How to Gain a Homebuying Edge

Let’s face it – homebuyers constantly compete with one another, especially if a new home is added to the real estate market that fulfills the requests of a large assortment of homebuyers in a particular area.

Thus, you’ll want to do whatever you can to gain a competitive advantage over other homebuyers, as this competitive edge will enable you to discover the right home quickly and efficiently.

So what does it take to obtain a competitive advantage over your homebuying rivals? Here are three tips to help you gain a competitive edge over homebuyers in any real estate market:

1. Act Fast.

The early bird catches the worm, and the same holds true for homebuyers who want to find the best homes in a competitive real estate segment.

Homebuyers who act quickly are more likely to find great homes as soon as new residences hit the real estate market. Also, these homebuyers will be in an ideal position, one that enables them to check out a recently listed home quickly and make an offer without delay if a residence meets their needs.

Study the real estate market carefully, and you’ll be better equipped to make a move on a recently listed house faster than other homebuyers.

Also, be sure to get pre-approved for a mortgage, as this will enable you to submit an offer without having to worry about committing extensive time and resources to get approved for a mortgage down the line.

2. Offer More Than the Asking Price.

What can you do to ensure your offer stands out to a home seller? Offer more than the asking price for a residence, and you can improve your chances of securing your dream home.

In the event that a home seller receives multiple offers for his or her residence, offering more than the initial asking price will help your offer stand out from others.

Therefore, you’ll be able to reduce the risk that you could miss out on your ideal house if you submit an offer that exceeds a home seller’s asking price.

3. Work with an Experienced Real Estate Agent.

When it comes to finding your dream home, why should you be forced to leave anything to chance? Instead, hire an experienced real estate agent, and you’ll be able to enjoy a long-lasting competitive edge over other homebuyers.

Typically, a real estate agent will possess extensive industry know-how and experience, ensuring that he or she can help you find your perfect residence immediately. This professional also will be ready to respond to any concerns or queries and ensure you are fully supported during every step of the homebuying process.

From determining your ideal budget for a new home to setting up home showings, a real estate agent can make it easier for you to check out many wonderful residences in cities and towns nationwide. As a result, hiring a real estate agent could mean the difference between settling for an average house and discovering your dream residence in any real estate market.

Gain the competitive edge you need in any real estate market, and you should be able to make an offer on your dream home instantly.

The Time is Now to Buy a High-End Home

The news has been bombarded with negative stories about the real estate market over the past few years, but the tides are turning and inventory is now lower than ever. There are still many opportunities for buyers as prices still remain low. For savvy homebuyers looking to buy in the high-end or luxury marketplace there is tremendous opportunity.

If you’ve always dreamed about buying a luxury property but considered it just out of reach, today’s market may has put downward pressure on the prices of higher-end homes making them more affordable than ever. To buy your dream home you will want to have a strategy.

1. Choose your agent wisely.

Your agent is your advocate. You will need an agent who is experienced and successful in the luxury home market. Agents who deal in luxury property have the right knowledge to help you locate and negotiate an offer on a high-end home.

2. Take the time necessary.

The high-end home search may take more time and patience. The supply of luxury homes may be smaller, you may even need to expand your search or rely or your agent to find homes that may not be currently up for sale. The home will be bigger, have more features and thus there will be more to consider in the purchase decision.

3. Prepare the perfect offer.

Cash is king in today’s market. According to the May 2011 REALTORS® Confidence Index from the National Association of REALTORS®, 30 percent of all purchases between mid-April and mid-May of last year were financed with cash. The number was even higher for luxury properties.

Even though many luxury sellers may also be in a distressed property situation they are typically more particular about who was buying their property as well as the final selling price. Use your agent to carefully craft the perfect offer.

First Time Buyer Home Loan Tips


Buying your first home can be confusing. Securing a mortgage is one of the most important parts of the home buying process. Making sure that you have the right loan and have chosen the right loan officer are among the things a first time buyer has to do to start the process. Here are some more tips on how to ensure a successful purchase:

1. Make sure your deposit is in order. Talk to your loan officer about what amount of a deposit is required for the purchase and type of loan. You will also want to make sure the funds are accounted for and readily available. You can expect deposits to run anywhere between 3 and 20 percent of the purchase price.

2. Plan to have a cash reserve in addition to your deposit. You may want to have a reserve of at least two months mortgage payments.

3. Ask your lender to go over all the fees that apply to the purchase. It is better to be prepared and know how much the actual purchase will cost. These costs are typically added into your loan but there may be some out of pocket expenses too.

4. Consider how much you can comfortably afford not how much you have been approved for. These numbers may vary considerably. Your mortgage costs should not be more than 30% of your household income.

5. The lowest rate is not always the best deal. You will want to look at not only the rate but also the terms and fees associated with the loan.

 

 

 

Buyer Beware; Don’t Buy on Emotion

There is a saying often used in the real estate industry to refer to buyers, it says buyers are liars. That is in fact not case. The perception comes from the fact that buyers often buy on emotion rather than their needs. Buying on emotions often leaves buyers passing over a potential good deal or fit and instead overpaying for their dream home.

Here are some common buyer errors and how to avoid making them.

1: Not using the right agent

Choose an agent that works in the local market and never go it alone. An agent has the skills to negotiate the best deal for one of the biggest purchases of your life. A local agent has the lay of land and knows the area well and will be able to find you the right fit.

2: There usually isn’t a better deal

When buyers keep waiting for a better deal they often miss out. When you find a house that fits your needs go for it. Don’t wait because there is no guarantee that a better deal will come on the market.

3: Overpaying for cosmetics

Look at the structure and the function of the home. Paint colors or décor don’t matter in how much the house is ultimately worth. Often buyers will pay for cosmetics and staging in a home and ignore a better deal that isn’t perfectly decorated or match their taste.

4: Not negotiating realistically

Who doesn’t want to get the lowest possible price when buying a home? Buyers need to understand there is a big difference between negotiating and lowballing. If a buyer truly wants a chance at a sale it is best to make a fair offer. Lowball offers often immediately get rejected or cause the seller to become agitated which often ends negotiations. Buyers must understand a lowball offer comes with a risk of losing the property.

Buy a Home and Watch Your Money Grow

Before you decide to buy a house, it is crucial that you consider various factors beforehand. Some of these factors can be as straightforward as making sure to choose a home in a good area, and making certain that the property is also in good condition. However, it is also important to consider the housing market, because it is imperative that you buy a house at the right time. For example, if you are in a market where there is a huge demand for homes for sale, then the prices of houses will generally be high, and so if you are buying a house for investment purposes, this wouldn’t be the right time for you to make that purchase. With the market starting to creep back up buyers will be looking to get a good deal before demand goes back up so selling a home right now can bring great results.

On the other hand, if there is less demand for buying houses, then the price of property will generally be very low, thus making it the perfect time to buy. Right now is a fantastic time to buy a home with the slower market interest rates at the lowest in years. Buying a home in a down market can become a great investment down the road. You can consider it like a savings account. Buy the property in a down market, and watch your money grow.