All In Good Taste / June 2006
Home in the Range
Impulse purchases are a way of life for most Americans. In an easy-access, disposable world, it can be a challenge to adapt when the purchase is something of great and lasting value, like a new home.
Although buying a house is more complex than choosing a latte, inexperience and trepidation can be squelched with a little research and some preparation.
Experienced realtors say bad home-buying experiences aren’t due to lack of intelligence or good intentions, but rather from not knowing the right questions to ask and the proper steps to take.
Experts say potential buyers on a tight budget should keep an eye out for a cosmetic “fixer upper.” A lazy seller may not clean or repair their property for prospective buyers. Repainting, tearing up old carpet, replacing worn out appliances, and landscaping can be relatively cheap projects after a good purchase. New buyers just need to be sure they are realistic when assessing whether the defects can be corrected cost efficiently. One person’s trash really can become another person’s treasure.
Buyers should look for motivated sellers. Realtors say the best way to find a motivated seller is simple: Ask questions. Many prospective buyers never ask why a seller is selling, but it immediately determines their level of motivation. Buyers are more likely to get a real deal from someone who needs to move to across the country pending a new job.
A seller in need can be a friend indeed.
Buyers that aren’t in a hurry should ride the real estate wave. Real estate sales go through predictable busy and slow periods. During the slower times there is far less competition from other buyers, plus there may be an even lower price from a motivated seller. The winter holiday season is a good time to shop, and the colder the region, the later the slow period lasts. In warmer regions, business begins to pick up as early as February.
Part of the preparation for buying a home at a good price is to make the family credit more credible. A great credit report card can mean a loan with lower interest rates. Most credit lenders consult a credit score to determine the buyers credit risk, so it’s essential to keep good credit and work to improve less than perfect credit before trying to buy.
To improve a credit score, pay credit card bills and other monthly payments on time, and don’t open multiple credit accounts in a short period of time. Rapid account buildup looks risky to loan officers.
Buyers should do their rate shopping for a specific loan within a focused period of time. Credit scores distinguish between a search for a single loan and a search for many new credit lines, partly by the length of time over which inquiries occur.
New technology allows home shoppers to take the initiative to do at least some of their research online, review statistics about perspective communities and peruse houses for sale.
After the house selected,experts say negotiation is the key factor in getting the home a buyer wants at a fair price. Negotiation means coming to the table with all the necessary information close at hand.
Buyers with their heart set on a certain site should enter negotiations with a good idea of the fair market value of the home they want and an understanding of their own personal upper limit of cost. It’s the best way to prevent getting involved in a bidding war and ending knee-deep in debt.
Buyers looking at well-priced homes in popular areas, should put themselves in the seller’s position, keeping in mind they are looking for the candidate with the best combination of price and sale terms. Pre-approval for a mortgage offers the seller reassurance that they have a serious and financially qualified buyer at the table.
Realtors say buyers willing to invest a little time can make a confident decision they won’t regret. But, they agree that buying a home can be like hailing a taxi. If the first one goes by, another one is just around the corner.
Copyright © 2007 A Woman's View. All rights reserved.
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