What is the first
step to buying a home?
Finding out what
you can afford is one of the fist steps, which can be done by pre-qualifying
for a home loan. This step will help you narrow your search for both a
neighborhood and particular houses. A pre-qualification is a simple calculation
that considers several factors, but primarily your income. There are no
guarantees with a prequalificaiton, but it will be expected of you when you
make an offer on a home.
What repairs
should the seller make?
If you want to get
top dollar for your property, you probably need to make all minor repairs and
selected major repairs before going on the market. Nearly all purchase
contracts include an inspection clause, a buyer contingency that allows a buyer
to back out if numerous defects are found or negotiate their repair.
The trick is not
to overspend on pre-sale repairs, especially if there are few houses on the
market but many buyers willing to buy at almost any price. On the other hand,
making such repairs may be the only way to sell your house in a down market.
Is there a secret
to good negotiating?
There are several
cardinal rules to negotiating effectively. One is do your homework, and learn
as much about the seller or the buyer as you can. Another is to play your cards
close to your vest and not reveal too much information to the other party or
their agent. Don't let yourself get rushed into any decision, no matter how
tempting it may be. Finally, if you have doubts about your negotiating skill,
hire someone to help.
What are some tips
on negotiation?
The more you know
about a seller's motivation, the stronger a negotiating position you are in.
For example, seller who must move quickly due to a job transfer may be amenable
to a lower price with a speedy escrow. Other so-called "motivated
sellers" include people going through a divorce or who have already
purchased another home.
Remember, that the
listing price is what the seller would like to receive but is not necessarily
what they will settle for. Before making an offer, check the recent sales
prices of comparable homes in the neighborhood to see how the seller's asking
price stacks up.
Some experts
discourage making deliberate low-ball offers. While such an offer can be
presented, it can also sour the sale and discourage the seller from negotiating
at all.
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