120 days). Once you have been pre-approved you can start the house hunting process with confidence and focus on properties within your price range. Then, when you find that perfect dream home, you can proceed with an Offer to Purchase knowing that you have already met the financing conditions to purchase the home at a pre-determined rate of interest.
Understanding Market Conditions
Understanding the real estate market that you are buying into is critical. The real estate market is largely driven by a concept known as supply and demand and, depending on current conditions, can create advantages or disadvantages to the buyer. To take best advantage of current conditions, you need to understand them. Buyer’s Market In a buyer’s market, the supply of homes is greater than the demand. From a buyer’s perspective, this creates many advantages. Not only will you have a large inventory of homes to choose from and more time to find your dream home, but there will be less competition. This greatly increases your negotiating leverage. In a buyer’s market, homes will generally take longer to sell and may go through several downward price adjustments, allowing you to purchase your home at a substantially reduced price. Seller’s Market In a seller’s market, the demand for homes is greater than the supply of homes on the market. There are many buyers competing for a small inventory of homes. In this market, your negotiating power is diminished. Not only will you have a small inventory of homes to choose from and a reduced time to make your decision, you may find yourself in a competitive bidding situation where you will have to pay more for the home. You will also have to consider the conditions on your Offer to Purchase carefully as the seller may choose to sell the home to another buyer without conditions.
Should You Have a Home Inspection?
Before purchasing a home, it is very important to know the true condition of the home. If the home is free of needed repairs, you can move forward confidently with your purchase price, knowing that you will not need to do costly repairs in the future. If repairs to the home are needed, you can negotiate with the seller either to complete the repairs prior to taking possession of the property or negotiate a reduced asking price. Once you take possession of the home, it will be up to you to maintain and repair it. That’s why it is so important to have a professional home inspection prior to making the commitment to buy it. What’s Involved In a Home Inspection? A typical home inspection usually takes 2-3 hours and costs under $500. Your home inspector will visually inspect your entire home – both exterior and interior elements. In the exterior, this will include roofing, flashing, chimneys, wall surfaces, foundations and grading. On the interior, the inspection will include heating, air conditioning, ventilation, plumbing, electrical, insulation, flooring, ceilings, doors and windows. Within 24 hours, a professional home inspector will provide a detailed, written report reviewing every major aspect of your home and outlining the detail of the inspection. Based on the results of your home inspection, you can make informed decisions and move forward with confidence.
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