What is the first step to buying a home? Back to Top
Make sure you are ready - psychologically and financially. Ask yourself the following questions: Do I have steady income? Is my debt lower than my total income? Do I have enough money to pay for the down payment and closing costs? Am I working hard enough to improve bad credit? A house needs constant care and attention. Also ask yourself if your budget will allow for unexpected repairs and upkeep. Once you can honestly answer "yes" to these questions, you are several steps ahead of the game and that much closer to becoming a homeowner.
What are some home buying negotiating tips? Back to Top
One of the most frequently asked questions about buying a home is related to negotiating a fair price. Buyers -- especially first-time home buyers -- want home buying tips, particularly about negotiating.
While some people feel uncomfortable bargaining even at a garage sale or farmer's market, in real estate, negotiating is part of the home buying process. Here are proven tips for becoming a successful negotiator when it comes to buying a home:
Home Buying Tip #1: Know your seller's motivation. A seller who needs to move quickly because of a job transfer, divorce, or contract on another home is more likely to accept a lower price. In this case, the seller is motivated by closing the sale quickly.
Home Buying Tip #2: The "listing" or "asking" price is what the seller ideally would like to receive. However, it's not necessarily what he or she will settle for.
Home Buying Tip #3: Before you make an offer, know the market value of the home. Your CENTURY 21 agent can help you determine this by checking recent sales and listing prices of comparable homes in the neighborhood where you're looking.
Home Buying Tip #4: Be flexible. Never say, "Take it or leave it." An attitude like this can ruin the potential for making a deal.
Home Buying Tip #5: Each time you increase your offer price, ask for something in return such as repairs, appliances, even lawn furniture or the riding lawn mower.
Home Buying Tip #6: Take a tip from poker players and never show your hand -- or reveal your next step.
Home Buying Tip #7: If you plan to pay cash or have a tentative commitment for a mortgage loan, use your strong financial position as a bargaining tool.
Home Buying Tip #8: Don't let your emotions (or those of your spouse) get in the way of negotiating the best deal. Leave your pride, fear, anger, and emotional attachments at home.
What contingencies should be put in a home buying offer?
Back to TopWhen you look to purchase a home, anticipate potential problems. But protect against them so that if something does go wrong, you can cancel the contract without penalty. This is what contingencies allow you to do. They should be included in any offer you present to buy a home.
Most offers include two standard contingencies: a financing contingency, which makes the sale dependent on your ability to obtain a loan commitment from a lender, and an inspection contingency, which allows you to have a professional inspect the property.
Without contingencies, a buyer could forfeit his deposit under certain circumstances if he backs out of a deal.
The purchase contract also should include the seller's responsibilities, such as passing clear title, maintaining the property in its present condition until closing, and making any agreed-upon repairs.
Is it possible to buy a home below market price? Back to Top
Certainly, but do not hold your breath. It takes a lot of determination and time to find a real bargain. But if you are adamant, here are some likely targets to pursue: foreclosed property, a fixer-upper, hard-to-sell new homes in a housing development and tenant-in-common partnerships.
With the latter, you may be able to buy a partial interest in this form of title to property owned by two or more individuals because the partners often sell at a discount. However, bargains are easier to come by in a soft real estate market, when the economy is in a recession, and when homeowners, and builders and sponsors of condominium conversions, are desperate to move unsold units.
Can buying a house help save money for my child's college education? Back to Top
Century 21 Real Estate LLC is one of the first companies to integrate the Upromise service into its consumer offers. By working with a particpating CENTURY 21 office to purchase a home, you can contribute up to $3,000 into a Upromise college savings account.