Posts & Press

Five Best Practices for Buying a Home

If you want to land your dream home, you will have to follow some unwritten rules. These are some best practices that are followed by both sellers and brokers. Let’s take a look at them:

Make an offer only after getting a mortgage pre-approved

The pre-approval letter shows that the lender has verified your finances and believes that you are a qualified borrower. So, if you find the home of your dreams, you can go ahead and make an offer and the lender is unlikely to turn down your request for financing. Pre-approval letters specify your lending limits. They also convince the seller that you are a serious buyer. In fact, if the seller receives multiple offers, they are more likely to consider buyers with a pre-approved mortgage.

Hire a broker

If you are like most people, your home is the biggest purchase you will ever make. And that explains why you should have the expertise of a real estate broker on your side. Agents show homes, negotiate prices, and close deals almost every month. Thanks to their experience and understanding of the property market, they can easily identify potential problems.

In addition, they will help you find properties that match your needs. The National Association of Realtors estimates that almost 90% buyers hire an agent to help them find the best possible deals.

While it is true that the internet and property websites have made the process of buying and selling homes easier, it still makes sense for both buyers and sellers to hire a broker.

Make a deposit

While this is not a legal requirement, a buyer is supposed to deposit a certain amount of money while making an offer. This amount is known as earnest money. The earnest money is usually 1-2 percent of the total purchase price of the property.

Earnest money shows the seller that you are a serious buyer. Don’t forget to include contingencies in your sales contract. If the deal falls through, you should have no difficulty recovering your deposit.

Even if you have a pre-approved mortgage, the lender may refuse to finance the purchase if they detect problems during the inspection of the home or if they suspect that the estimated value of the home is too high.

Establish a personal connection with the seller

When the market is competitive, you will have to sell yourself. Make your offer personal by including a handwritten letter. Many sellers are emotionally attached to their home and naturally, they want to ensure that it is going into the right hands. Do whatever you can to convince the seller that you will take good care of the property once it becomes yours.

Tour the home in person

Don’t forget to tour the home in person. While tools like Google Glass facilitate virtual touring of the property, they can’t be compared to the experience of touring a home in person. So, take your time and tour the property with your family members.

 

Leave a Reply