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Being a Successful Real Estate Novice

Buying property for the first time is always thrilling – it’s one of those purchases that you’ll remember the rest of your life. When you’re a novice, the memory can be a great one or a terrible, depending entirely on how well you handle the purchase. To make sure you remember your first purchase as a successful one, do your homework and move carefully.

Before buying, think long and hard about why you’re buying – is it for your own use, or is it an investment that you intend to resell after doing some renovations? Be sure you know your motivation and how much you want to pay for the property itself. Remember, if you’re going to be doing repairs after the purchase, you have to budget some money in for that as well, so don’t overextend yourself on the property mortgage and then end up not being able to afford the work you need to do.

Find out what the lowest and highest priced properties are in the area you’re considering. Knowing the range can help you when negotiating on a price. Also look at several different properties that are similar and compare the similarities and differences. What extras are demanding premiums, which ones aren’t?

You should also go into negotiations and closings from a position of power. Learn what all of the terms mean that you will be hearing. Escrow, title, mortgage insurance, options and a host of other terms will come up. If you don’t clearly understand what the realtor or the lender is talking about, you are working at a distinct disadvantage. Knowledge is a powerful thing, and will give you the power to ask questions and make it clear that you understand what’s going on.

Learn the actual procedure for the closing so that you aren’t surprised by costs like inspections, escrow, realty and other fees. Be sure you familiarize yourself with any local laws or ordinances that may affect the property you’re purchasing as well.

When shopping for property, don’t simply go with a realtor. While a realtor can be very helpful, you can save a substantial amount if you by-pass this route because you won’t be paying the realty fees. Homes that list as “For Sale by Owner” are often being sold by homeowners who want to sell quickly or are willing to negotiate and have passed on the realtor in an effort to make some money despite having to lower the price of their property. Also check the Internet, newspapers and local Home Sales weeklies for listings.

Financing once you’ve settled on a property is also a minefield. Don’t go with the first mortgage you’re offered. There are so many different mortgage lenders now that you can afford to shop around. If you belong to a credit union, talk to the mortgage officer there. Also talk to banks and savings & loans. If you want to be sure you can purchase a property at the best price and beat other interested buyers to the punch, have your financing in place before you make your offer. Sellers will go with someone who’s financing is guaranteed over an unknown every time.

Finally, remember that buying and selling property takes compromise. When you make an offer on a property, you’re likely to get a counter-offer from the seller. Don’t dismiss it without offering a compromise. Can you offer a better price if they are willing to closer earlier? Whatever you can do to make the deal come together with both of you happy is best.

For more information about buying a home or investment property or foreclosures visit http://www.1st-real-estate.com


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For more information about buying a home or investment property or foreclosures visit http://www.1st-real-estate.com/




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