Home Buying Process: Real Estate Guide

real7

 

Buying a home can seem like a large task up front but break it down in to simple steps and it’s really not what it seems. The entire process can be done with little to no stress if you take it step by step and have the right expectations. Here is the 5 step process I use when purchasing and helping others purchase a home.

1.Go to the Bank – Search around for different loans. There are many different types out there and you need to find the one that works for you. You want to find out what options you have and how much you are going to spend on your new home. Starting out by taking this step will help you and your Real Estate Agent find properties you can afford. Many home sellers will want to see a pre-approval from a bank before they start working with you so you need to be prepared with one.

 

2.Get an Agent – As a buyer you don’t pay an agent (that’s fee comes from the seller) to help you so there’s no reason not to have one to help you out. Ask around to find out who people recommend. I suggest staying away from relatives in this process. You’d hate to have a problem occur during the home buying process and lose a relationship because of it. The realtor will help you come up with homes that are suitable to you and they generally are the first to know about new properties being listed.

 

3.Find a Property – Yes, your agent will be looking for a house for you but you can also put in some time trying to find what you want to buy. Spend time online researching prices and home conditions. This way you’ll know what to expect when your realtor comes to you with some homes to look at.

 

  1. Making an Offer – When you’re buying a home you always have the upper hand. Don’t seem needy when making your offer. Always find areas of the home to exploit in order to knock the price down a bit. Especially in today’s market, you want to play a bit of hardball. Many people are in a NEED TO SELL situation so make sure to use that to your advantage. Remember, when you make an offer it’s just an offer. Don’t go falling in love with the house yet. If you do, you’ll be let down often. Another tip when making an offer is to always make it contingent on an inspection. This way if you find something you dislike when you have an inspector come through you can still back out of the deal.

 

5.Get an Inspection – Once you’ve found the perfect home and have an accepted offer you will want to get a professional inspection done. Never skip this step when buying a home. This will help ensure you understand everything about the property you’re buying. You’d hate to find any major or minor problem after the purchase is made. It may cost a bit extra but it’s a great way to get a piece of mind when making a purchase this large. Plus, if the inspector finds something that needs to be fixed you can always rewrite your purchase offer. In the end the inspection can help you save when buying a home.

 

Follow these 5 simple steps on your next purchase and you’ll find the process of buying a home to be a happy one.

Buying a Foreclosed Home

real6

 

In today’s economic times, the foreclosed home market is huge. If you are in the market to buy a home for yourself or to use as a rental unit, now is the time to buy. Buying a foreclosed home is a great investment for the real estate community.

To explain foreclosure, it is when a lending institution uses a legal process to terminate a property owner’s right due to their inability to pay their mortgage. It is a lengthy process but once a foreclosure has been delivered, the families leave immediately. This means all foreclosed homes are vacant and ready to be lived in upon purchase. That does not mean that all foreclosed homes have been cleaned prior to moving in.

 

Because the lending company wants to sell the house quickly, the starting price is normally lower than market value. The key to buying a foreclosed home is to buy it as far below it’s assessed value as possible. This will help secure a larger profit margin when you sell the property. If the property is being bought to ‘flip’, the lower the price paid – the better the chance of selling it and making a bigger profit.

 

Purchasing a foreclosed home is relatively easy. The hardest part is tracking or finding the foreclosures in your area. A good website to use is www.foreclosuredeals.com. Your local county courthouse is another good resource. The legal section in your local newspapers also prints the foreclosures and when the foreclosure auction will be held.

 

Before you buy your first foreclosed home, do some research. It is very important to understand your states foreclosure laws. This information can be found on your state website and possibly on your county’s website. Individuals at your local county courthouse will be able to advise you were to find the information.

 

If you are buying the piece of foreclosed property as an investment, there are a couple risks. If you pay too much for the property you may not be able to sell it in a timely manner and you may not make as much profit. So be careful and do your homework.

 

Besides the price on a foreclosed home, there are other benefits. The first benefit, knowing there are no liens against the property as the lending institution will have taken care of that. The second, knowing there are no delinquent taxes.

 

Once you have found a foreclosed home to purchase, supplied and secured financing, you are ready to place a bid on the home. Bids may be made at a foreclosure auction or by sealed bid. There are times that a local realtor may submit your bid for such a property. To optimize the foreclosure situation start out bidding low to maximize your investment.