With due time you can change that ugly rug or outdated counter tops but the floor plan is really the basis that you can create your own style within. Make Sure Your Finances Are In Order:
Some real estate agents will not even show a home without the person having a mortgage pre-approval. You should absolutely meet with if not one, several mortgage brokers to find out what you can afford and how much of a down payment will be required for what you are looking for. Do all the math for yourself, just because a bank offers you can astronomical loan does not mean you should take it. Also if you have credit issues, that process could take several months. So make sure every aspect of your financial life is in tune before embarking on that journey. Consider Every Aspect of Your Purchase: First thing is first; buying a home can be extremely stressful. The key to finding the right home for you is to be very detailed about the cost of living, not just buying the house but every other aspect that comes with it. You must consider things like property taxes, homeowner’s fees, and homeowners insurance. You must factor that into your budget when attempting to purchase a house. Another great piece of advice is to never empty your bank account to afford the down payment on a house, because there is always a chance for unexpected repairs that are a necessity, like the plumbing going bad for example. It is important to have a redundant system when it comes to a big purchase like that. Focus On What Is Essential To You: When looking at a house, it can be easy to see the faults in it. Like maybe an outdated kitchen, or a shag rug. The important thing to look at in a house you want to live in for a while is the floor plan. With due time you can change that ugly rug or outdated counter tops but the floor plan is really the basis that you can create your own style within. Whether you want to re-model it for relatives or you want to raise a family, the floor plan is the most vital thing to pay attention to depending on what you want out of a house. Another aspect of finding what finding is essential to you and your lifestyle whether it be a certain school district for the kids, or premier location for a short commute to the office. You will have to settle on a budget, but prioritizing which are more important to you is a very important step to take before putting an offer on the house of your choice. A Few Last Pointers: Those were the main points I wanted to cover when discussing this with you, but there are other factors that have importance in the home buying process. One thing is to get to know the neighbors wherever you decide you want to live; bad neighbors can make or break a sale for some people. Also be ready to move fairly quickly once you are thinking about an offer on a house because the good ones usually go pretty quickly so when searching always stay on your toes.
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Myth #1: You need 20% down to buy a house. This is a very common misconception among the millennial population, that you need a fifth of the house in your savings before you try and set up a mortgage. Due to the housing crisis of 2008 when the rate went through the roof, it made it extremely hard for anyone to get a mortgage loan unless you were in the top tax brackets much less someone in the lower to mid tier. But now since the market has regrown and Brexit assisting the buyers market you can get a loan with interest rates as low as 3.42% according to the 30 year national trend compared to 6.52% in July 31st of 2008. (FRED) You do need good credit, verifiable income, and assets to back yourself up but you do not need this amount of capital to make those dreams possible. Myth #2: You don’t need a real estate agent because all the information is out there. This is another misconception that people have with the market. Most people would think of a real estate agent is someone who only knows where the available homes are and since the Internet has become so user friendly the demand for an agent isn’t there. That is not the truth by any means. Having a realtor is having someone who is there with you that studies the market and can help negotiate the price to ensure you are not getting taken advantage of. You will want someone who can understand and take control of the deal as a trained professional considering buying a house is a huge decision based on the fact that your house will one day be your biggest asset. (Kitces) Myth #3: You should remodel the kitchen and bathroom before selling. If you do remodeling, it could very easily backfire unless you are an interior designer and even then you still just don’t know what the buyer wants. That is just another unknown variable to add to your stockpile when attempted to sell a house and meet the customer’s demands. The reality is that if people want the remodeling done in the first place, don’t you think they would want to do it themselves with their own style? It is better to adjust your price to the current market and sell it that way than to put your own spin on it. Myth #4: Open Houses Sell Houses Many sellers believe that open houses are the trick to getting rid of them. This is also a myth. According to the National Realtors Association, 2% of all sales in that market area are sold via an open house. (NRA) Yes, obviously it does produce sales but not enough for people to think that is some special trick. Many realtors see an open house as an opportunity to meet with new clients which has some plausible reasoning but before you start every Sunday with an open house think of the sales that come from it. Myth #5: All Real Estate Agents Make Great Money Most people assume that every time a realtor sells a home, they take away a 6% commission. (Hiscock) Yes they can make good money, but that is not that way all the time. Let’s assume, for the sake of argument, that the commission for a home is 6%. Even with that, the commission is normally split between the listing and the selling brokers. The real estate agents then take a “cut” from the commission that goes to the company first and distributes the rest between other agents involved in the transaction. Also items such as fuel, car insurance, and maintenance are just a fraction of the problems they have to deal with. So before you get your realtors license, make sure you are in the right position to actually make good money. “30-Year Fixed Rate Mortgage Average in the United States©.” – FRED. N.p., n.d. Web. 14 July 2016. “9 Common Real Estate Myths That Plague Buyers and Sellers.” US News & World Report. N.p., n.d. Web. 14 July 2016. “The Real Reason Home Ownership Is The Average American’s Greatest Investment.” Kitcescom. N.p., 14 Apr. 2011. Web. 14 July 2016. “Top 10 Real Estate Myths Debunked.” Rochester Real Estate LOCAL Homes For Sale. N.p., 23 Dec. 2014. Web. 14 July 2016. |
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