Our Real Estate Blog
When you’re shopping for a home, it’s easy to be overzealous in your attempt to find the perfect property. One of the biggest regrets of home buyers is that of paying too high a price for their dream home. There should be a balance between cost and the right property for you. No matter what kind of house you’re looking to buy or where you plan to buy it, a little planning goes a long way to help you get the most for your dollar when buying a home. Below, you’ll find some tips to help you avoid the dreaded mistake of overpaying for a home.
Look For Amenities That Increase Value
Does the neighborhood you’re looking to buy in have a lot of cool perks? Perhaps the property is close to the heart of downtown or close to one of the most desirable schools in the area. These features add value to the home based on the demand in the neighborhood.
You should also consider if the neighborhood is known as what’s termed “up and coming.” The potential that a neighborhood is also a factor in the price of a home. Is there a lot of construction going on in the area? Is the home you’re buying in a great area but considered a “fixer upper”? High potential properties in desirable areas can actually give you a bargain. A nice property in an area that is still being established can also be a bargain but beware. You may end up paying a higher price as sellers and developers understand that people are eager to move into the neighborhood. Also, if a neighborhood seems to be built up too much, it’s not a good sign. An overdeveloped area can lead to decreased property values over time.
Inside the home, look for things that have been updated to increase the value of the property. An updated kitchen and bathroom add the most cost to a home as these are the most expensive rooms to renovate. Other perks in a home that greatly increase the value include new flooring, new roof, being situated on a cul-de-sac or dead end street, and easy access to highways and main routes.
Know That Some Features Decrease Value
Things like power lines, poor economic growth in the community, high-traffic areas, foreclosures, and unkept homes can all drag down the value of a property. If you happen to be looking in one of these areas, understand that you shouldn’t be paying top dollar for a home there. Look for bargains. Whether you plan to stay or simply flip a property, you need to know at what point the price will be right without overpaying for the home.
Believe it or not, your credit score can make a world of difference as you get ready to search for your ideal house. If you have an excellent credit score, you likely will have no trouble obtaining home financing. On the other hand, if you have a bad credit score, you may struggle to get the financing you need to make your homeownership dream come true.
Ultimately, there are many reasons why you should try to boost your credit score before you purchase a home, and these include:
1. You can simplify the homebuying process.
Purchasing a home can be challenging, particularly for property buyers who fail to get pre-approved for financing. Luckily, if you request copies of your credit reports, you can find out your credit score and identify ways to improve it. Perhaps most important, you can explore ways to bolster your credit score before you submit a mortgage application and increase the likelihood that you can receive pre-approval for a mortgage.
It usually is a good idea to review your credit reports before you enter the housing market. You are entitled to a free copy of your credit report annually from each of the three reporting bureaus (Equifax, Experian and TransUnion). If you request a copy of your credit report from the three reporting bureaus, you can learn your credit score and plan accordingly.
2. You may qualify for a low interest rate on a mortgage.
An excellent credit score may help you get a low interest rate on a mortgage. Thus, if you have an excellent credit score, you may wind up reducing your monthly mortgage payments.
Of course, a low interest rate on a mortgage may allow you to invest in your home as well. If you use the money that you save on your mortgage to complete home improvements, you could upgrade your residence and increase its value over time.
3. You can select the right mortgage option based on your individual needs.
With an outstanding credit score, there likely will be no shortage of lenders that are willing to work with you. As such, you can review a broad range of mortgage options and choose one that matches your expectations.
If you need to improve your credit score, there's no need to worry. Typically, paying off outstanding debt will help you boost your credit score prior to buying a house.
Furthermore, if you receive a credit report and identify errors on it, contact the bureau that provided the report. This will enable you to make any corrections right away.
And if you need help as you get ready to pursue your dream house, don't hesitate to reach out to a real estate agent too. A real estate agent can put you in touch with the top lenders in your area and make it easy to obtain home financing. Plus, this housing market professional will enable you to evaluate residences in your preferred cities and towns and find one that you can enjoy for an extended period of time.
Purchasing a house may prove to be a long, complex process, particularly for a first-time buyer. Fortunately, there are several things that you can do to streamline the process of going from homebuyer to homeowner.
Now, let's take a look at three tips to help you enjoy a quick, easy homebuying journey.
1. Narrow Your Search for Your Dream Home
It often helps to enter the real estate market with a checklist of home must-haves and wants. With this checklist, you will be better equipped than ever before to perform a deep evaluation of any house, at any time.
Think about what you want to find in your dream home and include these criteria in your checklist. For instance, if you want to own a house near your office, you can search for houses that are just a few miles from your workplace. Or, if you want to purchase a house with a big backyard, you should look at houses that offer the space that you need.
2. Submit a Competitive Offer
If you find a house that you want to buy, there is no need to wait to submit an offer. However, it is important to differentiate between a "lowball" offer and a competitive one beforehand.
A lowball offer generally fails to account for the state of a house, as well as the current real estate market's conditions. It is likely to fall short of a home seller's expectations, and as a result, lead to an immediate "No."
Conversely, a competitive offer is based on housing market data, along with the condition and age of a house. And if you submit a competitive offer on a residence, you may receive an instant "Yes" from a home seller.
3. Conduct an In-Depth Home Inspection
After you and a home seller agree to terms, you will want to conduct a comprehensive home inspection. This will enable you to fully examine a house's interior and exterior and identify any potential home problems before you finalize your purchase.
When it comes to buying a home, there is no need to forego a home inspection. In fact, if you bypass a home inspection, you risk encountering costly, time-intensive home problems in the near future.
To hire an expert home inspector, perform a search of the available inspectors in your city or town. Then, meet with several home inspectors, ask for client referrals and allocate the necessary time and resources to perform an in-depth assessment. Because if you hire the right home inspector, you can get the support that you need to make an informed home purchase.
Lastly, if you need help finding a home inspector or completing other homebuying tasks, it usually is a good idea to employ a real estate agent. This housing market professional will learn about your homebuying goals and tailor your home search accordingly. As a result, working with a real estate agent will increase the likelihood that you can enjoy a quick, easy homebuying journey.
A home inspection enables a buyer to examine a residence and identify any underlying structural issues. Plus, the assessment allows a buyer to receive a report that details a home inspector's findings to help him or her determine how to proceed in the homebuying journey.
Ultimately, it helps to prepare as much as possible before you conduct a home inspection. If you allocate time and resources to get ready for a home inspection, you'll be better equipped than ever before to achieve the best-possible inspection results.
Let's take a look at three tips to help you prepare for a home inspection.
1. Hire an Expert Home Inspector
There is no shortage of home inspectors for hire in cities and towns nationwide. However, differentiating an average home inspector from an expert one can be difficult.
When it comes to getting ready for a home inspection, it pays to hire an expert to assess a residence both inside and out. Because if you have an expert home inspector at your side, you can learn about myriad home problems before you finalize a house purchase.
To find an expert home inspector, it helps to reach out to home inspectors in your area. Learn about each home inspector's expertise and ask for client referrals. After you perform an extensive evaluation of home inspectors, you can hire an expert home inspector to assess any residence, at any time.
2. Develop a Game Plan
If you want to achieve the optimal results during a home inspection, it helps to enter the inspection with a plan in hand. That way, you can evaluate all aspects of a residence and improve your chances of identifying both minor and major home issues.
Ensure your home inspection plan includes assessments of a house's interior and exterior, as well as a residence's attic, basement and roof. Also, you should test a home's heating and cooling system during an inspection.
3. Consult with a Real Estate Agent
A home inspection may prove to be difficult if you fail to plan accordingly. Luckily, if you hire a real estate agent, you can get the support you need to maximize the value of a home inspection.
Typically, a real estate agent will guide you along the homebuying journey. Once a seller accepts your offer on a home, a real estate agent can put you in touch with the best home inspectors in your area. Then, you, your real estate agent and your home inspector can work together to perform a successful home evaluation.
A real estate agent will provide plenty of assistance after a home inspection too. And if you are uncertain about how to proceed with a house after an inspection, a real estate agent can offer recommendations to help you make an informed decision.
Want to take the guesswork out of a home inspection? Use the aforementioned tips, and you can prepare for an upcoming home inspection.
Although you may be tempted to spontaneously make an offer on a house that triggers happy memories of your childhood, it's usually best to approach house buying in a methodical, dispassionate way.
Your emotions will come into play as you visit different listings, but they should be tempered by a realistic budget, a list of personal requirements, and a sprinkling of "wish list" items -- ones that will help make your new home extra special!
A lot will depend on whether you're a first-time home buyer or a seasoned home owner. In all likelihood, the more houses you've owned, the higher your expectations will be. That's certainly not a hard-and-fast rule, but it does lend itself to reason. As is the case with most things in life, experience tends to clarify our needs, our tolerances, our quality standards, and our lifestyle preferences.
Buying a home is a huge decision for two reasons: It not only impacts our financial situation (both immediate and long term), but it effects our quality of life for the foreseeable future. So, similar to the institution of marriage, buying a house is a commitment that should not be taken lightly!
Fortunately, there are several effective ways to help ensure that the home you buy will live up to your expectations. One of the most steadfast "anchors" you can have in your search for the ideal home is a seasoned real estate agent. They have the training, knowledge, and communication skills to help you find the house, the right property, and the optimal location that will best suit your needs.
Your agent will work closely with you to create a list of house hunting requirements and preferences. Although the location, school district, and number of bedrooms will probably have a major bearing on your decision, there are literally dozens of other features and characteristics that will influence your final choice. Among those will be square footage, number of bathrooms, and the property's tax rate.
Standard checklists that include a wide range of home buyer requirements are available online and through your real estate agent. These checklists will help you rank each house you visit and objectively compare the homes you like the best. While flexibility is a necessary part of a successful house-hunting campaign, there will invariably be items you won't want to compromise on.
By deciding in advance what your new home should include, you'll create a clear vision of the type of living environment you and your family will find the most satisfying. Whether you're looking for a home with an open floor plan, a screened-in porch, one or more fireplaces, a finished basement, a two-car garage, or ample space between neighbors, getting your requirements down on paper is the first step to turning your house-buying goals into reality!