There are right ways and wrong ways to buy a home. The latter of which will cost you a lot of unnecessary money, stress, and frustration. Use best practices, however \u2014 as offered by real estate experts below \u2014 and you\u2019ll walk away a winner with a smile on your face and cash still in your bank account.<\/p>\n\n\n\n
Selecting the right real estate agent can make all the difference \nwhen it comes to finding your dream home and negotiating the best price.\n Carlos Miramontez, vice president of mortgage lending at a California \ncredit union, offers a few pointers on narrowing down the agent pool.<\/p>\n\n\n\n
\u201cDoing your research upfront can help you make a wise decision and \nchoose a well-qualified real estate agent who\u2019s right for your needs,\u201d \nhe writes on the company blog. \u201cRemember that you\u2019re creating a business\n relationship. It\u2019s important that you work well together, as it could \nbe several months before the entire buying or selling process is \ncomplete. Enjoy a cup a coffee with a few agents before you make the \ndecision on which partner is right for you.\u201d<\/p>\n\n\n\n
There also are specific questions you should be asking your agent, such as:<\/p>\n\n\n\n
Social media is a great resource for connecting with real estate \nagents in an unfamiliar area, says Brady Hanna, president of Mill Creek \nHome Buyers in Kansas City, who has been buying, renting, and flipping \nhouses for over a decade.<\/p>\n\n\n\n
\u201cSearch on Facebook for real estate groups in your local area,\u201d he \nsays. \u201cYou will be surprised to find that there will probably be 10 or \nmore. Join all of them, including investor and wholesaler groups. Then \npost across all of these groups that you are looking to buy a house in \nABC area, what your criteria is, and if they have any off-market \nproperties to send your way, and include your email address. You would \nbe amazed at how many people will send you off-market properties using \nthis technique. I have bought six properties in the last few months just\n from local Facebook groups.\u201d<\/p>\n\n\n\n
How do you stand out in a pool of potential buyers? Send a personal \nnote to the seller with a creative story about yourself, why you\u2019re the \nbest buyer for the house, and your plan to make it a home.<\/p>\n\n\n\n
\u201cIf you talk about your family in the letter, you will pull at the \nheartstrings of the seller and have a much better chance of being \nselected if you have a similar offer than another buyer,\u201d Hanna says. \u201cI\n have experienced this personally when selling houses and every time I \npicked the buyer that wrote the personal note when I had multiple \nsimilar offers.\u201d<\/p>\n\n\n\n
Life in the city is attractive and convenient for a lot of people, \nespecially if you\u2019re the type that likes to have necessities within \nwalking distance. But even though life\u2019s essentials are easily \naccessible, the financial picture over time may rob you of a certain \nquality of life.<\/p>\n\n\n\n
\u201cBe sure to check out properties in the \u2018burbs and take the cost and \ntime of your commute into consideration,\u201d suggests Shane Lee, data \nanalyst for RealtyHop. \u201cWhile the city life is always amazing, you might\n find a way better deal in the burbs. You can even find a fixer upper \nand make it your dream house with the money you save on the purchase.\u201d<\/p>\n\n\n\n
Most first-time home-buyers concentrate on the down payment \u2014 the \nlargest of all the out-of-pocket expenses \u2014 but there are plenty of \nother fees required for a property purchase that you should be aware of \nbefore starting the process.<\/p>\n\n\n\n
\u201cBudget for down payment, closing costs, and other costs as early as \npossible,\u201d Lee advises. \u201cIn addition to the 20 percent down payment \n(some lenders require less), origination fees are usually between 2 and 5\n percent of the total loan amount, and it is crucial that you start \nsaving early on, so you have enough cash to cover all mortgage-related \npayments, legal fees, as well as broker\u2019s commission by the time you are\n ready to close the deal.\u201d<\/p>\n\n\n\n
Don\u2019t forget about the often-overlooked hidden costs that\u2019ll pop up \nbefore you know it, like property taxes, insurance premiums, and any \nHomeowners Association (HOA) dues. Taxes and HOA dues vary, so be sure \nto ask for details. Obtain an insurance premium estimate from your \ninsurance agent.<\/p>\n\n\n\n
It\u2019s important to figure all this out before committing to a property\n to ensure you can afford the entire scope of fees associated with it.<\/p>\n\n\n\n
Homeowners Associations can be great for many communities because \nthey provide a set of standards to ensure that all residents are living \nin a place that values beautification and resale value. On the other \nhand, some folks find the HOA to be too involved, and the decisions of \nthe board may not always be best for everyone.<\/p>\n\n\n\n
Robert Nordlund, founder and CEO of Association Reserves, explains.<\/p>\n\n\n\n
\u201c\u2018Location\u2019 is certainly one of the most influential factors in the \nvalue of a real estate transaction, but when it comes to buying a home \nin one of the 350,000 association-governed communities (AGCs) in the \nUnited States, home-buyers face two additional circumstances,\u201d he says. \n\u201cFirst, getting a good value on the front end will be influenced by \nlargely unpublicized financial factors unique to that AGC. Second, the \nlong-term fate of their investment will be permanently hitched to the \ndecisions or whims of a group of volunteer board members. The vetting \nprocess is not complicated, but it does take time and should be \ncompleted before any offer is on the table.\u201d<\/p>\n\n\n\n
To help you find the right HOA for you, consider these tips:<\/p>\n\n\n\n
Real estate expert, Julie Gurner, makes a case for spending the least\n amount possible on a home that meets your needs and makes you happy \u2014 \neven when you have plenty more to spend on it.<\/p>\n\n\n\n
\u201cWhile your friends might struggle to pay for something at the top of\n their budget, shoot for a home that is 75 percent or less of what \nyou\u2019re approved for to be able to save more effectively for retirement, \nemergency repairs, travel, and generally enjoy your life far more \nwithout the fiscal burden,\u201d she says.<\/p>\n\n\n\n
How can you do that? Look for the most outdated home in the most desirable neighborhood.<\/p>\n\n\n\n
\u201cLook for a home where the style is outdated \u2014 it might need a new \nkitchen, there\u2019s likely old wallpaper or carpets \u2014 but it\u2019s well tended \nto and all the bones are solid,\u201d Gurner adds. \u201cWith time and a bit of \neffort, the ugliest home on the block can almost always become your \ndream home. With so many people expecting move-in-ready homes, the \noutdated homes are often overlooked gems that can save you a fortune and\n put you in a position to build sweat equity from day one.\u201d<\/p>\n\n\n\n
For home-buyers in New York City, San Francisco, Los Angeles, and \nmany other coastal markets, purchasing affordable single-family rental \n(SFR) homes out-of-state is a great way to get started buying real \nestate and building long-term wealth.<\/p>\n\n\n\n
\u201cBuyers in these coastal areas can find higher yields and lower \nmedian home prices than they can in their own backyards,\u201d says Zach \nEvanish, who leads sales efforts at investment-property resource \nRoofstock. \u201cSome prime examples include Memphis, Cleveland, \nIndianapolis, Atlanta, Dallas, Phoenix, Pittsburgh, and other metros \nacross the Southeast, Midwest, and Southwest. Buying SFRs remotely can \nalso be a stepping stone to amassing an investment real estate empire \nwith ample positive monthly cash flow, and to eventually buying an \nowner-occupied home in one\u2019s own hometown, thanks to this stable stream \nof monthly rental income.\u201d<\/p>\n\n\n\n
One of my own personal tactics for saving money on the homes I\u2019ve \npurchased is taking advantage of an inspection that reveals interior or \nexterior issues. If the seller is in a depressed market or needs to sell\n quickly because of other circumstances, you have a great chance of \nmaking post-inspection deals.<\/p>\n\n\n\n
\u201cHome sellers often describe their property\u2019s condition as much \nbetter than it is. A good inspection often reveals unanticipated \ndefects,\u201d explains Lucas Machado, president of House Heroes, a real \nestate investment company. \u201cDon\u2019t be afraid to ask for a reduction. \nBuyers sometimes hesitate to request a lower price due to fear of losing\n the house. In reality, sellers give plenty of reductions upon request \u2014\n even tens of thousands below the initial offer. There is no downside to\n asking \u2014 and you can still proceed if they say no.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"
There are right ways and wrong ways to buy a home. The latter of which will cost you a lot of unnecessary money, stress, and frustration. Use best practices, however \u2014 as offered by real estate experts below \u2014 and you\u2019ll walk away a winner with a smile on your face and cash still in […]<\/p>\n","protected":false},"author":3,"featured_media":1063,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"footnotes":""},"categories":[8],"tags":[54,25,23,55],"class_list":["post-1062","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-real-estate","tag-buy-a-home","tag-real-estate","tag-thailand-housing-market","tag-tips"],"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t