THE HOME BUYING PROCESS
We know what makes your home sell: How it's priced, how it shows, and how it's marketed. Selling your property is a big decision, so it's important to work with agents you can trust to get the job done perfectly.
When you choose to work with us, you're not just getting agents who use the best tools and technology to sell your property for the most amount of money in the least amount of time. You're getting transparency and instant communication throughout the entire process, so you can relax knowing every detail is taken care of. We custom tailor property marketing strategies to target where buyers are looking - both online and in person. Plus, we make listings shine with the best photography and content.
THE HOME BUYING PROCESS
We know what makes your home sell: How it's priced, how it shows, and how it's marketed. Selling your property is a big decision, so it's important to work with agents you can trust to get the job done perfectly.
When you choose to work with us, you're not just getting agents who use the best tools and technology to sell your property for the most amount of money in the least amount of time. You're getting transparency and instant communication throughout the entire process, so you can relax knowing every detail is taken care of. We custom tailor property marketing strategies to target where buyers are looking - both online and in person. Plus, we make listings shine with the best photography and content.
PREPARING TO BUY
Plan to Buy a Home in an Area You Intend to Stay. Make sure you can commit to remaining in one place for at least a few years. When looking at areas of interest take into consideration your job and commute time, school district, distance from loved ones and any other factors that are important to
Check Your Credit. Since you are likely to need a mortgage to buy a house, make sure your credit history is as clean as possible. Ask for a copy of your credit report and correct any inaccuracies before you begin house hunting.
Calculate your Finances. Aim for a house you can afford. The rule of thumb is that you can pay for a house that is two-and-one-half times your annual salary. Getting pre-approved by a lender will ensure that you are looking at houses in the right price range.
Hire a Professional. You can use the internet to find real estate agents in your area. Also, it is best to ask for recommendations from people who have used agents when buying their home. Ask them what their experience was like and if they would use the same agent again. Interview several agents before determining the one you want to work with.
Do your Homework. When making an offer on a house, your opening bid should be based on the sales trend of other homes in the neighborhood. Use a Comparable Market Analysis of homes sold in the last three months. If homes are selling five percent below the asking price, then make your offer five to ten percent below the listing price.
PREPARING TO BUY
Plan to Buy a Home in an Area You Intend to Stay. Make sure you can commit to remaining in one place for at least a few years. When looking at areas of interest take into consideration your job and commute time, school district, distance from loved ones and any other factors that are important to
Check Your Credit. Since you are likely to need a mortgage to buy a house, make sure your credit history is as clean as possible. Ask for a copy of your credit report and correct any inaccuracies before you begin house hunting.
Calculate your Finances. Aim for a house you can afford. The rule of thumb is that you can pay for a house that is two-and-one-half times your annual salary. Getting pre-approved by a lender will ensure that you are looking at houses in the right price range.
Hire a Professional. You can use the internet to find real estate agents in your area. Also, it is best to ask for recommendations from people who have used agents when buying their home. Ask them what their experience was like and if they would use the same agent again. Interview several agents before determining the one you want to work with.
Do your Homework. When making an offer on a house, your opening bid should be based on the sales trend of other homes in the neighborhood. Use a Comparable Market Analysis of homes sold in the last three months. If homes are selling five percent below the asking price, then make your offer five to ten percent below the listing price.
1ST TIME HOME BUYERS
There are many instances when someone is purchasing a second home. Sometimes the real estate investor is purchasing a second home as an investment property but many times the homeowner is buying the second house as their new primary residence. When this is the case, it is important to figure out whether to buy the new property or sell the old real estate first.
Many times a change in careers or even a promotion will force someone to move in order to keep their job or improve their lot in life. If the person is already a homeowner, they will be forced to sell one home and will likely buy another piece of real estate in their new hometown.
If this is the case, most companies or corporations will provide some type of housing assistance. While it may not be enough to purchase a brand new home right away, it will at least make provisions for the homeowner to be able to survive until a new property can be located.
If the current real estate investor does have the financial capital to invest in a new home, it may be a wise choice simply due to the increased deductions and savings on taxes at the end of the year. Not everyone is going to be in a financial position where they are capable of maintaining all of the financial responsibilities of owning two households at the same time.
Listing the current home with a qualified realtor will often produce better results for the average person. By selling the current home, they are released from any mortgage payments or other financial obligations in respect to that house. They will also come out ahead financially if they have managed to build up any equity in the value of the home. This added boost to their discretionary disposable income is known as a capital gains income. There is usually a two-year period in which they can reinvest that money without being penalized on their taxes at the end of the year. That additional money can then be used to assist with the cost of living in a rental unit while the real estate investor seeks out a new ideal piece of real property where they can safely reinvest their capital gains.
Whether to buy a new home or sell the old home is going to depend on the financial portfolio of the individual real estate investor. As a general rule, if the financial means are available, then purchasing a new home first is often the best choice. Since that kind of financial freedom is not available to everyone, the reality of the situation is that for most real estate investors, it will be wise to find a good realtor and sell the old property before purchasing a new home.
COMMON BUYERS MISTAKES
Buying a home is stressful - especially if its your first time.
In fact, about 40% of first-time homebuyers said it was the most stressful event of their entire lives, according to a 2018 survey by Homes.com.
1. Not Saving Enough for a Down Payment
If you're getting a mortgage, one of the worst mistakes you can make is not putting down a large enough down payment. Hogan says any amount less than 10% is way too low. Although common culture says a 20% down payment is standard, the reality is most people don't put 20% down on a home. The down payment is the biggest hurdle to buying a home, and it takes more than seven years for an average homebuyer to save a 20% down payment on a typical-valued home, according to Luxury Properties research. The average first-time homebuyer puts 5% down on a house, according to the National Association of Realtors.
2. Not Getting Preapproved
Getting preapproved - not just prequalified - gives you a leg up on the home-buying process. A mortgage pre-approval letter not only tells a seller you're serious but also means the paperwork process will move faster if your offer is accepted. It also makes you a more educated buyer because it lets you know the amount of money you can borrow from a lender to buy a home. The lender uses your credit, income, assets, and debts to determine whether you qualify for a mortgage and for how much.
3. Purchasing by emotion.
I like an old farmhouse as well as anyone, for instance, but when a buyer falls in love with the original woodwork and fails to notice the original plumbing, furnace, roof, and newspaper insulation, he is asking for trouble (and expense!) down the road. This is where a Realtor from Pat O'Brien and Associates is helpful. We will help you consider the objective facts without our personal emotion in the property involved. Don't let love blind you to a property's shortcomings - we all want to avoid buyer's remorse!
4. Skipping the inspection.
Speaking of trouble down the road - do not skip the home inspection. Yes, it will cost some money - but it's money you can't afford NOT to spend. The majority of home buyers aren't qualified to test for or detect every potential or existing problem. You might even want to accompany the inspector to receive a full explanation of the issues to determine the severity of said issues. When you're writing an offer, make it contingent upon the inspection. When you make your offer contingent upon the inspection, it allows you to back out of your offer on the home if there's anything in the inspection that is unsatisfactory. Or, you can ask the seller to fix the issue before proceeding with the offer.
5. Not reviewing the contract carefully.
When you're ready to make an offer on a property, make sure you read the contract language and talk to your Realtor about anything you don't understand. You don't want a surprise at the closing table - and neither does your Realtor. You should know what your obligations are, and also what the sellers are to you
6. Waiting until the market changes.
Buying a home has long been part of the American dream. We want a home to raise our families and be able to build, decorate or landscape however we want. We want to build not just a house, but our futures, building equity and memories under our own roofs. No one can see into the future, so if you are financially and emotionally ready to buy a home, now is a perfect time. When you're ready to take the step towards purchasing your dream, reach out and contact us! I would love to be there for you every step of the way.
COMMON BUYERS MISTAKES
Buying a home is stressful - especially if its your first time.
In fact, about 40% of first-time homebuyers said it was the most stressful event of their entire lives, according to a 2018 survey by Homes.com.
1. Not Saving Enough for a Down Payment
If you're getting a mortgage, one of the worst mistakes you can make is not putting down a large enough down payment. Hogan says any amount less than 10% is way too low. Although common culture says a 20% down payment is standard, the reality is most people don't put 20% down on a home. The down payment is the biggest hurdle to buying a home, and it takes more than seven years for an average homebuyer to save a 20% down payment on a typical-valued home, according to Luxury Properties research. The average first-time homebuyer puts 5% down on a house, according to the National Association of Realtors.
2. Not Getting Preapproved
Getting preapproved - not just prequalified - gives you a leg up on the home-buying process. A mortgage pre-approval letter not only tells a seller you're serious but also means the paperwork process will move faster if your offer is accepted. It also makes you a more educated buyer because it lets you know the amount of money you can borrow from a lender to buy a home. The lender uses your credit, income, assets, and debts to determine whether you qualify for a mortgage and for how much.
3. Purchasing by emotion.
I like an old farmhouse as well as anyone, for instance, but when a buyer falls in love with the original woodwork and fails to notice the original plumbing, furnace, roof, and newspaper insulation, he is asking for trouble (and expense!) down the road. This is where a Realtor from Pat O'Brien and Associates is helpful. We will help you consider the objective facts without our personal emotion in the property involved. Don't let love blind you to a property's shortcomings - we all want to avoid buyer's remorse!
4. Skipping the inspection.
Speaking of trouble down the road - do not skip the home inspection. Yes, it will cost some money - but it's money you can't afford NOT to spend. The majority of home buyers aren't qualified to test for or detect every potential or existing problem. You might even want to accompany the inspector to receive a full explanation of the issues to determine the severity of said issues. When you're writing an offer, make it contingent upon the inspection. When you make your offer contingent upon the inspection, it allows you to back out of your offer on the home if there's anything in the inspection that is unsatisfactory. Or, you can ask the seller to fix the issue before proceeding with the offer.
5. Not reviewing the contract carefully.
When you're ready to make an offer on a property, make sure you read the contract language and talk to your Realtor about anything you don't understand. You don't want a surprise at the closing table - and neither does your Realtor. You should know what your obligations are, and also what the sellers are to you
6. Waiting until the market changes.
Buying a home has long been part of the American dream. We want a home to raise our families and be able to build, decorate or landscape however we want. We want to build not just a house, but our futures, building equity and memories under our own roofs. No one can see into the future, so if you are financially and emotionally ready to buy a home, now is a perfect time. When you're ready to take the step towards purchasing your dream, reach out and contact us! I would love to be there for you every step of the way.
Luxury Properties Tampa Team
Do you want to sell or buy property?
