Purchasing a new piece of property can be easy as you make it. Knowing what questions to ask is the first step to make your homeowner’s dreams come true!
You’ll want to familiarize yourself with the process and terminology. Which might just mean spending your Saturdays researching unfamiliar phrases like what is escrow and what does “exclusive right to sell” mean?
Do you need a Realtor as a buyer?
While it is certainly possible to buy a home without a realtor, you must tread very carefully. Realtors bring many different positive aspects to the home buying process.
First of all, realtors have experience and skill when it comes to purchasing houses. They also know the market, what is currently available, and may even have an idea of things that are not yet on the market.
Realtors have access to all the relevant resources relating to housing. Anything you attempt yourself will no doubt take much more effort on your part. Paperwork, negotiations, market knowledge, and appropriate connections are things the realtors spend their entire career becoming experts.
Don’t Be Scared of Commissions
In most instances, the realtors make their money from the seller and not the buyer. In many cases, the agreements between seller and realtor contain an “exclusive right to sell” in the contract. The realtor is guaranteed to make a certain pre-negotiated fee.
You could sell the house yourself while your realtor is in the hospital in a coma, and the exclusive right to sell would make sure they still get their fee. Agents usually go up to around six percent of the home’s price. And all agents prefer this method of compensation.
Investment Property or New Home Material?
What do you want out of your property? Are you buying property as an investment, or are you looking for a long-term home for your family? Many people prefer purchasing a “starter home” and upgrading five or even ten years down the line.
Cash Sell or Mortgage?
How will you pay? Unfortunately, most people are not able to pay cold hard cash for their homes upfront. Financing is the most common way people can afford the large purchase prices of homes. Banks and other reputable lenders have spent many years making this a very streamlined process.
Having your financing sorted out before approaching a potential seller is a great way to show you are serious. Many deals have fallen through, and underprepared buyers have wasted much time.
What is the Seller’s Motivation?
Learning about the property owner and why they want to sell means that you can appeal to their heart and possibly be able to negotiate a lower sell price because you love the property, and maybe it is right beside where your grandmother grew up.
Whatever the case getting to know the seller also means they will be upfront about any little nuances in the house and its repair history.
What Type of Realtor is your Realtor
Understanding the real estate agent’s motivations means you will be able to learn a little about how the selling process is going to go. Is your realtor passionate about what they do and a little disorganized? Are they to the point and dotting i’s and crossing t’s. Learning a bit more about your realtor and their work history will help you be able to navigate your purchase properly and feel supported in this huge step towards your future!
In conclusion, there is a lot that goes into the purchasing of a home. Just remember that the more information and communication you have, the easier it will be to realize your dream of becoming a homeowner!
