If you’re planning on buying a house, you shouldn’t proceed until you are well informed and prepared. Here are some helpful tips you should always keep in mind.
Nowadays with the economy as it is, it’s always better to secure some financing before beginning the process of looking for a house because the loan process will help you to have a better idea of how much you will actually have to spend. Also, having a pre- approved letter from a lender will give you more favor, especially in a competitive market.
Remember that a realtor represents the seller. Also remember that the higher the sales price the higher the realtors commission. Your goal obviously is to get the house you want at the lowest possible price. You will need to determine on your own what the real value of the house you are looking at, is! Realtors will tend to convince you that it is probably worth a little more then it is. Many realtors will give you a list of other houses for sale and compare them to this house and try to convince you of what the value of the house is. Here is a golden rule that you should never forget. Value is not based on what other houses are selling for. Value is based on what other similar houses in the neighborhood have closed for. That means that they actually were recently purchased and closed. A seller may thing that their castle is worth $500,000 and list it for sale at that. If you are trying to buy the house next to him and it is listed for $450,000 and it seems to be very similar, you might think that the $450,000 is a bargain. Not necessarily. Look for what other similar houses in the neighborhood closed for. They may have been closing for $400,000. So just because someone listed their house for $500,000 that does not mean that that is its real value! Please read the post on determining value to get a more indepth understanding of this critical part of flipping houses!
You will want to find out what condition the house is in, so always have a home inspection done no matter how great the property may look. There are often many hidden problems that only a qualified inspector can detect. This will tell you how much you need to invest on the repairs, if needed, and to have everything ready before you move in. You should be able to get a complete home inspection for around $225. Finding a house and moving in is tedious and complicated enough, without having moved in to find out you’re roof is leaking!
Topics: Buying a house, Foreclosures, Investment Property, Short Sale, Tricks
