Gladwin Real Estate Information
5 Ground Rules for Home Buying Success by Andrew Lo
There are few purchases in life that carry the financial and psychological weight of buying a home. Whether you
are buying your first home, moving up to your dream home, or downsizing your home and your life after the kids
have gone, it is important to understand the ground rules for success in the world of buying a home.
Making the wrong decision in buying a home can have devastating and long lasting effects, while making a wise
decision in home buying can greatly enhance the overall value of the investment. It is necessary to learn all you
can about the world of home buying and mortgages before setting out to purchase the home of your dreams.
While there are plenty of web sites designed to help first time homeowners learn all they can, most financial
experts say that there is no substitute for the good old one-on-one learning. Fortunately, most mortgage
lenders, home inspectors and real estate agents will be able to provide this kind of one-on-one learning.
When buying a home it is often best to use a systematic approach as this is often the best way to be sure that
all decisions are based on information and reason, not on impulse or emotion. Buying a home can be an
emotional process, nevertheless it is imperative to keep your emotions under control and not let them cloud
your judgment.
There are five basic ground rules when it comes to buying a home and shopping smart, and they are:
#1 - Get your financing before you get your home
There are few things in life as disappointing as losing out on the home of your dreams due to not being able to
secure funding. While the desire to get out there are search for that great home is understandable, it is vital to
line up the financing you will need before you start shopping for a home.
Getting the financing ahead of time has a number of important advantages, including knowing how much you
can buy and gaining more respect from the listing agents. By knowing how much home you can afford before
you shop you will avoid wasting your time looking at unaffordable properties, and the listing agent will be more
than willing to show you the homes in your price range.
It is also important to take a good look at the various types of mortgage on the market before getting started in
the home buying process. These days, mortgages come in far more choices than the typical 15 or 30 year. For
that reason, potential home buyers need to understand how each type of mortgage works, and to gauge which
mortgage is the best choice for their needs.
#2 - Look at the community, not just the home
It is a good idea to look at the entire community, instead of focusing on a single home. This can be a particularly
important thing to consider for those moving to a new metropolitan area, as these buyers will be unfamiliar with
the local climate and lifestyle. It is crucial to determine the areas of town that are most desirable, and to
consider things like distance from work and local shopping opportunities.
We have all heard that location is the key consideration when it comes to real estate, and that is certainly the
case. Buying a house in the wrong area can be a big mistake, and it is important to choose the location as well
as the home. Potential buyers can learn a great deal about the nature of the various neighborhoods simply by
driving around town, as well as by talking to other residents.
#3 - Be fair with your first offer
Trying to lowball a seller on the first offer can backfire, as can paying too much. It is important to carefully
evaluate the local market, and to compare the asking price of the home with what similar houses in the
neighborhood have sold for.
Comparing the sales of comparable homes, what are known as "comps" in the industry, is one of the best ways
to determine what is fair, and to make sure that you neither overpay or underbid on the property.
#4 - Always get a home inspection
Always investigate the home for any possible defects before making an offer. Compared to the cost of the
average home, the price of a quality home inspection is virtually negligible. Hence, get a good home inspection
done before you buy.
To find the best home inspector, it is a good idea to seek out word of mouth referrals as many of the best home
inspectors rely on word of mouth advertising.
#5 - Do not alienate the sellers of the home
Many real estate deals have fallen apart due to the personal animosity of the buyer and the seller. It is important
to avoid alienating the seller of the home during the process, and to avoid nitpicking every little detail during the
sale.
Keeping the good will of the seller will help the transaction go smoothly, and it will provide the best environment
for seller and buyer alike.
About the Author
Andrew owns a website that provides tips on buying a new house and more. You can visit his website at:
http://www.buy-and-sell-house-fast.com/
b-14
There are few purchases in life that carry the financial and psychological weight of buying a home. Whether you
are buying your first home, moving up to your dream home, or downsizing your home and your life after the kids
have gone, it is important to understand the ground rules for success in the world of buying a home.
Making the wrong decision in buying a home can have devastating and long lasting effects, while making a wise
decision in home buying can greatly enhance the overall value of the investment. It is necessary to learn all you
can about the world of home buying and mortgages before setting out to purchase the home of your dreams.
While there are plenty of web sites designed to help first time homeowners learn all they can, most financial
experts say that there is no substitute for the good old one-on-one learning. Fortunately, most mortgage
lenders, home inspectors and real estate agents will be able to provide this kind of one-on-one learning.
When buying a home it is often best to use a systematic approach as this is often the best way to be sure that
all decisions are based on information and reason, not on impulse or emotion. Buying a home can be an
emotional process, nevertheless it is imperative to keep your emotions under control and not let them cloud
your judgment.
There are five basic ground rules when it comes to buying a home and shopping smart, and they are:
#1 - Get your financing before you get your home
There are few things in life as disappointing as losing out on the home of your dreams due to not being able to
secure funding. While the desire to get out there are search for that great home is understandable, it is vital to
line up the financing you will need before you start shopping for a home.
Getting the financing ahead of time has a number of important advantages, including knowing how much you
can buy and gaining more respect from the listing agents. By knowing how much home you can afford before
you shop you will avoid wasting your time looking at unaffordable properties, and the listing agent will be more
than willing to show you the homes in your price range.
It is also important to take a good look at the various types of mortgage on the market before getting started in
the home buying process. These days, mortgages come in far more choices than the typical 15 or 30 year. For
that reason, potential home buyers need to understand how each type of mortgage works, and to gauge which
mortgage is the best choice for their needs.
#2 - Look at the community, not just the home
It is a good idea to look at the entire community, instead of focusing on a single home. This can be a particularly
important thing to consider for those moving to a new metropolitan area, as these buyers will be unfamiliar with
the local climate and lifestyle. It is crucial to determine the areas of town that are most desirable, and to
consider things like distance from work and local shopping opportunities.
We have all heard that location is the key consideration when it comes to real estate, and that is certainly the
case. Buying a house in the wrong area can be a big mistake, and it is important to choose the location as well
as the home. Potential buyers can learn a great deal about the nature of the various neighborhoods simply by
driving around town, as well as by talking to other residents.
#3 - Be fair with your first offer
Trying to lowball a seller on the first offer can backfire, as can paying too much. It is important to carefully
evaluate the local market, and to compare the asking price of the home with what similar houses in the
neighborhood have sold for.
Comparing the sales of comparable homes, what are known as "comps" in the industry, is one of the best ways
to determine what is fair, and to make sure that you neither overpay or underbid on the property.
#4 - Always get a home inspection
Always investigate the home for any possible defects before making an offer. Compared to the cost of the
average home, the price of a quality home inspection is virtually negligible. Hence, get a good home inspection
done before you buy.
To find the best home inspector, it is a good idea to seek out word of mouth referrals as many of the best home
inspectors rely on word of mouth advertising.
#5 - Do not alienate the sellers of the home
Many real estate deals have fallen apart due to the personal animosity of the buyer and the seller. It is important
to avoid alienating the seller of the home during the process, and to avoid nitpicking every little detail during the
sale.
Keeping the good will of the seller will help the transaction go smoothly, and it will provide the best environment
for seller and buyer alike.
About the Author
Andrew owns a website that provides tips on buying a new house and more. You can visit his website at:
http://www.buy-and-sell-house-fast.com/
b-14