Monday, February 29, 2016
Nine Ways to Get More Money When You Buy a House
In a few weeks, with new listings popping up like flower buds, spring's real estate market will be approaching full bloom. If you plan to buy a house this year, here are my tips to help you get the most for your money.
1. Your Credit Rating
Preserve it. Starting today, don't make any major purchases, open any new credit card accounts, or move your money around. These actions sound alarm bells to the mortgage lender who will be approving (or declining) your loan.
2. Preapproved Loan
Get one. A preapproved loan shows real estate agents and home sellers that you mean business. A preapproved loan also saves you from looking at homes you can't afford.
3. "Timing" the Market
Forget it. Trying to "time" the real estate market to get the most house for the least amount of money is a fool's errand. I tell clients that the best time to buy is when you find a house you want at a price you can afford.
4. Home Inspection
When you're serious about a property, hire a professional to inspect it inside and out. If the home inspection reveals significant problems, use them to renegotiate the sale price.
5. Property Survey
Just like a home inspection, get the property surveyed. With a professional survey, you'll know the exact property lines and eliminate the possibility of future disputes. This is a task your attorney will arrange prior to closing.
6. Price of Homeownership
Before you buy any house, remember that it's going to cost you more than the monthly mortgage payment. Confer with your agent and use a calculator to add up the cost of utilities, home maintenance, repairs, property taxes, and potential homeowner association dues.
7. Living There
Get a sense of the neighborhood by driving through the area in the morning, afternoon, and evening. Drive your commute to and from work. Check out nearby supermarkets, shops, restaurants, and parks. And remember: whether you have children or not, the local school system is always a priority when selling a home.
8. Writing a Sales Contract
Determine your initial offer by what you can afford and what intensive research suggests a home is worth. Compare your offer to recent sale prices of similar homes in and around the neighborhood or subdivision. Be fair and reasonable. To insult the seller with a "low-ball" bid is no way to open negotiations on a property you want to own.
9. Closing Fees
Keep a sharp eye on the fees you and the seller will pay at closing. When responding to counter-offers, remember that everything is negotiable—including closing fees.
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