Author: Ryan Anderson

While it may be nice to have a home with five bedrooms, an eat-in kitchen, and a four-car garage, how many of us really need this much space? The best approach is to look at a few particular aspects of your life and lifestyle to make the right choice.

What Is The Size Of Your Family And Will It Grow In The Near Future?

If you are a newly married couple who plan on having children, purchasing a family home with ample room to grow may be the right choice for you. Childless couples, retired couples, or singles may want to rethink the large home and opt for something a little more size appropriate.

Do You Need Office Space Or Like To Entertain?

If you use your home primarily to meet your daily needs, such as a place to sleep, eat, and relax, you may want to consider a home with a large den or office space and a formal dining room.

Do You Plan To Stay In Your Home Long-Term?

If you are just entering the housing market and plan to live in several houses or in several locations throughout your life, you really don’t need your dream home the first time around. Buying a property that suits your lifestyle for the period of time you will live in it is your best strategy.

These are just a few considerations you should take into account when finding the right sized home for you and your family. Having a clear picture of the type of house you need will make the task a little easier, and keep your finances in check!

So you have found the home of your dreams, it has all the features you want, and it is in the right neighborhood. Even the price is right, but suddenly you find yourself in a bidding war with one or more people who also think this is the perfect home. This can be a stressful and sometimes even heartbreaking experience, but what knowledge should you arm yourself with before entering a bidding war with other potential buyers? Here are a few important tips to remember in order to get the house of your dreams without breaking the budget.

Know Your Budget

Having a good idea of what you can afford and knowing your target price can really prevent you from making a bid that you may ultimately not be able to honor. The best way to do this is to get pre-approved for a mortgage before you begin house hunting. That way you will be certain of what you can afford, and if you do find that perfect house you will be able to move quickly to make the purchase.

Know Its Value

While the home for which you are involved in a bidding war may be the house of your dreams, paying considerably more for it than it is worth is never a wise choice. To avoid getting yourself into this situation, do your homework before making an offer. Look at the value of similar homes in the area, and contact a real estate agent or expert to determine the fair value.

Know What You Are Paying For

Getting the results of a home inspection, determining what features actually come with the house, and knowing how much you will have to spend to get it in livable condition will give you a clearer picture of what you are paying for, what comes with the house, and what your budget can hold.

Bid Smart

The fears in any bidding war are that your bid will not be the highest, or that the bidding will keep raising the price higher and higher. To prevent this from happening your best approach in any bidding war is to bid right the first time. If you are prepared to bid, making your best offer first time around will prevent your bid from being rejected due to another higher offer. Bidding odd amounts can sometimes make the difference between your bid or another being the highest.

In general, being caught in a bidding war for a home you really want is always a stressful situation, but armed with these few tips you can end up with the house you want at the price you are prepared to pay.

Often ads for homes on the market include the phrase “motivated seller,” and while this sounds as if it may be to your benefit as a home buyer, what does it actually mean? If a seller is truly motivated you can benefit from a number of potential perks they may be willing to throw in to get their home sold, or they may even be willing to accept a lower offer than the asking price. Here are a few tips on how to find motivated sellers, and how to get the best deal possible.

Is The Seller Really Motivated?

Believe it or not, all “motivated sellers” are not really motivated. The phrase is often used by sellers and real estate agents to get a response from potential buyers. From the perspective of agents, if a seller is fairly insistent that they want a particular price for their home, which the agent feels is above the market value, they may use this phrase to encourage bids below the asking price. Sellers, on the other hand, may request this phrase be used whether they are motivated or not, in order to encourage a bidding war. Whether the seller is actually motivated or not may not always be apparent, but the best way to gauge the situation is by contacting the agent and making a low offer if you are interested.

So The Seller Is Really Motivated! Now What?

If you have put in a below asking price offer and it has been accepted, or a counter offer has been given, then you may really be dealing with a motivated seller.

So what should you do to make the most of this situation while protecting your own interests? The first thing you should always do is be sure you are clear about why the homeowner is so motivated to sell. Is there something wrong with the house or the property? Getting a qualified home inspector to carefully check the property before signing anything is very important to protecting your investment. If all goes well with the home inspection, you may have the opportunity to negotiate other bonuses as well, including the appliances, financing options, or a renovation budget.

Whatever the situation, it is always a good idea to have an agent represent you through the home buying process. They are your insider in getting the most out of the situation, and can help you wade through all the jargon of the home purchasing experience.

The appeal of income properties and the potential for what may seem like easy money and early retirement have likely crossed the mind of anyone who has heard of this business venture. There is a lot more to consider before entering the income property game, however, than simply purchasing a property and watching the dollars roll in. Here are a few things to consider before launching into your new career.

Can You Recognize An Income Property When You See It?

There are a lot of features that make a good income property. Whether you are considering flipping it for a profit or renting it out to potential tenants, knowing what to look for is more than half the job. Can you realistically estimate what the cost of renovations to the property will be? Do you know what the value of the home will be after the renovations, based on its size, location, etc.? Do you know what the market rent would be for the property? If you can’t answer any of these questions you either have a lot of work to do, or you may want to reconsider.

Not Scared Off?

So you think you can reasonably identify an income property and are still interested in making your first purchase. Here are a few tips for making that a success!

Know Your Intent-Whether it’s flipping or renting the property, you should have a clear picture before you make the purchase. Have an estimate of what the renovations will cost as well as the profit margin of the investment, both in the short and long term.

Consider Splitting The Costs-Many people who enter the income property market reduce the risk by having partners. Whether it’s a friend, relative, or business partner, this may be the right decision to minimize your risk in your first venture.

Make It Your Business-Whether you plan on doing this as an additional source of income or you are going into it full time, realizing that this is now a business will prevent you from losing a fortune. You will spend a lot of time getting to know both the real estate and the home renovation industries, and the more you know, the more successful you will be.

Deciding to get into the income property business can be a time consuming, but ultimately very rewarding, venture. Like any business, the effort you put in and the knowledge you have will determine the success you achieve.

When the housing market is up and sales seem to favor sellers rather than buyers, negotiation contract contingencies may seem like a lost cause. But there are always cases where you as the buyer can effectively negotiate purchase protection into the contract of your home, and you may even be able to convince your seller to throw in a few perks. Here are some tips to negotiating contract contingencies from the seller.

Common Contract Contingencies

Knowing what contingencies are often included in home purchase contracts is the first step in getting what you want from the seller. There are a number of contingencies that are commonly included in contracts, and while this list is not exhaustive, it can give you a good idea of what you may want to consider.

Appraisal-This is usually required by your lender, and while traditionally it is the responsibility of the buyer, you can get it covered by the seller.

Home Inspection-This important step can find any major problems with the house or property that could cause a decrease in value, or make it an unwise investment.

Loan Contingency-This is a term in the purchase contract that allows a buyer to back out of the contract if, after making a good faith effort to obtain a loan, the buyer is unable to obtain the loan. The buyer must remove the loan contingency (agree to proceed with the transaction) within the stated amount of time or withdraw from the contract. If a buyer withdraws from a contract because of failure to obtain a loan, generally the buyer is entitled to a refund of his or her earnest money deposit, less any costs actually incurred.

Early Occupancy Agreement-This agreement can speed up the usual 60-day closing period by allowing you to move in faster.

Existing Home Selling Clause-This clause makes the purchase of your new home contingent on your selling your existing home. This prevents you from being in a situation where you may be paying two mortgages at once.

How To Negotiate Contract Contingencies

In most cases if the seller is happy with your offer, and is looking to sell their home hassle free, they are likely to offer at least a few contingencies to a buyer. The best approach is to inform your agent of any contingencies that are an absolute necessity for you, such as an existing home selling clause, so they can clearly express this to the seller and the agent representing them.

When we think of selling a home, the services a REALTOR® can provide usually seem worth the cost of their commission, but what about as a buyer? What can a REALTOR® do for you as a home buyer, and is the commission worth the services they can provide? Here are five great reasons you should hire a REALTOR® when you are in the market for a new home!

REALTORS® Can Help You Determine Your Budget-With a few simple pieces of information, a REALTOR® can help you pre-determine what kind of budget you may be looking at for your new home, and can match you with potential lenders that are right for you.

REALTORS® Have Access To Resources You Don’t-While a lot of real estate listings are available online, there are still resources and listings that are only available through a REALTOR®. If you are looking for something very specific, having their insider knowledge may be crucial to finding that perfect home.

REALTORS® Can Read Between The Lines Of Listings-There are a lot of catchy phrases that often appear in home listings, and your agent can tell you what they really mean.

REALTORS® Increase Your Negotiating Power-A REALTOR® cannot only increase your ability to negotiate things like price, they can also give you advice on things like contingency contracts and required paperwork.

A REALTOR® Can Help You Navigate Through The Closing
Process-The closing process can be a complicated process, and a REALTOR® can make sure all the details are addressed and that you are making a good financial investment.

Purchasing a home is a huge financial investment, and having a professional REALTOR® looking after your interests through the process is important.

When purchasing a home, especially for the first time, you are going to encounter a lot of terms and jargon you may never have heard before. “Property survey” is one such term you may encounter in the process, and it is often not considered one of the more important parts of the home buying process, but it is an essential part of any home purchase closing process and should not be overlooked.

What Is A Property Survey?

A property survey is a document, usually in the form of a map or sketch, that outlines all the prominent features of a property, including the house and the physical boundaries of that property. It can also include other items, such as natural features on the property, including ponds or lakes, and man-made features such as pools. These property surveys must be completed by a professional qualified to carry out a property survey, and usually have to be done within six months of any change of deed.

Why Do You Need A Property Survey?

In some states a property survey is required for a number of reasons. From the perspective of a home buyer, your mortgage lender will usually want to see a recent property survey of the home and land you are purchasing for their records. Also, you will need one for title issuing, and for your municipal office to calculate your property tax. It is also important to note that if you plan on doing any renovations to your home after you purchase it, you will need it for your contractors. This gives them a clear picture of the features of the property as it stands, and the boundaries of the property itself.

What Does It Cost, And Who Is Responsible?

In general, there are two types of property surveys-house location surveys and cadastral surveys-and in most cases it is the buyer who is responsible for the cost of the property survey. If you are just planning to get the required documents for your mortgage lender, the more inexpensive house location survey is the way to go. If there are any doubts about the property, however, such as whether a particular feature lies entirely on the property or not, it is a good idea to go for the more complete survey. In these cases you may be able to convince the seller that you require it in order to make a choice about whether you will purchase the property or not.

It is always advisable to have a REALTOR® who will help you navigate through this process, and they can give you the best advice on making a choice that is right for you.

While all this work may seem like a lot of effort to put forth for what may turn out to be just red tape, if there is a serious problem with the property you are hoping to buy and it goes undetected, what should be your greatest investment may turn out to be your greatest liability.

Whether it’s the character and charm of an older home with its original features, hardwood floors, and wood burning fireplace, or the quaint historic feel of the neighborhood in which it is found, there is a certain appeal to older property. But purchasing an older home may involve additional work and costs that a newer home may not. With a little research and preparation, however, you may find that purchasing an older property may be the right decision for you. Here are a few things to consider before making an offer on an older home.

Age Of The Home

Depending on where you live, an older home can mean 30 years to 300 years. Naturally, this is the first point to consider when deciding whether an older home is right for you. The age of the home, the foundation, and the roof can make a big difference in the type of maintenance it will require, how frequently things may need to be replaced, and the difficulty and expense of replacing them. You will also want to know what kinds of materials were used in the construction of the home.

Age Of The Features

Older homes can sometimes have very old features and appliances lurking within them. Be sure you consider whether or not you will have to replace the kitchen appliances, and be sure to ask when features such as the furnace were last replaced. The age of the home you are looking to purchase may also mean that your decoration budget will have to include costs that you might not have originally anticipated.

Importance Of Home Inspection

The importance of getting a home inspection cannot be understated when purchasing any home, but when in the market for an older home this is a step that should also be done with the utmost care and by a true professional. A home inspection can find problems that are more common in older homes, such as electrical and plumbing issues.

Knowing what you are getting yourself in for when purchasing an older property can make all the difference in finding a home that is right for you. Older homes can certainly be a rewarding purchase, and if you recognize the maintenance costs and any potential renovation costs you will be prepared to make your new house a home.

When you start shopping for a home, you probably have a very specific image of what you would like that home to look like. You probably also see the perfect neighborhood surrounding that perfect home. Every buyer sets out with an image of the house they want to own, but in reality compromises are often necessary in order to stay within your budget.

Compromising On The House

There may be certain things that are non-negotiable when it comes to your new home, such as the number of bedrooms or a two-car garage. But as you take a look at the homes that are within your budget, you may discover that it is not likely you will get everything on your wish list. But the great thing about owning a home is that you have the power to remodel it at any time. Once you are in your new home, you can renovate or even add on if necessary to create the home you really want. And if you have managed to stay below your budget, you will even have the extra money each month to make some of those changes.

Compromising On The Neighborhood

So you’ve found the house of your dreams, but the neighborhood isn’t precisely what you were hoping for. Too much traffic, some houses that are becoming run down, or many other issues can mar the area your house is in. In most cases, you will have to accept that you cannot change the neighborhood, and this means that you have to decide if the problems are things you can live with or not.

In some cases, buying in a run-down neighborhood can be a strategic move. If many people are buying up the houses and improving them, then your home might one day be worth a lot more. However, you must realize that this is a risk and it might not work out that way.

Another thing to bear in mind is that if you choose to buy the nicest house in the neighborhood, you may have trouble selling it down the line. If other houses in the area are available for less, why would anyone buy your expensive house to get into the area?

So Which Matters More?

In the long run, when it comes down to choosing between the right house and the right neighborhood, you should choose the right neighborhood. While you can change your house for the better, you can’t count on your neighborhood changing; in fact, it might get worse. So choose the best neighborhood you can afford even if the house there isn’t perfect.

When it comes to shopping for a home, especially if you are buying for the first time, having an agent on your side is extremely helpful. But if you have never bought a house before, you may have no idea where to begin finding a REALTOR® that you can really trust to help you with this important decision.

If you open the phone book you will see a long list of names, and very little help to figure out which one to call. There are a few ways you can narrow down the field of real estate agents to find someone you can trust.

Ask Your Friends And Family

To find a real estate agent you can trust, start with the people you trust-your family and friends. Of course, the best people to ask are those who have bought a home recently, as the experience they had will still be fresh in their memory. Ask them how happy they were with the service they received, and if they would recommend you hire the same agent.

Ask Others In The Field

Another source of good referrals is through some of the people you may know who work in related fields, such as mortgage brokers and insurance agents. They often know many different agents and work with them regularly. Ask them to provide you with a few names of the people they would trust most with their own home-buying process.

Meet With The Possible Agents

When you have created a short list of possible agents to hire, call a few of them and make an appointment. Sit down and discuss your home buying plans with them. Ask them about what sort of services they provide as well as things like their commission structure. Treat this interview the same way you would in hiring any other professional to handle important business for you. A good REALTOR® will be happy to answer your questions openly and honestly.

Take the time to meet with several agents before you decide who you would like to represent your interests. That way you can compare the different experiences and see who you feel most comfortable with. The agent’s experiences in real estate, their dedication to their clients and, of course, the rapport you develop with them are all important considerations. Remember, you are looking for someone you can really trust.

Your REALTOR® is your home-buying partner and needs to be someone who is there for you and knows all the ins and outs of home buying. Take your time and choose the right person for the job.