THINKING OF BUYING A HOUSE 10 TIPS YOU SHOULD FOLLOW
THINKING OF BUYING A HOUSE 10 TIPS YOU SHOULD FOLLOW
1. Don't buy if you can't stay put.
If you can't commit to
remaining in one place for at least a few years, then owning is probably not
for you, at least not yet. With the transaction costs of buying and selling a
home, you may end up losing money if you sell any sooner - even in a rising
market. When prices are falling, it's an even worse proposition.
2. Start by shoring up your credit. Since you most likely
will need to get a mortgage to buy a house, you must make sure your credit
history is as clean as possible. A few months before you start house hunting,
get copies of your credit report. Make sure the facts are correct, and fix any
problems you discover.
3. Aim for a home you can really afford. The rule of thumb is
that you can buy housing that runs about two-and-one-half times your annual
salary. But you'll do better to use one of many calculators available online to
get a better handle on how your income, debts, and expenses affect what you can
4. If you can't put down the usual 20 percent,
you may still qualify for a loan. There are a variety of
public and private lenders who, if you qualify, offer low-interest mortgages
that require a small down payment.
5. Buy in a district with good schools. In most areas, this
advice applies even if you don't have school-age children. Reason: When it
comes time to sell, you'll learn that strong school districts are a top
priority for many home buyers, thus helping to boost property values.
6. Get professional help.
Even though the Internet
gives buyers unprecedented access to home listings, most new buyers (and many
more experienced ones) are better off using a professional agent. Look for an
exclusive buyer agent, if possible, who will have your interests at heart and
can help you with strategies during the bidding process.
7. Choose carefully between points and rate. When picking a mortgage,
you usually have the option of paying additional points -- a portion of the
interest that you pay at closing -- in exchange for a lower interest rate. If
you stay in the house for a long time -- say three to five years or more --
it's usually a better deal to take the points. The lower interest rate will
save you more in the long run.
8. Before house hunting, get pre-approved. Getting pre-approved
will you save yourself the grief of looking at houses you can't afford and put
you in a better position to make a serious offer when you do find the right
house. Not to be confused with pre-qualification, which is based on a cursory
review of your finances, pre-approval from a lender is based on your actual
income, debt and credit history.
9. Do your homework before bidding. Your opening bid should
be based on the sales trend of similar homes in the neighborhood. So before
making it, consider sales of similar homes in the last three months. If homes
have recently sold at 5 percent less than the asking price, you should make a
bid that's about eight to 10 percent lower than what the seller is asking.
10. Hire a home inspector. Sure, your lender will
require a home appraisal anyway. But that's just the bank's way of determining
whether the house is worth the price you've agreed to pay. Separately, you
should hire your own home inspector, preferably an engineer with experience in
doing home surveys in the area where you are buying. His or her job will be to
point out potential problems that could require costly repairs down the road.
I am Bob Schmalz the founder and Broker of West Los Angeles Real Estate Group. We are specialists in Santa Monica, Pacific Palisades , Brentwood, Bel Air and Beverly Hills just to name a few of the communities on the West Side Of L.A. that we have the knowledge to sell or find that perfect house for you.
Broker Lic #01813025
West LA Real Estate Group / Rodeo Realty firstname.lastname@example.org 310.505.5571
11940 San Vicente Blvd Suite #100
Los Angeles, CA 90049
I am Bob Schmalz a California Licensed Real Estate Broker, I am the founder and owner of West Los Angeles Real Estate Group, handling all Real Estate needs from residential to investments To name a few of the cities we cover in West Los Angeles; Beverly Hills, Santa Monica, Brentwood , Pacific Palisades and Malibu are some of the most popular. Our beliefs are that our clients should have the knowledge they need to make decisions in there Real Estate Goals. In this way our clients helps us make the right decisions for themselves.
FIRST TIME HOMEBUYERS:INTEREST RATES BELOW 4% + LOW DOWN PA
"Bob both bought and sold a house for me. You could not ask for a better deal maker.
In this day and age of the internet and Redfin, we don't necessarily need a broker to find us properties. Bob, however, did find me my dream home. His advice on the buying strategy was out of this world. He convinced the seller and his agent to accept my offer before the open house. The seller had three other offers before the open house, but Bob sold them on me by putting together a full package including my resume to convince them that I was a serious buyer who would be able to close with no issues. The open house came and the seller received 10 backup offers. If he hadn't advised me on the strategy we used, I would have been in the middle of a bidding war on the house. And to cap it off, the accepted offer was below their listing price.
Bob knows the West LA market very well, but much more importantly, is one of the best salesman I've ever met. When you are negotiating, you would not want him on the other side."