Every house has something wrong with it. Even brand new homes. Homes are made by people out of wood and stone. Neither the people making the house, nor the wood and stone it is made out of it are perfect. Mistakes happen and less than perfect materials are used.
Sometimes this results in a problem. That is why you need to get a home inspection done before you buy any house. In fact, you should have it in your contract as a contingency that you will only buy the hose if you approve of the findings of the home inspection.
Notice the wording of the previous paragraph. It says that you will buy the house only if you approve of the findings. It does not say you will buy the house if there are no termites. This is what we in the business call a weasel clause. It lets you get out of the contract for a stupid reason.
If the home inspector has several items of concern for you on his report, you have a big decision to make. Will you be able to live with the house if the problems are repaired? Will these problems cause you a problem when it is time for you to sell the house? Can the problems be cheaply repaired or will the problem keep occurring?
If the problems can be fixed, you can ask the sellers to have the items fixed, or to reduce the price of the house the same amount as it would take to pay to fix those items. If the items are too large, you should be able to back out of the contract.
Any time you have a foundation problem, or anything similar you have to be very careful in proceeding. Foundation problems are very expensive to fix and unless the problem is fixed and the repair company will keep the warranty in place for you as the new owner you might want to look for another house.
If the problems are not major, you can ask the sellers to simply reduce the price of the house by the amount it would take them to have the items repaired. This works great if you are handy with your hands or know a carpenter or someone who can do the work for you cheaply. Normally, sellers overestimate the amount these repairs would cost.
For example, if there was a leak upstairs and the downstairs ceiling is stained, this looks like a serious problem. But if the leak is fixed and the ceiling is replastered and painted, the problem is solved. To a contractor this is a 2 hour job and cheap to fix. But for a seller to call a contractor and get it fixed it is a major hassle and will cost a few hundred dollars. Money that any seller with common sense will quickly deduct from the sales price of the home if you will let this problem go.
The home inspection and the home inspector are two of the best friends a home buyer has. Make sure you use them to your utmost advantage. They can save you a lot of money when buying a house.
http://www.realestateinvestmentarticles.net/Article/home-buying----70-Ways-For-Home-Buyers-To-Save-Money-When-Buying-A-Home--Tip--15-/1577
Wednesday, October 3, 2007
home buying - "70 Ways for Home Buyers to Save Money When Buying a Home: Tip #17"
Tip #17 in our series of 70 ways to save money when buying a house is to never tell your agent the top price you will pay for a house.
In our last tip, I explained to you the importance of having your own real estate agent on your side. And if you are going to but property you should have an agent on your side, especially if it does not cost you anything.
But, your agent is human, and there is no way to tell if he/she has your best interest in mind. The higher the price of the house you buy, and the more you pay, the larger the commission for your agent. So if the agent was selfish, she would try to get you to pay as much as possible. She wants you to buy the most expensive house you looked at because if you buy it, it will be the largest commission for her.
By pushing you just a little bit towards the more expensive house, she will make a few hundred dollars more. Not bad for a few seconds of work.
Or say you are negotiating with the sellers, and your agent knows you can pay more than you are offering. Will she be able to go in to the sellers and really sell them on the offer? Probably not.
That is why I suggest you never tell your agent or any real estate agent how much you can pay for a property.
Your agent will ask you how much you can afford, but do not tell. Give a range. Tell him,
We would be comfortable paying between 225- 250 thousand for a house.
There is no telling if your agent will keep your information confidential. By law, they are supposed to, but it is very hard to prove, and you do not want to take that chance. By giving them a range they have all the information they need to do their job well. They can show you all the houses that meet your needs in the price range you gave him. Then, if the agent shows you a house that is above your price range, you might want to think about getting another agent.
After giving a solid range, there is no reason an agent should show you a house that is above your range, unless there were not enough homes in your range. But if you do some homework, you should easily be able to choose a range that you will be comfortable with and that has plenty of homes to choose from.
By keeping this information to your self you protect yourself from the human tendencies that get us all in trouble. Realtors are human, and you should remember this.
By giving your agent a range of prices of homes you want to see, you are making it easier on the realtor to narrow down homes to show you and you can save yourself a boatload of money at the same time. The best thing is, that you would never know if your realtor did something that made you pay more. Do not let the realtor screw it up for you. Keep this information to yourself.
http://www.realestateinvestmentarticles.net/Article/home-buying----70-Ways-for-Home-Buyers-to-Save-Money-When-Buying-a-Home--Tip--17-/1576
In our last tip, I explained to you the importance of having your own real estate agent on your side. And if you are going to but property you should have an agent on your side, especially if it does not cost you anything.
But, your agent is human, and there is no way to tell if he/she has your best interest in mind. The higher the price of the house you buy, and the more you pay, the larger the commission for your agent. So if the agent was selfish, she would try to get you to pay as much as possible. She wants you to buy the most expensive house you looked at because if you buy it, it will be the largest commission for her.
By pushing you just a little bit towards the more expensive house, she will make a few hundred dollars more. Not bad for a few seconds of work.
Or say you are negotiating with the sellers, and your agent knows you can pay more than you are offering. Will she be able to go in to the sellers and really sell them on the offer? Probably not.
That is why I suggest you never tell your agent or any real estate agent how much you can pay for a property.
Your agent will ask you how much you can afford, but do not tell. Give a range. Tell him,
We would be comfortable paying between 225- 250 thousand for a house.
There is no telling if your agent will keep your information confidential. By law, they are supposed to, but it is very hard to prove, and you do not want to take that chance. By giving them a range they have all the information they need to do their job well. They can show you all the houses that meet your needs in the price range you gave him. Then, if the agent shows you a house that is above your price range, you might want to think about getting another agent.
After giving a solid range, there is no reason an agent should show you a house that is above your range, unless there were not enough homes in your range. But if you do some homework, you should easily be able to choose a range that you will be comfortable with and that has plenty of homes to choose from.
By keeping this information to your self you protect yourself from the human tendencies that get us all in trouble. Realtors are human, and you should remember this.
By giving your agent a range of prices of homes you want to see, you are making it easier on the realtor to narrow down homes to show you and you can save yourself a boatload of money at the same time. The best thing is, that you would never know if your realtor did something that made you pay more. Do not let the realtor screw it up for you. Keep this information to yourself.
http://www.realestateinvestmentarticles.net/Article/home-buying----70-Ways-for-Home-Buyers-to-Save-Money-When-Buying-a-Home--Tip--17-/1576
home buying - "70 Ways For Home Buyers To Save Money When Buying A Home: Tip #4"
Use a mortgage broker
Who do you think has a better chance of getting you a better interest rate:
A bank with one loan program?
Or a mortgage broker that works with a 100 different banks that compete everyday for your business?
It is definitely the mortgage broker who can shop your loan around to hundreds of lenders.
You probably have seen TV ads from lendingtree.com and nexttag.com where they say they will get you quotes from 4 different lenders. That is nothing. A good mortgage broker works with dozens or even hundreds of lenders and can shop your loan around to all of them for you.
In our mortgage brokerage office, we get rates sheets faxed and sent via computer to us everyday from many of the lenders we work with. We then consult each rate sheet on every loan, to see which lender is offering the best program and rate for that borrower. And the rates change everyday. On one day Lender A might have a better rate. The next day, Lender B will have the better rate for the same loan. A good mortgage broker will stay on top of all this for you.
If you go to your local bank, they will have maybe 10 loan programs. If you are lucky and have great credit they will get you a good rate. If you have bad credit they will usually just turn you down. And this is after you sit with their loan officer and give them hundreds of different documents.
When you use a mortgage broker, they can approve or deny you in less then 5 minutes. But then, if you get denied through the computer, they can then send your loan request in to what are called sub-prime lenders. These are mortgage lenders that give loans to people with less then perfect credit. They charge a little more, but are willing to give you a loan.
At my mortgage company, MoneyTree Mortgage in Houston, we work with over 238 different lenders. If I cannot get you a loan, no one can.
And having this many lenders is crucial because every loan is different. Your loan might have to go to a different lender then your neighbors loan if you want to get the best deal. You see, we get the banks to really compete for your loan. And having 238 banks fighting for your loan is a lot better then four.
Many times, I will have people come into my office and say they got a great rate from their bank. When I compare it to what I can give them, they cannot believe that I can save them so much money. Like I said before, when you have dozens of banks sending you their rates everyday, you know which are the cheapest.
Another reason to use a mortgage broker is the way they get compensated. A mortgage broker works mainly on commission. If he upsets you and you walk away he does not make any money. So a mortgage broker will do whatever it takes to get you a loan. Someone working at a bank on the other hand, gets a salary. If you get your loan there, he is happy and probably gets a small bonus. But if you do not it is no skin off his nose.
By using a mortgage broker that is dependant on the commission, you will have someone work harder for you and he will do the best job he can, because in the long run he wants you to refer your friends and family to him.
http://www.realestateinvestmentarticles.net/Article/home-buying----70-Ways-For-Home-Buyers-To-Save-Money-When-Buying-A-Home--Tip--4-/1575
Who do you think has a better chance of getting you a better interest rate:
A bank with one loan program?
Or a mortgage broker that works with a 100 different banks that compete everyday for your business?
It is definitely the mortgage broker who can shop your loan around to hundreds of lenders.
You probably have seen TV ads from lendingtree.com and nexttag.com where they say they will get you quotes from 4 different lenders. That is nothing. A good mortgage broker works with dozens or even hundreds of lenders and can shop your loan around to all of them for you.
In our mortgage brokerage office, we get rates sheets faxed and sent via computer to us everyday from many of the lenders we work with. We then consult each rate sheet on every loan, to see which lender is offering the best program and rate for that borrower. And the rates change everyday. On one day Lender A might have a better rate. The next day, Lender B will have the better rate for the same loan. A good mortgage broker will stay on top of all this for you.
If you go to your local bank, they will have maybe 10 loan programs. If you are lucky and have great credit they will get you a good rate. If you have bad credit they will usually just turn you down. And this is after you sit with their loan officer and give them hundreds of different documents.
When you use a mortgage broker, they can approve or deny you in less then 5 minutes. But then, if you get denied through the computer, they can then send your loan request in to what are called sub-prime lenders. These are mortgage lenders that give loans to people with less then perfect credit. They charge a little more, but are willing to give you a loan.
At my mortgage company, MoneyTree Mortgage in Houston, we work with over 238 different lenders. If I cannot get you a loan, no one can.
And having this many lenders is crucial because every loan is different. Your loan might have to go to a different lender then your neighbors loan if you want to get the best deal. You see, we get the banks to really compete for your loan. And having 238 banks fighting for your loan is a lot better then four.
Many times, I will have people come into my office and say they got a great rate from their bank. When I compare it to what I can give them, they cannot believe that I can save them so much money. Like I said before, when you have dozens of banks sending you their rates everyday, you know which are the cheapest.
Another reason to use a mortgage broker is the way they get compensated. A mortgage broker works mainly on commission. If he upsets you and you walk away he does not make any money. So a mortgage broker will do whatever it takes to get you a loan. Someone working at a bank on the other hand, gets a salary. If you get your loan there, he is happy and probably gets a small bonus. But if you do not it is no skin off his nose.
By using a mortgage broker that is dependant on the commission, you will have someone work harder for you and he will do the best job he can, because in the long run he wants you to refer your friends and family to him.
http://www.realestateinvestmentarticles.net/Article/home-buying----70-Ways-For-Home-Buyers-To-Save-Money-When-Buying-A-Home--Tip--4-/1575
home buying - "70 Ways For Home Buyers To Save Money When Buying A Home: Tip #16"
One common mistake many home buyers make is that they call the listing agent for information on a house they like.
The agent listing the house, (the person who put the sign in the yard) works for the sellers only. She does not work for you and you do not want her to work for you. She will blab everything you tell her to the sellers including how much you would pay for the house. In fact that is her job.
If you call a listing agent and tell her anything, she is required to tell the sellers. If she does not, and they find out, they can sue her and her company for a ton of money. If that happens she will probably lose and lose her job and license as well.
Get your own agent: A Buyers agent that will be faithful to you.
And it is a good idea to have an agent on your side that is from a different company than the listing agent. You want your agent to fight on your behalf, not be buddies with the listing agent.
The listing agent might even tell you that it makes no difference and that you do not need another agent. Do not believe it for a second. If you do not use your own agent, the listing agent gets to keep the entire commission paid by the sellers. If you use your own agent, the listing agent has to share the commission with your agent. And if you use your own real estate agent he might share the commission with you. The listing agent almost never shares the commission with the buyers.
You agent does not get paid until you buy a house. So get your own. It does not cost you anything. As the buyer, the seller will pay the real estate commission whether you have an agent representing you or not, so why not have the added back up and someone looking out for you? Especially since it will not cost you anything extra?
If you have your own agent, they will even coach you on what you should offer for the property. A listing agent will never tell you to offer less than the asking price, which is against her contract with the sellers.
You won agent will show you comps. These are homes in the area that are similar to the house you are looking at and at what prices they sold and are for sale for. Using the lower priced comps you can make a case to the sellers to lower their price. If you use the listing agent, she will never show you the lower priced comps. Only the higher priced ones that make her listing look like a bargain.
In many cases, the agent at the open house is the listing agent, so be careful what information you share at an open house. If it can, it will be used against you.
Tip #16 is our series on How To Save Money When Buying A House is to get your own real estate agent. Do not use the listing agent. This tip alone can save you thousands on the price of the home you pay.
http://www.realestateinvestmentarticles.net/Article/home-buying----70-Ways-For-Home-Buyers-To-Save-Money-When-Buying-A-Home--Tip--16-/1571
The agent listing the house, (the person who put the sign in the yard) works for the sellers only. She does not work for you and you do not want her to work for you. She will blab everything you tell her to the sellers including how much you would pay for the house. In fact that is her job.
If you call a listing agent and tell her anything, she is required to tell the sellers. If she does not, and they find out, they can sue her and her company for a ton of money. If that happens she will probably lose and lose her job and license as well.
Get your own agent: A Buyers agent that will be faithful to you.
And it is a good idea to have an agent on your side that is from a different company than the listing agent. You want your agent to fight on your behalf, not be buddies with the listing agent.
The listing agent might even tell you that it makes no difference and that you do not need another agent. Do not believe it for a second. If you do not use your own agent, the listing agent gets to keep the entire commission paid by the sellers. If you use your own agent, the listing agent has to share the commission with your agent. And if you use your own real estate agent he might share the commission with you. The listing agent almost never shares the commission with the buyers.
You agent does not get paid until you buy a house. So get your own. It does not cost you anything. As the buyer, the seller will pay the real estate commission whether you have an agent representing you or not, so why not have the added back up and someone looking out for you? Especially since it will not cost you anything extra?
If you have your own agent, they will even coach you on what you should offer for the property. A listing agent will never tell you to offer less than the asking price, which is against her contract with the sellers.
You won agent will show you comps. These are homes in the area that are similar to the house you are looking at and at what prices they sold and are for sale for. Using the lower priced comps you can make a case to the sellers to lower their price. If you use the listing agent, she will never show you the lower priced comps. Only the higher priced ones that make her listing look like a bargain.
In many cases, the agent at the open house is the listing agent, so be careful what information you share at an open house. If it can, it will be used against you.
Tip #16 is our series on How To Save Money When Buying A House is to get your own real estate agent. Do not use the listing agent. This tip alone can save you thousands on the price of the home you pay.
http://www.realestateinvestmentarticles.net/Article/home-buying----70-Ways-For-Home-Buyers-To-Save-Money-When-Buying-A-Home--Tip--16-/1571
home buying - "70 Ways for Home Buyers to Save Money When Buying a Home: Tip #19"
This tip involves a little trickery and some of you might find it dishonest. Normally in a negotiation the side with the most information wins, or at least gets the best terms.
In the process of house buying you will find yourself in a similar situation. You want to pay as little as possible for the house, while the seller wants to get as much as he can for the house. The only way to save money on the price, is to get the seller to come down on price. And in order to have that happen, you need to try to determine how low the seller will go.
The house might be listed for $250,000. You agent will be able to tell you what the seller paid for it and when. Let us say the seller bought it two years ago for $180,000. And according to the seller paid $30,000 in upgrades and remodeling.
So the house cost him $210,000. If he put down 10% he should have a loan balance of about $185-190 thousand. But he is asking $250k. What we need to do is find out how badly the seller wants to sell. And in order to do this we send in a ringer.
When you find a house you would like to buy, have a friend make a low offer on the house. By doing this you will get to see how low the seller will go in price. You will have more information about him than he will have on you and you can use that to your advantage to pay much less.
If you put in a lowball offer yourself, you risk the chance of insulting the seller and they might let their personal feelings get in the way and refuse to sell you the house at any price.
So we have a friend call the listing agent and see the house. He then puts in an offer of say $205,000. The seller will probably say no. But your friend might get a counter offer. And that is what we want. We want to see the sellers reaction. If he sends a counter, that is great. If not, then we did not lose anything.
The counter offer is then the maximum you will have to pay for the house. If the counter is say $225,000, you just saved $25,000. Plus now you can make your offer less than $225,000 and save even more.
If two offers are made on the house in a short time and they are both lower than what the seller was expecting, he will probably lower the price to what the offers are coming in at. His agent will also be pushing him to sell so that she can get her commission and move on to the next client.
Having a friend put in a lowball offer is a great way to test the seller without causing any damage to your negotiations. But make sure the seller never finds out the lowball offer was a set up.
http://www.realestateinvestmentarticles.net/Article/home-buying----70-Ways-for-Home-Buyers-to-Save-Money-When-Buying-a-Home--Tip--19-/1570
In the process of house buying you will find yourself in a similar situation. You want to pay as little as possible for the house, while the seller wants to get as much as he can for the house. The only way to save money on the price, is to get the seller to come down on price. And in order to have that happen, you need to try to determine how low the seller will go.
The house might be listed for $250,000. You agent will be able to tell you what the seller paid for it and when. Let us say the seller bought it two years ago for $180,000. And according to the seller paid $30,000 in upgrades and remodeling.
So the house cost him $210,000. If he put down 10% he should have a loan balance of about $185-190 thousand. But he is asking $250k. What we need to do is find out how badly the seller wants to sell. And in order to do this we send in a ringer.
When you find a house you would like to buy, have a friend make a low offer on the house. By doing this you will get to see how low the seller will go in price. You will have more information about him than he will have on you and you can use that to your advantage to pay much less.
If you put in a lowball offer yourself, you risk the chance of insulting the seller and they might let their personal feelings get in the way and refuse to sell you the house at any price.
So we have a friend call the listing agent and see the house. He then puts in an offer of say $205,000. The seller will probably say no. But your friend might get a counter offer. And that is what we want. We want to see the sellers reaction. If he sends a counter, that is great. If not, then we did not lose anything.
The counter offer is then the maximum you will have to pay for the house. If the counter is say $225,000, you just saved $25,000. Plus now you can make your offer less than $225,000 and save even more.
If two offers are made on the house in a short time and they are both lower than what the seller was expecting, he will probably lower the price to what the offers are coming in at. His agent will also be pushing him to sell so that she can get her commission and move on to the next client.
Having a friend put in a lowball offer is a great way to test the seller without causing any damage to your negotiations. But make sure the seller never finds out the lowball offer was a set up.
http://www.realestateinvestmentarticles.net/Article/home-buying----70-Ways-for-Home-Buyers-to-Save-Money-When-Buying-a-Home--Tip--19-/1570
home buying - "House Hunting Tips for Buyers"
House hunting can actually be an enjoyable experience if you take your time and do your homework. Really! In my years as a Realtor, Investor and just a plain old looker before that I discovered the following ways to make house hunting less stressful and more effective.
Key to it all is first deciding where you'd like to live, then making it your business to learn as much about schools, hospitals, grocery stores, shopping, medical facilities, recreational amenities and so on.
Once you've done that you're ready to investigate about the crime rate. Is it a safe location, or do you need to be considering another location?
And as awkward as it may be to talk about, you want to assess the quality and character of the people who live in the area. Obviously, you can't interview them, but you can get a fairly good sense of their character by the condition of their homes and from the activities you might observe.
For example, if your prospective neighbor has discarded auto parts, household appliances and other stuff in their front yard you might want to reconsider your choice. A poor location when you buy will definitely be a negative factor if and when you decide to resell the home at a later date.
But once you've zeroed in on a good location, you're ready for the next step of finding your dream home. can start to think seriously about searching for your dream home. But instead of spinning your wheels by looking at houses randomly, you should determine what you really want in a house beforehand and be quided by those things in your search.
Make a list of things that are important to you. Do you want a single story house, or do you prefer two stories? Will 3 bedrooms and 2 baths do, or do you really need 4 bedrooms and 2 & 1/2 baths? Making a list will not only save you time, it will also be a big help to your Realtor in planning your viewings.
Next comes the biggie. Get pre-qualified for a mortgage loan before jumping in the car to tour houses. You need to know how much house can you afford, which most people don't know.
Affordability is based upon income, credit status, interest rates, down payment, closing costs and the type of loan selected. By getting pre-qualified by a lending institution you will know what you can afford to spend, which will save you time by establishing the price range you should be looking in before you begin your house hunting tours.
Once armed with information about how much house you can afford you're ready to begin looking at homes. Make notes after each viewing each property, because after 2 - 3 homes they'll start running together and you won't be able to remember the details of each one as you think you will.
Finally, you need your own Realtor; someone who is working for you and is looking out for your interests. When you call the Realtor on a "house for sale" sign you're speaking to the seller's agent, who represents the seller and will be looking after the seller's interests.
Like I started out saying, house hunting can be an enjoyable experience when you take your time and do your homework, but when done wrong it can be a terribly stressful situation. Fun and easy, or difficult and stressful. You decide!
http://www.realestateinvestmentarticles.net/Article/home-buying----House-Hunting-Tips-for-Buyers-/1448
Key to it all is first deciding where you'd like to live, then making it your business to learn as much about schools, hospitals, grocery stores, shopping, medical facilities, recreational amenities and so on.
Once you've done that you're ready to investigate about the crime rate. Is it a safe location, or do you need to be considering another location?
And as awkward as it may be to talk about, you want to assess the quality and character of the people who live in the area. Obviously, you can't interview them, but you can get a fairly good sense of their character by the condition of their homes and from the activities you might observe.
For example, if your prospective neighbor has discarded auto parts, household appliances and other stuff in their front yard you might want to reconsider your choice. A poor location when you buy will definitely be a negative factor if and when you decide to resell the home at a later date.
But once you've zeroed in on a good location, you're ready for the next step of finding your dream home. can start to think seriously about searching for your dream home. But instead of spinning your wheels by looking at houses randomly, you should determine what you really want in a house beforehand and be quided by those things in your search.
Make a list of things that are important to you. Do you want a single story house, or do you prefer two stories? Will 3 bedrooms and 2 baths do, or do you really need 4 bedrooms and 2 & 1/2 baths? Making a list will not only save you time, it will also be a big help to your Realtor in planning your viewings.
Next comes the biggie. Get pre-qualified for a mortgage loan before jumping in the car to tour houses. You need to know how much house can you afford, which most people don't know.
Affordability is based upon income, credit status, interest rates, down payment, closing costs and the type of loan selected. By getting pre-qualified by a lending institution you will know what you can afford to spend, which will save you time by establishing the price range you should be looking in before you begin your house hunting tours.
Once armed with information about how much house you can afford you're ready to begin looking at homes. Make notes after each viewing each property, because after 2 - 3 homes they'll start running together and you won't be able to remember the details of each one as you think you will.
Finally, you need your own Realtor; someone who is working for you and is looking out for your interests. When you call the Realtor on a "house for sale" sign you're speaking to the seller's agent, who represents the seller and will be looking after the seller's interests.
Like I started out saying, house hunting can be an enjoyable experience when you take your time and do your homework, but when done wrong it can be a terribly stressful situation. Fun and easy, or difficult and stressful. You decide!
http://www.realestateinvestmentarticles.net/Article/home-buying----House-Hunting-Tips-for-Buyers-/1448
home buying - "What Is A Real Estate Purchase Option?"
A real estate purchase option is a document that gives someone the right to purchase a piece of property at a fixed price during the term that the real estate purchase option is in effect. During the option period, the owner can not sell the property to anyone else and must sell the property to the purchaser of the option if the purchaser desires the property. The purchaser has the right, but not the obligation, to purchase the property. The purchaser can let the option expire without purchasing the property. Your only lose, in this case, would be the price you paid for the real estate purchase option.
There are three things you must determine at the time that the option is created for the property.
1. How much will you pay for the property if you decide to purchase it? It does not matter if the value of the property goes up or down during the option term, you will be able to purchase the property for the price agreed upon in the option. If the value goes up, you win, but if the value goes down, you should let the option expire and just purchase it for the going value at the time. Your maximum loss is the amount you paid the owner for the real estate purchase option.
2. How long is the term of the option? The term is a fixed amount of time and depends on what you and the owner will agreed upon. Most option contracts have a one or two year term but it can be any amount of time that you agree.
3. How much are you willing to pay for the option? You must purchase the option from the owner of the property. This money belongs to the owner no matter if you decide to purchase the property or let the option expire.
To prevent the owner from selling the property while the option is in effect, you can record the real estate purchase option with the county courthouse. However, you may want to consider the consequences of this action as some mortgage companies will call the loan due if they see a purchase option for the property as they consider it a sale. You should use your judgment for this.
Once you own a real estate purchase option, you control the property. Also, the real estate purchase option is also an asset that may be sold, or assigned to another person if you wish. Look for the next article to see what you can do with your property now that you have secured the purchase option.
http://www.realestateinvestmentarticles.net/Article/home-buying----What-Is-A-Real-Estate-Purchase-Option--/1080
There are three things you must determine at the time that the option is created for the property.
1. How much will you pay for the property if you decide to purchase it? It does not matter if the value of the property goes up or down during the option term, you will be able to purchase the property for the price agreed upon in the option. If the value goes up, you win, but if the value goes down, you should let the option expire and just purchase it for the going value at the time. Your maximum loss is the amount you paid the owner for the real estate purchase option.
2. How long is the term of the option? The term is a fixed amount of time and depends on what you and the owner will agreed upon. Most option contracts have a one or two year term but it can be any amount of time that you agree.
3. How much are you willing to pay for the option? You must purchase the option from the owner of the property. This money belongs to the owner no matter if you decide to purchase the property or let the option expire.
To prevent the owner from selling the property while the option is in effect, you can record the real estate purchase option with the county courthouse. However, you may want to consider the consequences of this action as some mortgage companies will call the loan due if they see a purchase option for the property as they consider it a sale. You should use your judgment for this.
Once you own a real estate purchase option, you control the property. Also, the real estate purchase option is also an asset that may be sold, or assigned to another person if you wish. Look for the next article to see what you can do with your property now that you have secured the purchase option.
http://www.realestateinvestmentarticles.net/Article/home-buying----What-Is-A-Real-Estate-Purchase-Option--/1080
home buying - "Learn To Read Listings For Happy House Hunting"
Sorting through classified ads, online real estate sites and even real estate listings on company web sites can be difficult. It's often hard to tell from an ad if the home you're reading about is the one of your dreams. Unless you intend to visit every possible listing, you have to weed out some possibilities to help guide your hunt for the perfect home. Learning how to read home listings to match your needs can really help.
The key to using listings to your advantage is to have a clearly defined idea of what you're looking for. You need to know what you want in a dream home before you can find one. The same can be said for a starter home or even a mid-stop point along the way to the dream home.
Before you start pouring through the listings in just about any community in the world, you need to do a few things:
1.) The first place to start is to know where you want to live. Be realistic here. If you're budget's a shoestring, don't pick the "best" neighborhood in the city. If you're moving to a location you're unfamiliar with, talk to real estate agents, research neighborhoods, check crime stats, school information and so on for different areas. Once you have a neighborhood or several neighborhoods selected, you can move on.
2.) Now you need to set your budget. What can you afford? Are you pre-qualified for a loan of a set amount? Many banks and mortgage companies offer pre-qualification. This is a great way to ensure you search for only those homes you can afford to buy. This can help ease disappointment and really guide a search, too.
3.) Specifics about a home. How many bedrooms do you need? Bathrooms? Do you require any special features such as a pool, eat-in-kitchen and so on? List these down on a piece of paper. Prioritize features based on must-haves and those you could live without.
Now that you know where you want to live, how much you can spend and the kind of house you'd like to have and the one you'd love to have, those listings will be a whole lot easier to sort through. Read through the listings in the areas you're seeking to buy and jot down the homes that match your qualifications or come close. These are the homes you're likely to want to visit.
Get with your real estate agent or call the lister's agent to get started. Remember when you check out the homes for real to bring your want/need list along with you. Try to find the home that matches your list most closely, but pay close attention as you walk through homes. Look for anything that may be a problem in the future and ask a lot of questions about the home and the neighborhood.
Home listings can be a great resource for finding your ideal home, but in a lot of areas they can be so extensive they overwhelm potential buyers. The best way to make sure you get the home of your dreams, or close to it, is to know what you're looking for.
http://www.realestateinvestmentarticles.net/Article/home-buying----Learn-To-Read-Listings-For-Happy-House-Hunting-/1004
The key to using listings to your advantage is to have a clearly defined idea of what you're looking for. You need to know what you want in a dream home before you can find one. The same can be said for a starter home or even a mid-stop point along the way to the dream home.
Before you start pouring through the listings in just about any community in the world, you need to do a few things:
1.) The first place to start is to know where you want to live. Be realistic here. If you're budget's a shoestring, don't pick the "best" neighborhood in the city. If you're moving to a location you're unfamiliar with, talk to real estate agents, research neighborhoods, check crime stats, school information and so on for different areas. Once you have a neighborhood or several neighborhoods selected, you can move on.
2.) Now you need to set your budget. What can you afford? Are you pre-qualified for a loan of a set amount? Many banks and mortgage companies offer pre-qualification. This is a great way to ensure you search for only those homes you can afford to buy. This can help ease disappointment and really guide a search, too.
3.) Specifics about a home. How many bedrooms do you need? Bathrooms? Do you require any special features such as a pool, eat-in-kitchen and so on? List these down on a piece of paper. Prioritize features based on must-haves and those you could live without.
Now that you know where you want to live, how much you can spend and the kind of house you'd like to have and the one you'd love to have, those listings will be a whole lot easier to sort through. Read through the listings in the areas you're seeking to buy and jot down the homes that match your qualifications or come close. These are the homes you're likely to want to visit.
Get with your real estate agent or call the lister's agent to get started. Remember when you check out the homes for real to bring your want/need list along with you. Try to find the home that matches your list most closely, but pay close attention as you walk through homes. Look for anything that may be a problem in the future and ask a lot of questions about the home and the neighborhood.
Home listings can be a great resource for finding your ideal home, but in a lot of areas they can be so extensive they overwhelm potential buyers. The best way to make sure you get the home of your dreams, or close to it, is to know what you're looking for.
http://www.realestateinvestmentarticles.net/Article/home-buying----Learn-To-Read-Listings-For-Happy-House-Hunting-/1004
home buying - "Yuma Arizona Real Estate: Educating Yourself on Home Buying"
Yuma is a great community to buy a home in. Its spectacular beauty, relaxing environment, wonderfully mild winters, and great recreational opportunities all make Yuma an ideal location to buy a home.
Deciding to buy a home is a big decision for most people. Financially, it's one of the biggest investments you'll make in your lifetime. In fact, generally a home uses up at least 20% to 40% of your gross monthly income. There are few other investments that would require that high of percentage of monthly income.
Before you begin looking for a home in Yuma, it's helpful to take the time to get prepared for the purchase.
The first step is to find a good mortgage agent. Many buyers think they have to wait to find the right home before working on the mortgage. Actually, the opposite is true. When you begin working with a mortgage agent first, you find out a lot of information that helps you in the buying process.
For instance, a mortgage agent will first sit down with you and help you get pre-approved for a loan. The mortgage agent will take down all of your financial information, run a credit check, and give you information on any potential problems that may occur when it comes time to get a loan.
Many home owners ask the mortgage agents to get them prequalified. Prequalification means that essentially the mortgage company goes through the entire process of completing a loan for a certain amount of money. They provide you with a letter that says you are qualified to take a loan out up to that amount. When you make an offer on the home, the buyer may look upon your prequalification letter as a definite advantage. Essentially, it means that your loan will probably close faster than other potential buyers.
Another important factor to finding the best home in Yuma is to work with an excellent real estate agent. Mortgage agents and real estate agents can make all the difference between a successful and unsuccessful attempt to get a home. In fact, mistakes made by real estate and mortgage agents can cost buyers thousands of dollars. That's why it is so essential to find both a mortgage and real estate agent that you can trust.
When you work with quality experts in the mortgage and real estate business, you can be assured of finding a home you love in Yuma. You'll find a great home at a great price, with the right mortgage program. Before long you'll be living in your new home in Yuma, enjoying the quality of life that is unique to Yuma.
http://www.realestateinvestmentarticles.net/Article/home-buying----Yuma-Arizona-Real-Estate--Educating-Yourself-on-Home-Buying-/800
Deciding to buy a home is a big decision for most people. Financially, it's one of the biggest investments you'll make in your lifetime. In fact, generally a home uses up at least 20% to 40% of your gross monthly income. There are few other investments that would require that high of percentage of monthly income.
Before you begin looking for a home in Yuma, it's helpful to take the time to get prepared for the purchase.
The first step is to find a good mortgage agent. Many buyers think they have to wait to find the right home before working on the mortgage. Actually, the opposite is true. When you begin working with a mortgage agent first, you find out a lot of information that helps you in the buying process.
For instance, a mortgage agent will first sit down with you and help you get pre-approved for a loan. The mortgage agent will take down all of your financial information, run a credit check, and give you information on any potential problems that may occur when it comes time to get a loan.
Many home owners ask the mortgage agents to get them prequalified. Prequalification means that essentially the mortgage company goes through the entire process of completing a loan for a certain amount of money. They provide you with a letter that says you are qualified to take a loan out up to that amount. When you make an offer on the home, the buyer may look upon your prequalification letter as a definite advantage. Essentially, it means that your loan will probably close faster than other potential buyers.
Another important factor to finding the best home in Yuma is to work with an excellent real estate agent. Mortgage agents and real estate agents can make all the difference between a successful and unsuccessful attempt to get a home. In fact, mistakes made by real estate and mortgage agents can cost buyers thousands of dollars. That's why it is so essential to find both a mortgage and real estate agent that you can trust.
When you work with quality experts in the mortgage and real estate business, you can be assured of finding a home you love in Yuma. You'll find a great home at a great price, with the right mortgage program. Before long you'll be living in your new home in Yuma, enjoying the quality of life that is unique to Yuma.
http://www.realestateinvestmentarticles.net/Article/home-buying----Yuma-Arizona-Real-Estate--Educating-Yourself-on-Home-Buying-/800
home buying - "How to Make Home Buying Fun"
Fun and purchasing a home are probably two concepts that cannot be further apart.
Instead of being fun, purchasing a home might prove to be nerve-wracking and stressful. This is understandably so since this is an investment that spans a lifetime - a whole set of generations even.
Buyers are intimidated by the various dimensions that make purchasing a home troublesome - the legal aspects, the financial aspects, dealing with brokers, agents, insurance, and others purchase concerns.
But dissecting these roadblocks and adding some spice to you choice of property could make this life-changing decision an enjoyable one.
Step 1: Assess your finances
The question here is can the buyer actually afford payments for a home. The buyer may want to consult a financial adviser as to the strategy he or she may employ in paying for a home. This is imperative especially if the buyer has a troublesome credit history and other financial obligations. The buyer must also reach a compromise between payment capability and desired property.
Step 2: Survey
With the explosion of information in today's age, it becomes more exciting to search for possible properties. Newspapers, advertisements, referrals, brochures, and even the internet all give the buyer more choices and better options. Buyers should take full advantage of this information glut to facilitate his or her decision regarding a house.
Step 3: Learn from Others
If the buyer is a first-timer, he or she does not have to make the common mistakes newbies commit. He or she should contact people who have been in the same circumstance and learn from their experience. This will save the buyer from a great deal of grief later.
Even grizzled veterans of such purchases would do well to seek advice from trusted colleagues on the matter.
Step 4: Find an Suitable Agent
This is one of the most underestimated, yet important aspects of home buying. Most buyers end up with an agent by sheer accident. It would do well for the buyer to do research and contact an agent whose strategy and skills fit the buyer's needs.
A skillful agent can save the buyer a great deal of trouble and is instrumental in a successful sale.
Step 5: Close the deal
A great deal of discussion and paperwork in involved in closing a deal. However, if the preceding steps were accomplished well, this step will most probably be exciting instead of worrying. Here, the buyer and the seller come to terms with the financial details, paperwork, and other details vital to the sale. If this comes up right, the buyer can now come home to an exciting new home.
http://www.realestateinvestmentarticles.net/Article/home-buying----How-to-Make-Home-Buying-Fun-/689
Instead of being fun, purchasing a home might prove to be nerve-wracking and stressful. This is understandably so since this is an investment that spans a lifetime - a whole set of generations even.
Buyers are intimidated by the various dimensions that make purchasing a home troublesome - the legal aspects, the financial aspects, dealing with brokers, agents, insurance, and others purchase concerns.
But dissecting these roadblocks and adding some spice to you choice of property could make this life-changing decision an enjoyable one.
Step 1: Assess your finances
The question here is can the buyer actually afford payments for a home. The buyer may want to consult a financial adviser as to the strategy he or she may employ in paying for a home. This is imperative especially if the buyer has a troublesome credit history and other financial obligations. The buyer must also reach a compromise between payment capability and desired property.
Step 2: Survey
With the explosion of information in today's age, it becomes more exciting to search for possible properties. Newspapers, advertisements, referrals, brochures, and even the internet all give the buyer more choices and better options. Buyers should take full advantage of this information glut to facilitate his or her decision regarding a house.
Step 3: Learn from Others
If the buyer is a first-timer, he or she does not have to make the common mistakes newbies commit. He or she should contact people who have been in the same circumstance and learn from their experience. This will save the buyer from a great deal of grief later.
Even grizzled veterans of such purchases would do well to seek advice from trusted colleagues on the matter.
Step 4: Find an Suitable Agent
This is one of the most underestimated, yet important aspects of home buying. Most buyers end up with an agent by sheer accident. It would do well for the buyer to do research and contact an agent whose strategy and skills fit the buyer's needs.
A skillful agent can save the buyer a great deal of trouble and is instrumental in a successful sale.
Step 5: Close the deal
A great deal of discussion and paperwork in involved in closing a deal. However, if the preceding steps were accomplished well, this step will most probably be exciting instead of worrying. Here, the buyer and the seller come to terms with the financial details, paperwork, and other details vital to the sale. If this comes up right, the buyer can now come home to an exciting new home.
http://www.realestateinvestmentarticles.net/Article/home-buying----How-to-Make-Home-Buying-Fun-/689
"Homes in Phoenix Arizona: Do You Know All the Steps for Buying a Home?
Even experienced home buyers may not know everything they can do to make their Phoenix, Arizona home buying experience be all it can be. Although it is fun to find a new place to call home, it is definitely a serious business transaction. After all, for many people it is the single biggest asset they will ever own in their lives. It may help to know all the steps you can take to make it easier and in the long run even save you money.
It is important for you to use a real estate or buyer agent since buying and selling real estate can become very complicated. As with anything else involving your money, you should shop around for the right person. That basically means that you need to feel comfortable with the person you choose. No matter how many other clients he or she has, you deserve full attention when it is required. Your agent must have enough experience that they can work with a lot of balls in the air when necessary. Some of the things to look for in a good agent when you are buying a Phoenix, Arizona home are:
They stick to your price range and do not try to push you over your limit.
They promptly return your calls, emails, and faxes.
They help negotiate with the seller.
If needed they help you find a good inspector, appraiser, and attorney.
The real estate agent is only part of the equation. You also have the whole area of financing to deal with. There are things you can do to get things moving on that front:
Obtain copies or your credit reports from the three main reporting agencies; Experian, TransUnion, and Equifax. You are entitled to one free copy each year. Check each one for accuracy and get any errors corrected.
Know your own financial picture and how much can you afford to spend on a house and make the monthly payment comfortably? How much if anything do you have for a down payment?
Shop for your lender until you find someone you trust.
Request pre-approval from your lender so you will know for sure the range you can shop in.
A good lender will work hard to get you the best terms for your situation. In other words if you have stellar credit you should get a great rate and the best type of loan. If you have poor or less than perfect credit, your lender should work hard to find you an affordable loan, with the best possible terms. He or she should then explain how to repair your credit rating and how soon you will be able to refinance for lower interest and easier payments.
It is important that you have a great experience when you buy your Phoenix, Arizona home. Choosing the right agent and lender will take the drudgery and unexpected out of your transaction.
http://www.realestateinvestmentarticles.net/Article/home-buying----Homes-in-Phoenix-Arizona--Do-You-Know-All-the-Steps-for-Buying-a-Home--/241
It is important for you to use a real estate or buyer agent since buying and selling real estate can become very complicated. As with anything else involving your money, you should shop around for the right person. That basically means that you need to feel comfortable with the person you choose. No matter how many other clients he or she has, you deserve full attention when it is required. Your agent must have enough experience that they can work with a lot of balls in the air when necessary. Some of the things to look for in a good agent when you are buying a Phoenix, Arizona home are:
They stick to your price range and do not try to push you over your limit.
They promptly return your calls, emails, and faxes.
They help negotiate with the seller.
If needed they help you find a good inspector, appraiser, and attorney.
The real estate agent is only part of the equation. You also have the whole area of financing to deal with. There are things you can do to get things moving on that front:
Obtain copies or your credit reports from the three main reporting agencies; Experian, TransUnion, and Equifax. You are entitled to one free copy each year. Check each one for accuracy and get any errors corrected.
Know your own financial picture and how much can you afford to spend on a house and make the monthly payment comfortably? How much if anything do you have for a down payment?
Shop for your lender until you find someone you trust.
Request pre-approval from your lender so you will know for sure the range you can shop in.
A good lender will work hard to get you the best terms for your situation. In other words if you have stellar credit you should get a great rate and the best type of loan. If you have poor or less than perfect credit, your lender should work hard to find you an affordable loan, with the best possible terms. He or she should then explain how to repair your credit rating and how soon you will be able to refinance for lower interest and easier payments.
It is important that you have a great experience when you buy your Phoenix, Arizona home. Choosing the right agent and lender will take the drudgery and unexpected out of your transaction.
http://www.realestateinvestmentarticles.net/Article/home-buying----Homes-in-Phoenix-Arizona--Do-You-Know-All-the-Steps-for-Buying-a-Home--/241
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