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Being a Successful Real Estate Novice

Buying property for the first time is always thrilling Ė itís one of those purchases that youíll remember the rest of your life. When youíre 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 youíre buying Ė 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 youíre going to be doing repairs after the purchase, you have to budget some money in for that as well, so donít 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 youíre 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 arenít?

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 donít 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 whatís going on.

Learn the actual procedure for the closing so that you arenít 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 youíre purchasing as well.

When shopping for property, donít 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 wonít be paying the realty fees. Homes that list as ďFor Sale by OwnerĒ 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 youíve settled on a property is also a minefield. Donít go with the first mortgage youíre 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 whoís 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, youíre likely to get a counter-offer from the seller. Donít 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


About the Author:

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




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