5 Real Estate tips for home buyers

By Miriam Engeln, blogger since 2004. www.arubaconnections.blogspot.com

Buying a house is an exciting time for most people. A fresh start in a new home brings a lot of hope and promise for the future. There are few decisions in life that are more personal than choosing the place you will call home. And although we aren't usually in a business mindset when we make personal choices in our lives, it's important to remember that your home is a business venture. After all, it is probably your single largest investment. So go ahead and get your mind into business mode for a moment and think about these real estate tips when conducting your real estate transaction.

1. Hire a Qualified "Real Estate agent"

Purchasing a home is a lot of work. Eliminate a lot of stress by hiring a professional real estate agent to arrange showings, inspections, appraisals, contracts, and negotiations. Talk to the people you trust and get recommendation of. Keep searching until you find an agent who is right for you.

2. Get Pre approved with a lender

Without a preapproval letter you are nothing more than a "wannabe" buyer; and no seller will negotiate their best deal with a "wannabe" buyer. Plus, knowing how much you'll be able to borrow from the bank will help you stay realistic when it comes to the purchase price.

3. Know the Difference between your needs versus wants

We all like to dream about our perfect home, but for most of us, our dreams don't usually equal reality. Your budget will dictate how much of your dream you'll be able to achieve, so prioritize a home's features by their level of importance. Is a three-car garage non-negotiable? Or is it more important to have a private lot? Think about your priorities and be aware that you will most likely re-prioritize several times throughout the buying process.

4. Don't look at too many homes

Many home buyers find themselves feeling overwhelmed and confused after a long day of touring homes. Sometimes you're pressed for time, but be reasonable when scheduling home tours; too many in a short period of time and everything will run together in your mind. Refer to your list of needs and wants, as a way to narrow your search.

5. Get an Inspection

Unless you are home inspector by trade, your skills will only get you so far so hire a professional inspector. A good inspector will identify problems, explain the extent of the problems, and also recommend the appropriate repairs. They can run tests to determine the status of many systems. Certain things such as a roof or electrical wiring are considered major issues and may warrant a specialized inspector all their own. These inspections cost more upfront but they can save you thousands in the long run.

making an offer

Make an Offer That Sellers Can't Refuse

With shrinking inventories, many home buyers are finding only competitive offers will win them the house they want.

1.   Be preapproved: About three or four months before home buyers even shop for a home, they should review their credit reports to make sure they are accurate and take short-term steps to improve their credit score.

Buyers then should get a bank’s preapproval. While that won’t guarantee they’ll get the loan, it shows sellers that a lender has verified the buyer’s income and credit score to determine that he/ she can afford payments on a mortgage for a certain amount.

2. Don’t lowball: Buyers may only get one chance to get the home they want in a competitive market. They may not get a second try to sweeten the deal later, so a lowball offer the first time around could cause them to lose out. Buyers should use sales prices of comparable properties in the neighborhood to submit their best offer the first time around.

3. Add earnest money: The extra deposit can show sellers how serious the buyer is. Some buyers may even double the amount that the seller requests to show their commitment in purchasing the home.

4. Keep contingencies to a minimum: Sellers prefer no contingencies, but buyers want to protect their interests too. “Offset a financing contingency with preapproval and a strong earnest money deposit. “If you have enough cash, temper an appraisal contingency by assuring sellers that if the appraisal comes in lower than the purchase price, you'll pay the difference or split it with them (up to a certain amount).”

5. Write a letter: Personal love letters about the home addressed to the sellers are winning over some hearts lately. The letters tell the seller about the buyer (e.g. “We’re relocating from ...”) and what drew the buyer to the home (e.g. “We especially love ...”).