Choosing a home can be one of the most important, fun, exciting and nerve-wracking steps in the home buying process. Being such a big decision, you'll want to keep certain things in mind when choosing a home.
Consider Your Home Buying Budget
First and foremost, when choosing a home, start searching only after you know your realistic budget. It would be terrible to fall in love with one or more homes that are outside of your economic means.
Often, home buyers who first look at homes outside their budget range are later dissatisfied when they look at home within their price range. Therefore, you should start your home search within your budget range.
Consider Current and Future Needs
When looking for a house you should consider your current needs and your future needs. For example, consider whether or not you are going to start a family, or whether someone from your family will likely be moving out of the home into their own house or apartment. Consider your commute to work or school, and decide whether or not the commute is something you'll be able to handle on a daily basis.
Conduct Neighborhood Reconnaissance
It's always a good idea to visit a potential home at different times of the day and night to get a feel for the neighborhood. You'll want to see if your potential new home serves as the backstop for a daily stickball or baseball game, or whether or not your home is next door to where the local high school band practices each afternoon.
Walk around the neighborhood to get a good feel for it. Home buyers often find they can learn more from walking around the neighborhood than they would by driving around.
Look for notices of construction or variance requests and try to get an understanding of what, if any, future development will be around your potential new home. Are they expanding the highway so the HOV lane is 10 feet from your backyard?
Talk to the Neighbors
If possible, speak with local residents and find out the inside information on schools, shopping, public services and other factors that you consider important. When it comes to buying a home, information is vital.
Some information can be obtained at the local library. However, information from local residents is likely to be more accurate and current. Of course, you'll need to gather several opinions in order to get a balanced "consensus." Never trust the opinion of just one person.
If you have children, you may want to have them assist you in the information gathering. Have them talk to some kids at the local playground or park to find out about the area. Generally speaking, children are less prone to self-censoring or being "politically correct," so they may provide you with important information.
Conclusion
At the end of the day, you -- as the home buyer -- have to trust your gut instincts and choose a home that gives you a good feeling the moment you pull up to it. Trust your instinct and emotions during the home buying process, and you'll soon know whether you are viewing "just a house," or viewing your new home.
Learn more!
You can learn more about the home buying process by visiting HomeBuyingInstitute.com, the Internet's largest library of home buying advice. Online at: http://www.homebuyinginstitute.com
Article Source: http://EzineArticles.com/?expert=Brandon_Cornett
Wednesday, September 26, 2007
First Time Home Buyers - The 15 Steps of the Home Buying Process
Here are the 15 steps that need to be taken to purchase a home:
1. The Initial Interview
* Determine what you need and want in your new home
* Discuss the parameters of your search
* Discuss financing
2. Get Pre-Qualified By a Lender
* Obtain a pre-qualification letter
3. Property Tours
* View available properties that match your needs and emotions
* Listen to you carefully to find out what features you need in your ideal home
* Provide you with information about the current market and what it means to you
4. Find the Home That Matches Your Needs and Write The Offer
* Writing the offer will take between 1-3 hours
* Complete the purchase agreement contract
* Deliver the earnest money deposit(this will be held until and accepted contact is created)
5. Present the Offer
* Prepare a presentation by highlighting the strengths of your offer and your strengths as a buyer
* Present the offer to the seller and the sellers' real estate professional
* The sellers will either accept, counter or reject the offer
6. Counter-Offer
* Discuss the counter offer and how it relates to your goals, and prepare a response
7. Escrow
* When the offer is accepted and has been signed by all parties, the escrow will be opened
* Your earnest money deposit will be deposited
* The Escrow Officer will order a Preliminary Title Report and send copies to the lender and I
8. Loan Application
* Submit a complete loan application and all the necessary loan documents to your chosen lender
9. The Contingency Period
* Your approval of the sellers Disclosures
* Your approval of the Preliminary Title Report
* Physical inspections and pest inspections
* Property appraisal and loan approval
10. Homeowners Insurance Coverage
* Select an insurance company and discuss coverage
* Give the insurance agent the escrow information(they will need to order a copy of the policy for the new lender prior to escrow closing)
11. Signing Documents at the Title Company
* The lender will send the loan documents directly to the title company
* You will receive copies of the title and lender documents
* You will need a current photo ID
12. Down Payment and Closing Fund
* Bring a cashiers check to the title company(depending on circumstances) several days prior to closing
* The Escrow Officer will prepare a Buyers' estimated closing statement, which will itemize costs and credits, and estimate the total money due
13. Funding
* The lender will wire the funds to the title company
14. Close Of Escrow
* The deed will be recorded at the county recorder's office by the title company(you will receive the original back from the county in approximately six weeks)
* I will coordinate the transfer of the house keys
15. It's Time to Move In!
Hamid Grinage sells Oakland Ca real estate with Prudential California Realty. His Oakland real estate website lets you search the MLS for real estate in Oakland and the Bay Area 24/7 using the latest technology.
Article Source: http://EzineArticles.com/?expert=Hamid_Grinage
1. The Initial Interview
* Determine what you need and want in your new home
* Discuss the parameters of your search
* Discuss financing
2. Get Pre-Qualified By a Lender
* Obtain a pre-qualification letter
3. Property Tours
* View available properties that match your needs and emotions
* Listen to you carefully to find out what features you need in your ideal home
* Provide you with information about the current market and what it means to you
4. Find the Home That Matches Your Needs and Write The Offer
* Writing the offer will take between 1-3 hours
* Complete the purchase agreement contract
* Deliver the earnest money deposit(this will be held until and accepted contact is created)
5. Present the Offer
* Prepare a presentation by highlighting the strengths of your offer and your strengths as a buyer
* Present the offer to the seller and the sellers' real estate professional
* The sellers will either accept, counter or reject the offer
6. Counter-Offer
* Discuss the counter offer and how it relates to your goals, and prepare a response
7. Escrow
* When the offer is accepted and has been signed by all parties, the escrow will be opened
* Your earnest money deposit will be deposited
* The Escrow Officer will order a Preliminary Title Report and send copies to the lender and I
8. Loan Application
* Submit a complete loan application and all the necessary loan documents to your chosen lender
9. The Contingency Period
* Your approval of the sellers Disclosures
* Your approval of the Preliminary Title Report
* Physical inspections and pest inspections
* Property appraisal and loan approval
10. Homeowners Insurance Coverage
* Select an insurance company and discuss coverage
* Give the insurance agent the escrow information(they will need to order a copy of the policy for the new lender prior to escrow closing)
11. Signing Documents at the Title Company
* The lender will send the loan documents directly to the title company
* You will receive copies of the title and lender documents
* You will need a current photo ID
12. Down Payment and Closing Fund
* Bring a cashiers check to the title company(depending on circumstances) several days prior to closing
* The Escrow Officer will prepare a Buyers' estimated closing statement, which will itemize costs and credits, and estimate the total money due
13. Funding
* The lender will wire the funds to the title company
14. Close Of Escrow
* The deed will be recorded at the county recorder's office by the title company(you will receive the original back from the county in approximately six weeks)
* I will coordinate the transfer of the house keys
15. It's Time to Move In!
Hamid Grinage sells Oakland Ca real estate with Prudential California Realty. His Oakland real estate website lets you search the MLS for real estate in Oakland and the Bay Area 24/7 using the latest technology.
Article Source: http://EzineArticles.com/?expert=Hamid_Grinage
Home Buying Tip: 7 Ways to Avoid Unethical Lenders
Purpose of this home buying tip: To give you the information you need to protect yourself from unethical or "predatory" lenders during the home buying process.
What's a Predatory Lender?
Unethical lenders are commonly referred to as "predatory" lenders. It's a fitting description, because just like the lion preys upon the weakest of the herd, these lenders prey upon the most uniformed of home buyers.
Some predatory lenders lure you in with big promises, such as low rates, easy qualification and flexible terms. Others use the "only chance" ploy, trying to convince you that they are your only hope for a mortgage loan. By the time you realize what has happened, you've become a victim of loan fraud.
How Can I Protect Myself?
Common sense goes along way to protect you from predatory lenders. Trust your "gut" instincts during the home buying process. If something doesn't feel right, it's probably not.
Here are seven more ways to avoid predatory lenders:
1. Educate Yourself
Educate yourself before buying a home. Your education should include the types of mortgages, how the mortgage process works, what rights you have under the RESPA act and more. You can start your education by visiting HomeBuyingInstitute.com, the Internet's largest library of professional home buying advice.
2. Get Professional Help
Seek professional help from a real estate agent. Agent fees are nominal when compared to the price you'll pay for a new home. And the protection and advice they can offer are priceless.
3. Know Your Market
Start following real estate trends in your area. Get information about the prices of other homes nearby. Don't be tricked into paying too much.
4. Compare Lenders
Shop for a mortgage lender and compare their costs. By comparing several lenders, you'll be more likely to spot red flags, such as unusually low interests rates or other "to good to be true" promises.
5. Be Honest
Never let a mortgage lender persuade you to make false statements on your mortgage application. You are solely responsible for the information you put onto such documents.
6. Read the Fine Print
Take your time when reviewing mortgage documents. If somebody rushes you to sign something, tell them goodbye. Have your agent review the documents with you, or hire a real estate attorney if necessary. Never sign a document until you fully understand it.
7. Don't Sign Blank Areas
In your mortgage application, make sure there are no blank areas to be "filled in later." If there are blanks, mark them with "N/A" or cross them out.
Conclusion
Trust your instincts when buying a home, ask plenty of questions, and read all the fine print. If a deal sounds too good to be true, it probably is!
* Copyright 2006, Brandon Cornett. You may republish this article online provided you keep the byline, author's note, and active hyperlinks.
Learn more:
For more home buying tips, visit HomeBuyingInstitute.com -- the Internet's largest library of home buying articles and advice. Online at http://www.HomeBuyingInstitute.com
Article Source: http://EzineArticles.com/?expert=Brandon_Cornett
What's a Predatory Lender?
Unethical lenders are commonly referred to as "predatory" lenders. It's a fitting description, because just like the lion preys upon the weakest of the herd, these lenders prey upon the most uniformed of home buyers.
Some predatory lenders lure you in with big promises, such as low rates, easy qualification and flexible terms. Others use the "only chance" ploy, trying to convince you that they are your only hope for a mortgage loan. By the time you realize what has happened, you've become a victim of loan fraud.
How Can I Protect Myself?
Common sense goes along way to protect you from predatory lenders. Trust your "gut" instincts during the home buying process. If something doesn't feel right, it's probably not.
Here are seven more ways to avoid predatory lenders:
1. Educate Yourself
Educate yourself before buying a home. Your education should include the types of mortgages, how the mortgage process works, what rights you have under the RESPA act and more. You can start your education by visiting HomeBuyingInstitute.com, the Internet's largest library of professional home buying advice.
2. Get Professional Help
Seek professional help from a real estate agent. Agent fees are nominal when compared to the price you'll pay for a new home. And the protection and advice they can offer are priceless.
3. Know Your Market
Start following real estate trends in your area. Get information about the prices of other homes nearby. Don't be tricked into paying too much.
4. Compare Lenders
Shop for a mortgage lender and compare their costs. By comparing several lenders, you'll be more likely to spot red flags, such as unusually low interests rates or other "to good to be true" promises.
5. Be Honest
Never let a mortgage lender persuade you to make false statements on your mortgage application. You are solely responsible for the information you put onto such documents.
6. Read the Fine Print
Take your time when reviewing mortgage documents. If somebody rushes you to sign something, tell them goodbye. Have your agent review the documents with you, or hire a real estate attorney if necessary. Never sign a document until you fully understand it.
7. Don't Sign Blank Areas
In your mortgage application, make sure there are no blank areas to be "filled in later." If there are blanks, mark them with "N/A" or cross them out.
Conclusion
Trust your instincts when buying a home, ask plenty of questions, and read all the fine print. If a deal sounds too good to be true, it probably is!
* Copyright 2006, Brandon Cornett. You may republish this article online provided you keep the byline, author's note, and active hyperlinks.
Learn more:
For more home buying tips, visit HomeBuyingInstitute.com -- the Internet's largest library of home buying articles and advice. Online at http://www.HomeBuyingInstitute.com
Article Source: http://EzineArticles.com/?expert=Brandon_Cornett
Ten Questions To Ask Before You Buy A Property
You're in the market for a property and stumble upon the perfect 3-bedroom house in the neighbourhood of your choice. The asking price is within budget. How do you know if you're paying too much or if the property is something you should even make an offer on?
The answer:
information. Going into negotiations armed with accurate, up-to-date information gives you a competitive edge over less-informed buyers, boosts your confidence levels, puts the real estate agent on notice that you know what you are talking about, and increases your likelihood of securing the property you want at the right price.
One of the best ways of obtaining information is by asking. Ask open-ended questions, those that open the way to more questions and more information, and eventually – the right answers.
Here are ten useful questions every buyer should be armed with when talking with the vendors, or what is more likely, the real estate agent.
1. Why are the vendors asking this price for the property?
If you've done your homework beforehand, you would already have an idea of what would be a reasonable price range the property can fetch.
By asking the basis for the asking price, you are trying to find out whether the figure is backed by comparable sales in the neighbourhood, or if it is something plucked out of the air by either the vendor or the agent. The real estate industry is notorious for commission rage, which can drive agents to do almost anything to secure a listing and the commission that follows when the property is sold.
2. Has the price been reduced while it was on the market?
If it has, this tells you that the vendor's initial expectations may have been on the high side, and he has since had to reduce the price to something the market will realistically accept. A vendor who may be feeling somewhat deflated over a price reduction may be more open to negotiating with you.
3. How long has the property been on the market?
The longer a property has been on the market with no takers, the more likely the vendor will be prepared to be flexible about the asking price. In contrast, if the property has been newly listed, the vendor may not be so flexible because he wants to wait and see if better offers come along. Suppose you find out that a property has been on the market for 3 months. From your own due diligence, you may even be able to figure out why. For instance, the property may be on the main road, or next to a school, or perhaps it has an electrical substation on it. Knowing this can give you additional leverage during negotiations, assuming you aren't already put off making an offer.
4. Why are the vendors selling?
Are the vendors moving interstate? Upgrading to a bigger home? Has there been a divorce or death in the family? Such changes in circumstances could make the vendors motivated to sell quickly so they can move on with their lives. A motivated vendor could present an opportunity for a shrewd buyer.
5. What offers have the vendors had?
If there have been plenty of offers, you know you have competition, and you will need to be prepared to offer more than you originally planned if you want a decent chance of securing the property. On the other hand, if there have been no offers, the vendor may be more open to negotiations, giving you leeway to present an offer below the asking price.
There is another possible scenario: there have been several offers, but the vendors have turned them all down because the price wasn't right or the conditions were too restrictive. Knowing why the previous offers were rejected gives you additional information to factor into your decision-making, and the opportunity to present your offer with the best possible chance of success.
6. When do the occupants have to move out?
Are the current occupants the owners or tenants? If they are tenants, their stay would be subject to the terms of the tenancy agreement and whether they wish to stay on. If they are the owners, you would want to know if they are in a hurry to move. For instance, they may have bought another property and their new property is due for settlement. If you are able to offer a quick settlement, the vendors would appreciate it and may be more prepared to accept a lower offer than they otherwise would have.
7. What price will you take?
The asking price is not the final price that the vendors are prepared to accept. They may be flexible within a certain range, say $5,000.
8. What's included in the sale?
The agent may tell you "anything that is fixed to the house stays", but for your own protection, you should ask specific questions. Does the dishwasher come with the house? Will the light shades remain or will the vendors take them, leaving only the globes? What about the cubby house in the backyard? The inclusions and exclusions (if you prefer the house as bare as possible) are another opportunity to negotiate a win-win deal.
9. How flexible is the vendor with contract conditions?
In contracts of sale, it is standard for the buyer to specify that the purchase is subject to certain conditions. The more common ones are:
*Subject to finance: This means that if you aren't able to obtain loan approval from your lender, you are legally entitled to cancel the contract and have your deposit refunded.
*Subject to satisfactory pest and building inspection: As a buyer, you are entitled to engage qualified professionals to physically inspect the property to see if there are any problems with termites, timber rot, electrical installations and the like. If you are not satisfied with the report outcome, you can use the repairs required as a bargaining tool in negotiations.
A flexible vendor would allow you to include most, if not all, of your conditions for buying the property. Some vendors, however, may not want the hassle because they want a quick sale. If you have too many conditions, they may just reject your offer and sell the property to a less demanding buyer.
10. Is there anything else I need to know?
You never know what the vendor or agent might say if you ask this question. In their efforts to close the sale, they may unwittingly disclose valuable information that could help you make that final call.
Serena Tan is a writer and career coach living in Melbourne, Australia. She helps people evaluate their careers, health and wellness, personal growth, and ethical ways of making money online.
Thinking of firing the boss?
Before you commit to being a home-based business owner, find out if it really suits you. Use the 16-point Business Evaluation Checklist at http://GreenFamilyOrganics.com/
Article Source: http://EzineArticles.com/?expert=Serena_Tan
The answer:
information. Going into negotiations armed with accurate, up-to-date information gives you a competitive edge over less-informed buyers, boosts your confidence levels, puts the real estate agent on notice that you know what you are talking about, and increases your likelihood of securing the property you want at the right price.
One of the best ways of obtaining information is by asking. Ask open-ended questions, those that open the way to more questions and more information, and eventually – the right answers.
Here are ten useful questions every buyer should be armed with when talking with the vendors, or what is more likely, the real estate agent.
1. Why are the vendors asking this price for the property?
If you've done your homework beforehand, you would already have an idea of what would be a reasonable price range the property can fetch.
By asking the basis for the asking price, you are trying to find out whether the figure is backed by comparable sales in the neighbourhood, or if it is something plucked out of the air by either the vendor or the agent. The real estate industry is notorious for commission rage, which can drive agents to do almost anything to secure a listing and the commission that follows when the property is sold.
2. Has the price been reduced while it was on the market?
If it has, this tells you that the vendor's initial expectations may have been on the high side, and he has since had to reduce the price to something the market will realistically accept. A vendor who may be feeling somewhat deflated over a price reduction may be more open to negotiating with you.
3. How long has the property been on the market?
The longer a property has been on the market with no takers, the more likely the vendor will be prepared to be flexible about the asking price. In contrast, if the property has been newly listed, the vendor may not be so flexible because he wants to wait and see if better offers come along. Suppose you find out that a property has been on the market for 3 months. From your own due diligence, you may even be able to figure out why. For instance, the property may be on the main road, or next to a school, or perhaps it has an electrical substation on it. Knowing this can give you additional leverage during negotiations, assuming you aren't already put off making an offer.
4. Why are the vendors selling?
Are the vendors moving interstate? Upgrading to a bigger home? Has there been a divorce or death in the family? Such changes in circumstances could make the vendors motivated to sell quickly so they can move on with their lives. A motivated vendor could present an opportunity for a shrewd buyer.
5. What offers have the vendors had?
If there have been plenty of offers, you know you have competition, and you will need to be prepared to offer more than you originally planned if you want a decent chance of securing the property. On the other hand, if there have been no offers, the vendor may be more open to negotiations, giving you leeway to present an offer below the asking price.
There is another possible scenario: there have been several offers, but the vendors have turned them all down because the price wasn't right or the conditions were too restrictive. Knowing why the previous offers were rejected gives you additional information to factor into your decision-making, and the opportunity to present your offer with the best possible chance of success.
6. When do the occupants have to move out?
Are the current occupants the owners or tenants? If they are tenants, their stay would be subject to the terms of the tenancy agreement and whether they wish to stay on. If they are the owners, you would want to know if they are in a hurry to move. For instance, they may have bought another property and their new property is due for settlement. If you are able to offer a quick settlement, the vendors would appreciate it and may be more prepared to accept a lower offer than they otherwise would have.
7. What price will you take?
The asking price is not the final price that the vendors are prepared to accept. They may be flexible within a certain range, say $5,000.
8. What's included in the sale?
The agent may tell you "anything that is fixed to the house stays", but for your own protection, you should ask specific questions. Does the dishwasher come with the house? Will the light shades remain or will the vendors take them, leaving only the globes? What about the cubby house in the backyard? The inclusions and exclusions (if you prefer the house as bare as possible) are another opportunity to negotiate a win-win deal.
9. How flexible is the vendor with contract conditions?
In contracts of sale, it is standard for the buyer to specify that the purchase is subject to certain conditions. The more common ones are:
*Subject to finance: This means that if you aren't able to obtain loan approval from your lender, you are legally entitled to cancel the contract and have your deposit refunded.
*Subject to satisfactory pest and building inspection: As a buyer, you are entitled to engage qualified professionals to physically inspect the property to see if there are any problems with termites, timber rot, electrical installations and the like. If you are not satisfied with the report outcome, you can use the repairs required as a bargaining tool in negotiations.
A flexible vendor would allow you to include most, if not all, of your conditions for buying the property. Some vendors, however, may not want the hassle because they want a quick sale. If you have too many conditions, they may just reject your offer and sell the property to a less demanding buyer.
10. Is there anything else I need to know?
You never know what the vendor or agent might say if you ask this question. In their efforts to close the sale, they may unwittingly disclose valuable information that could help you make that final call.
Serena Tan is a writer and career coach living in Melbourne, Australia. She helps people evaluate their careers, health and wellness, personal growth, and ethical ways of making money online.
Thinking of firing the boss?
Before you commit to being a home-based business owner, find out if it really suits you. Use the 16-point Business Evaluation Checklist at http://GreenFamilyOrganics.com/
Article Source: http://EzineArticles.com/?expert=Serena_Tan
Ten Questions To Ask Before You Buy A Property
You're in the market for a property and stumble upon the perfect 3-bedroom house in the neighbourhood of your choice. The asking price is within budget. How do you know if you're paying too much or if the property is something you should even make an offer on?
The answer:
information. Going into negotiations armed with accurate, up-to-date information gives you a competitive edge over less-informed buyers, boosts your confidence levels, puts the real estate agent on notice that you know what you are talking about, and increases your likelihood of securing the property you want at the right price.
One of the best ways of obtaining information is by asking. Ask open-ended questions, those that open the way to more questions and more information, and eventually – the right answers.
Here are ten useful questions every buyer should be armed with when talking with the vendors, or what is more likely, the real estate agent.
1. Why are the vendors asking this price for the property?
If you've done your homework beforehand, you would already have an idea of what would be a reasonable price range the property can fetch.
By asking the basis for the asking price, you are trying to find out whether the figure is backed by comparable sales in the neighbourhood, or if it is something plucked out of the air by either the vendor or the agent. The real estate industry is notorious for commission rage, which can drive agents to do almost anything to secure a listing and the commission that follows when the property is sold.
2. Has the price been reduced while it was on the market?
If it has, this tells you that the vendor's initial expectations may have been on the high side, and he has since had to reduce the price to something the market will realistically accept. A vendor who may be feeling somewhat deflated over a price reduction may be more open to negotiating with you.
3. How long has the property been on the market?
The longer a property has been on the market with no takers, the more likely the vendor will be prepared to be flexible about the asking price. In contrast, if the property has been newly listed, the vendor may not be so flexible because he wants to wait and see if better offers come along. Suppose you find out that a property has been on the market for 3 months. From your own due diligence, you may even be able to figure out why. For instance, the property may be on the main road, or next to a school, or perhaps it has an electrical substation on it. Knowing this can give you additional leverage during negotiations, assuming you aren't already put off making an offer.
4. Why are the vendors selling?
Are the vendors moving interstate? Upgrading to a bigger home? Has there been a divorce or death in the family? Such changes in circumstances could make the vendors motivated to sell quickly so they can move on with their lives. A motivated vendor could present an opportunity for a shrewd buyer.
5. What offers have the vendors had?
If there have been plenty of offers, you know you have competition, and you will need to be prepared to offer more than you originally planned if you want a decent chance of securing the property. On the other hand, if there have been no offers, the vendor may be more open to negotiations, giving you leeway to present an offer below the asking price.
There is another possible scenario: there have been several offers, but the vendors have turned them all down because the price wasn't right or the conditions were too restrictive. Knowing why the previous offers were rejected gives you additional information to factor into your decision-making, and the opportunity to present your offer with the best possible chance of success.
6. When do the occupants have to move out?
Are the current occupants the owners or tenants? If they are tenants, their stay would be subject to the terms of the tenancy agreement and whether they wish to stay on. If they are the owners, you would want to know if they are in a hurry to move. For instance, they may have bought another property and their new property is due for settlement. If you are able to offer a quick settlement, the vendors would appreciate it and may be more prepared to accept a lower offer than they otherwise would have.
7. What price will you take?
The asking price is not the final price that the vendors are prepared to accept. They may be flexible within a certain range, say $5,000.
8. What's included in the sale?
The agent may tell you "anything that is fixed to the house stays", but for your own protection, you should ask specific questions. Does the dishwasher come with the house? Will the light shades remain or will the vendors take them, leaving only the globes? What about the cubby house in the backyard? The inclusions and exclusions (if you prefer the house as bare as possible) are another opportunity to negotiate a win-win deal.
9. How flexible is the vendor with contract conditions?
In contracts of sale, it is standard for the buyer to specify that the purchase is subject to certain conditions. The more common ones are:
*Subject to finance: This means that if you aren't able to obtain loan approval from your lender, you are legally entitled to cancel the contract and have your deposit refunded.
*Subject to satisfactory pest and building inspection: As a buyer, you are entitled to engage qualified professionals to physically inspect the property to see if there are any problems with termites, timber rot, electrical installations and the like. If you are not satisfied with the report outcome, you can use the repairs required as a bargaining tool in negotiations.
A flexible vendor would allow you to include most, if not all, of your conditions for buying the property. Some vendors, however, may not want the hassle because they want a quick sale. If you have too many conditions, they may just reject your offer and sell the property to a less demanding buyer.
10. Is there anything else I need to know?
You never know what the vendor or agent might say if you ask this question. In their efforts to close the sale, they may unwittingly disclose valuable information that could help you make that final call.
Serena Tan is a writer and career coach living in Melbourne, Australia. She helps people evaluate their careers, health and wellness, personal growth, and ethical ways of making money online.
Thinking of firing the boss?
Before you commit to being a home-based business owner, find out if it really suits you. Use the 16-point Business Evaluation Checklist at http://GreenFamilyOrganics.com/
Article Source: http://EzineArticles.com/?expert=Serena_Tan
The answer:
information. Going into negotiations armed with accurate, up-to-date information gives you a competitive edge over less-informed buyers, boosts your confidence levels, puts the real estate agent on notice that you know what you are talking about, and increases your likelihood of securing the property you want at the right price.
One of the best ways of obtaining information is by asking. Ask open-ended questions, those that open the way to more questions and more information, and eventually – the right answers.
Here are ten useful questions every buyer should be armed with when talking with the vendors, or what is more likely, the real estate agent.
1. Why are the vendors asking this price for the property?
If you've done your homework beforehand, you would already have an idea of what would be a reasonable price range the property can fetch.
By asking the basis for the asking price, you are trying to find out whether the figure is backed by comparable sales in the neighbourhood, or if it is something plucked out of the air by either the vendor or the agent. The real estate industry is notorious for commission rage, which can drive agents to do almost anything to secure a listing and the commission that follows when the property is sold.
2. Has the price been reduced while it was on the market?
If it has, this tells you that the vendor's initial expectations may have been on the high side, and he has since had to reduce the price to something the market will realistically accept. A vendor who may be feeling somewhat deflated over a price reduction may be more open to negotiating with you.
3. How long has the property been on the market?
The longer a property has been on the market with no takers, the more likely the vendor will be prepared to be flexible about the asking price. In contrast, if the property has been newly listed, the vendor may not be so flexible because he wants to wait and see if better offers come along. Suppose you find out that a property has been on the market for 3 months. From your own due diligence, you may even be able to figure out why. For instance, the property may be on the main road, or next to a school, or perhaps it has an electrical substation on it. Knowing this can give you additional leverage during negotiations, assuming you aren't already put off making an offer.
4. Why are the vendors selling?
Are the vendors moving interstate? Upgrading to a bigger home? Has there been a divorce or death in the family? Such changes in circumstances could make the vendors motivated to sell quickly so they can move on with their lives. A motivated vendor could present an opportunity for a shrewd buyer.
5. What offers have the vendors had?
If there have been plenty of offers, you know you have competition, and you will need to be prepared to offer more than you originally planned if you want a decent chance of securing the property. On the other hand, if there have been no offers, the vendor may be more open to negotiations, giving you leeway to present an offer below the asking price.
There is another possible scenario: there have been several offers, but the vendors have turned them all down because the price wasn't right or the conditions were too restrictive. Knowing why the previous offers were rejected gives you additional information to factor into your decision-making, and the opportunity to present your offer with the best possible chance of success.
6. When do the occupants have to move out?
Are the current occupants the owners or tenants? If they are tenants, their stay would be subject to the terms of the tenancy agreement and whether they wish to stay on. If they are the owners, you would want to know if they are in a hurry to move. For instance, they may have bought another property and their new property is due for settlement. If you are able to offer a quick settlement, the vendors would appreciate it and may be more prepared to accept a lower offer than they otherwise would have.
7. What price will you take?
The asking price is not the final price that the vendors are prepared to accept. They may be flexible within a certain range, say $5,000.
8. What's included in the sale?
The agent may tell you "anything that is fixed to the house stays", but for your own protection, you should ask specific questions. Does the dishwasher come with the house? Will the light shades remain or will the vendors take them, leaving only the globes? What about the cubby house in the backyard? The inclusions and exclusions (if you prefer the house as bare as possible) are another opportunity to negotiate a win-win deal.
9. How flexible is the vendor with contract conditions?
In contracts of sale, it is standard for the buyer to specify that the purchase is subject to certain conditions. The more common ones are:
*Subject to finance: This means that if you aren't able to obtain loan approval from your lender, you are legally entitled to cancel the contract and have your deposit refunded.
*Subject to satisfactory pest and building inspection: As a buyer, you are entitled to engage qualified professionals to physically inspect the property to see if there are any problems with termites, timber rot, electrical installations and the like. If you are not satisfied with the report outcome, you can use the repairs required as a bargaining tool in negotiations.
A flexible vendor would allow you to include most, if not all, of your conditions for buying the property. Some vendors, however, may not want the hassle because they want a quick sale. If you have too many conditions, they may just reject your offer and sell the property to a less demanding buyer.
10. Is there anything else I need to know?
You never know what the vendor or agent might say if you ask this question. In their efforts to close the sale, they may unwittingly disclose valuable information that could help you make that final call.
Serena Tan is a writer and career coach living in Melbourne, Australia. She helps people evaluate their careers, health and wellness, personal growth, and ethical ways of making money online.
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