While there are no hardcore “rules” to follow, there are absolutely best practices you should carefully consider.
1. Don’t Make an Offer Without Pre-Approval: Getting pre-approved means a lender has vetted your credit and financials and is so far willing to continue the mortgage dance. Pre-approval letters detail your purchasing power and provide sellers and real estate agents a degree of confidence they won’t get anywhere else.
2. Use a Real Estate Agent: For many consumers, buying a home is the single biggest purchase they’ll ever make. It’s something you’ll do maybe a handful of times. It can pay to have an expert in your corner. Real estate agents show homes, negotiate contracts and close deals every month. They can help identify red flags and potential problems, all the while working to best match up properties to your unique needs. The Internet has certainly helped demystify and democratize the homebuying process. But consumers may still want an industry professional on their side. Nearly 90% of homebuyers use a real estate agent or a broker, according to the National Association of Realtors.
3. Put Down Earnest Money: It’s customary, if not legally required, to provide a deposit when you make an offer on a home. Known as earnest money, this deposit is typically 1- 2 % of the purchase price, although the amount can vary by location and other factors. Consult with your real estate agent regarding the right amount.
4. Sell Yourself: Don’t just submit a solid offer and cross your fingers if you’re shopping in a competitive real estate market. Take every opportunity you get to tell your story and sell yourself. Include a handwritten letter with your offer. Ask your real estate agent to convey your admiration for the property and your hopes and dreams to the listing agent.
5. Tour Homes in Person: Mobile video technologies are ushering in a new era for home tours. These tools will continue to supplement the shopping experience. But nothing quite compares to the in-person experience.
CALL REGINA SINGH at 714-883-5205 or EMAIL at Regina@ReginaSingh.com to learn more about how to be competitive as a buyer and not miss out on your dream home purchase.
Yahoo.com – By Chris Birk – February 18, 2014