When it comes to big financial decisions, buying a house is definitely one of the largest money-related decisions that people make. Because this decision has such far-reaching effects on your overall financial picture, it can be a bit intimidating to buy a home whether you are a first timer or have bought and sold before. Consider the following tips to make this huge purchase less stressful.
Whether it's your first time purchasing a house or your 75th, find a lender and get pre-approved before you shop around for that dream house. Pre-approval is different from pre-qualification, which simply gives you a general idea about how big of a loan you can afford and what types of mortgage options you might consider. Pre-approval is a longer process, but it means that the lender actually has approved a set amount for a mortgage loan in advance of you purchasing a home. This can be a great tool for negotiation as a seller might be more inclined to choose a pre-approved buyer in a multi-offer situation even if the bid is slightly lower. In addition, it makes the process easier when you get into escrow.
Once that task is out of the way, you need to give some serious thought to what you really need out of this purchase. You also need to think in practical terms, knowing that you probably won't get every single item on your wish list. Finding a great home is not impossible, of course, but you shouldn't expect to fall head over heels in love with a property. Generally, over-enthusiasm for a specific home makes you somewhat blind to its flaws and reduces your power of negotiation. No matter how perfect a home may seem, you need to be aware of problems that it might have and never fall in love with a home simply based on ascetics. You can always redecorate but you cannot move it to a better location and you cannot make the yard bigge,r and often you cannot make the home bigger if you need more space.
Making an offer is a tricky business. You don't want to insult the seller with a low-ball offer, but neither do you want to pay more than a home is truly worth. Take a look at the competition and what houses of the same general size and condition have sold for recently in the same neighborhood. Feel free to bid less than the asking price. After all, the seller can simply just say no or counter the price with one of their own.
If the negotiations stall or perhaps you find some serious issues during the inspection, don't be afraid to simply walk away from the deal. Even if this is a home you absolutely adore, if it costs more than it is truly worth or has expensive problems, you need to be willing to find another house. Sometimes a seller will drop their price after you walk away, and sometimes they will offer to fix some problems. Walking away can give you some leverage, but mainly it ensures that you don't end up with a house that costs too much or has tons of problems.
If you are searching for Walnut Creek homes for sale, Danville homes for sale, Orinda real estate, Lafayette real estate, Moraga homes for sale or a home anywhere else in the East Bay area, let the experts at 1stInSite.com help you through the home buying process. They have years of experience in helping buyers in this area purchase and sell homes, and they can help you find your California dream home.
Whether it's your first time purchasing a house or your 75th, find a lender and get pre-approved before you shop around for that dream house. Pre-approval is different from pre-qualification, which simply gives you a general idea about how big of a loan you can afford and what types of mortgage options you might consider. Pre-approval is a longer process, but it means that the lender actually has approved a set amount for a mortgage loan in advance of you purchasing a home. This can be a great tool for negotiation as a seller might be more inclined to choose a pre-approved buyer in a multi-offer situation even if the bid is slightly lower. In addition, it makes the process easier when you get into escrow.
Once that task is out of the way, you need to give some serious thought to what you really need out of this purchase. You also need to think in practical terms, knowing that you probably won't get every single item on your wish list. Finding a great home is not impossible, of course, but you shouldn't expect to fall head over heels in love with a property. Generally, over-enthusiasm for a specific home makes you somewhat blind to its flaws and reduces your power of negotiation. No matter how perfect a home may seem, you need to be aware of problems that it might have and never fall in love with a home simply based on ascetics. You can always redecorate but you cannot move it to a better location and you cannot make the yard bigge,r and often you cannot make the home bigger if you need more space.
Making an offer is a tricky business. You don't want to insult the seller with a low-ball offer, but neither do you want to pay more than a home is truly worth. Take a look at the competition and what houses of the same general size and condition have sold for recently in the same neighborhood. Feel free to bid less than the asking price. After all, the seller can simply just say no or counter the price with one of their own.
If the negotiations stall or perhaps you find some serious issues during the inspection, don't be afraid to simply walk away from the deal. Even if this is a home you absolutely adore, if it costs more than it is truly worth or has expensive problems, you need to be willing to find another house. Sometimes a seller will drop their price after you walk away, and sometimes they will offer to fix some problems. Walking away can give you some leverage, but mainly it ensures that you don't end up with a house that costs too much or has tons of problems.
If you are searching for Walnut Creek homes for sale, Danville homes for sale, Orinda real estate, Lafayette real estate, Moraga homes for sale or a home anywhere else in the East Bay area, let the experts at 1stInSite.com help you through the home buying process. They have years of experience in helping buyers in this area purchase and sell homes, and they can help you find your California dream home.
About the Author:
Madeleine Glazier enjoys blogging about the real estate industry. If you are searching for Alamo real estate agents, or to find Alamo homes for sale, please check out the 1stInsite website today.
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