Rules about Buying Real Estate

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  • Never be in a hurry to buy. Buying is much easier than selling. Do not put yourself (or allow yourself to be put) under pressure. Stay cool. Don’t get ex cited. Make sure you have enough information to make an informed decision.
  • Choose homes and upgrades that have wide appeal as opposed to those that are bizarre or unusual.
  •  Buying a house is a process of elimination. Your initial “wish list” should have “must have” (needs) and “want to have” (w ants). Begin your home search with an open mind. Compromise on the little things (the wants) to get the big things (the needs). As you look at houses you adjust your priorities along the way.
  • The average person has to see about 16 houses (with a Realtor) before they are confident and knowledgeable enough to put in an offer. Some people see 5 and some people see 50. You don’t have to see everything on the market (unless you want to).
  • Systematically check out the house room by room. Look at the roof, windows, walls, ceilings, electrical outlets, floors, doors, baseboards, cupboards, furnace, water softener, bathtub, faucets…everything.
  • Don’t buy a problem house. If the house is proving difficult for the present owners to sell, it will be difficult for you to sell too. Some people don’t like living on a busy street. Some people don’t like corner plots. These things might not bother you, but one day you will have to sell.
  • It’s important to find a Realtor early in the process. You don’t really want to be dealing with the Realtor who is selling the place you want to buy. Multiple representation should be avoided whenever possible. The sooner you find a Realtor you want to work with, the easier and more enjoyable the home buying process will become.
  •  The roof, the windows and the furnace are the BIG-ticket items. These three make up the most expensive single items to replace. Make sure they are not too old or that the house is priced accordingly.
  • You’re not going to get rich quick. You’re likely not going to be able to flip your house in nine months for a big profit. I love watching the house flipping shows on TV. They are drama. They are fiction. They are over in half an hour.
  • Do not post on your Facebook page how much you love a house. The sellers might find out and you can end up paying a higher price.
  • If you’re waiting for prices to go lower, don’t wait. Real estate isn’t like the stock market. It’s more predictable. Although prices do fluctuate, if you’re waiting for house prices to drop by 10%, in most markets that just isn’t going to happen.
  • The home you buy does not have to be decorated to your taste (or fit your furniture). You’re better off buying a house that needs a little decorating. Buy a house to fit your lifestyle and your family’s needs. You can always decorate to your taste and buy new furniture.
  • The social and psychological power of a house is huge. Don’t be taken in by houses that have been staged or have all the modern things that you just have to have. If the house is perfect and move in ready, you’re going to be paying extra for that convenience.
  • Allow yourself at least two months to find a house. It may take longer. It may take less time. Depending on how much time you dedicate to your search and what’s on the market, it can take two to four months of solid effort to find the right house. A 60-90 day closing date is common. If you want to move in July, starting in  February will all but guarantee success.
  •  Don’t see too many houses in one day. If you are going out with your Realtor for your first time, you might want to see six or seven homes. After that, seeing two or three is enough for one day.
  • Search within your price range. There’s no sense looking for homes in the 400million range if you know you can only afford homes in the 300million range.
  •  If you would like to have your parent’s advice and approval, get them involved early in the sale, not after the contracts are signed, sealed and delivered.
  • Be prepared to take advantage of a great deal when it appears. Some homeowners, for various reasons, are in a hurry to sell or perhaps have priced their home too low by mistake or some other reason. Sometimes banks sell properties. Houses sell for less than their value all the time.
  •  Understand value. Look at the purchase price, look for sales of similar properties, find comparables and gather information. If you know what the true value is, you can easily spot the good houses when they appear.
  • Look for clues to the seller’s motivation in order to judge his bargaining strength.
  • Think about the future. You should think about what your personal and family situation will be like (5 years) in the future and buy a home that suits those needs.
  • Think about your exit strategy. Most people will not live in their first house for their entire lives. In fact many first-time homebuyers will move within five to seven years. Consider that when you buy a house and when you make improvements. Also think about how difficult the house will be to resell.
  • Work with a Realtor. Your Realtor does not sell you real estate. Your Realtor doesn’t sign you up and set you loose either. Your Realtor educates you about the market, analyzes your wants and needs, guides you to homes that fit your criteria, coordinates the work of other needed professionals, negotiates on your behalf, checks and double checks the paperwork and deadlines and solves any problems that arise.
  • Make sure your Realtor isn’t just showing you houses from his own brokerage. Avoid dual agency situations wherever possible. The brokerage owns the listings not the agent. This means that if you are dealing with two agents at the same brokerage your Realtors are on the same team.
  • Listen for vague language. What you want to hear is specifics. If the seller says it’s a “newer” furnace, find out what “newer” means. You might think it means two or three years old. The seller may think “newer” means seven or eight years old. This goes for real estate advertising as well.
  • Find out what’s really happening in the market. Ask your Realtor about the your local real estate market. Find out the “average days on market” and the “absorption rate”. Find out about what price ranges, neighbourhoods and styles of houses are moving well and which, if any, are not. Real estate boards and associations love statistics and most agents are always watching the stats trying to figure out the trends and where the market is going.
  • Choose upgrades that are functional and useful as opposed to ones that are only decorative. Functional upgrades would include a gas fireplace, better cabinets in the kitchen, a gas stove, and hardwood flooring.

More articles you can read, click on it to read
Understanding the basics before buying a Real Estate property

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