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Ready to Buy or Sell

The decision to purchase or sell a home are two of the biggest investment choices you could ever make.  After all, a home is usually the largest – and most emotional – investment most people will face in their lifetime.  So, how do you know if it’s the right time for you to buy or sell?

There is never a wrong time to buy or sell the right home.  The key is carefully evaluating your finances to reach the right decision.  As trained financial advisors, we work with Realtors around the world to ensure you are prepared to move forward, or from, a home.

Let us help you explore your options today.  You don’t have to know everything as we are ready to help you through every step of the real estate process.

Buying House

Buying A House Can Be Easy When You Prepare For It

Are you interested in buying a house? If yes, then you’re are at the best place for insights into the whole process. Buying a house, once considered can become a very emotional activity. You might find yourself stalking listed homes on your home-browsing app or allowing your schedule to accommodate drive-by viewings.

It is very easy to purchase a house you cannot afford and that mistake can seriously impair your ability to accumulate wealth down the line. Understanding the right way to buy a home helps you avoid grievous financial mistakes.

When to purchase

Before anything else, you have to consider timing. Evaluate your finances and make sure you have a steady income and enough cash saved for the down payment. You also have to consider the housing market because you want a home that will go up in value. Discuss the market with your real estate agent. Consider your life stage. The process of buying a house is expensive and you should not invest that much into an activity when you may move the next year.

Save up

Don’t restrict your financial growth by making decisions with a short-sighted perspective. A weak financial foundation is key to regretting your home purchase. You have to be financially ready to buy a house and this means paying off debts and saving up three to six months of expenses. When you become the home owner, you will be in charge of paying for repairs. Saving for the down payment is one of the most difficult aspects. You may consider saving up as much as 20 percent of the home value for a down payment to avoid Private Mortgage Insurance (PMI).  Moving expenses should also be taken into consideration as part of your total savings for a home purchase.

Get preapproved

The optimal way to get a house is with cash. It may sound far out but people do it. If it is not feasible for you, you’ll require a home mortgage loan. To get prequalified to buy a house, a lender will find out about your income, assets and down payment. Getting preapproved is more of a challenge. The lender will confirm your financial information and submit your application for preliminary underwriting. When you begin your home search, a preapproval letter shows you are a serious buyer. Mortgage options varies so decide on the best one for your financial status.

Find the right agent

You can do a lot on your own but getting assistance from an expert will go a long way in finding and securing the perfect place. A buyer’s agent can even help you find a house before it is listed for sale. The agent will also do the job of negotiating offers for you. In most cases, the seller even pays your agent’s fees.

House hunting

Before starting your search, make a list of features of a home that are vital to you and don’t compromise on them to avoid regret. Once you have clarity on what you want, share it with your agent. Your agent will help set realistic expectations and streamline your search to areas you can afford.  One thing to keep in mind is that a great house in a bad neighborhood may not be a good idea.  Your home may be your biggest investment so select a home that should grow in value.

Article by Vital Guidance

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How To Win The Home Bidding War Without Breaking The Bank

Real estate bidding wars are less common than they used to be, but they can still happen. This is especially true in markets homebuyers are desperate to move into, with a bidding war driving up the price of the property much higher than was expected when the first bids were made.

The most effective way to close a deal in your favor when it comes to real estate is by making an all-cash offer. This makes sense, if you can afford it, because it’s a much cleaner process with far fewer hoops to jump through for both the buyer and seller, and it was shown in a study by Redfin that paying all-cash more than triples your chances of being successful. If your battle is starting to look competitive, see if this is an offer you are able to make to seal your new home.

Interestingly, the second most successful strategy as checked by Redfin is a much more personal one that has nothing to do with money changing hands at all. That strategy is to simply write a personal letter to the seller. This is far less effective than the no financing deal, but people in this day and age don’t often feel a connection between buyer and seller. If someone has lived in a house for 20 years or so, they want to know that the person buying the property has some level of respect for it. That is why a well written and well thought out letter can – in some circumstances – tip the scales in your favor when it comes to a real estate purchase. Showing that you care about a house and the person selling it can be a huge deal closer, especially with older home sellers.

The other three metrics tracked by Redfin were all less effective. Waiving a financial contingency – basically protecting the buyer from liability in the event of a sale falling through after a failure to secure a loan – had some traction, but it was a much more effective bidding war strategy a few years ago. This strategy, however, was more effective than both waiving the inspection contingency and conducting a pre-inspection of the property, neither of which had any impact at all on bidding wars won.

What this tells us is that cash is still king and that the personal touch of a letter still holds merit in the world today. It is fascinating that something as simple as a personal note from buyer to seller can still help with real estate buying. Perhaps that is an example we should take into all aspects of our everyday life.

Article by Vital Guidance