Our Real Estate Blog
A home showing may prove to be a life-changing event, and for good reason. If a homebuyer attends a showing and likes what he or she sees, it may be only a matter of time before this individual submits an offer to acquire a residence. As such, it is important to prepare for a home showing to ensure a buyer can fully evaluate a house and determine whether it is the ideal choice.
Ultimately, there are many reasons why homebuyers should put together a list of questions prior to a home showing, and these reasons include:
1. You can attend a home showing with a strategy in place.
A home listing usually includes information about a house's age and condition. However, few homebuyers are willing to submit an offer on a house based on a listing alone. But if you use a home listing to prepare questions before a showing, you can attend a showing with a plan in place to pursue your dream residence.
Oftentimes, it helps to prepare a list of general questions about a home. You then can review this list in conjunction with a home listing and determine which questions are answered in the listing itself. If you find assorted questions are still unanswered in the listing, you should not hesitate to find answers to these questions when you attend a showing.
2. You can gain deep insights into a house's condition.
Preparing a list of questions prior to a home showing may enable you to gain the insights that you need to make the best-possible decision about a house. And in most instances, you can never prepare too many questions to ensure that you can make an informed decision about a house.
Remember, buying a house is a major decision. If you put together a list of questions before a home showing, you can help take the guesswork out of deciding whether to submit an offer on a home.
3. You may be able to speed up the homebuying process.
The homebuying cycle may prove to be long and complicated, particularly for a homebuyer who is uncertain about how to proceed. With a list of questions in hand, you can attend a home showing and gain expert insights right away. Meanwhile, these insights can help you decide whether a house is right for you.
As you get ready for a home showing, you may want to consult with a real estate agent as well. A real estate agent is happy to help you craft a list of questions prior to a home showing. Also, this housing market professional can keep you up to date about houses that match your homebuying criteria, help you submit offers on homes and much more.
When it comes to home showings, it helps to plan ahead as much as possible. If you prepare a list of questions prior to your next showing, you should have no trouble evaluating a house.
The process of buying a home is anything but cut and dry. There will undoubtedly be some twists and turns along the way. First, you need to be pre-approved for a mortgage. Then, you’ll need to find a home that fits both your needs and your budget. Finally, you’ll put in an offer on a place and hope for the best throughout the rest of the process.
There are plenty of things that you can do as a buyer to make buying a home both easier and more streamlined. Below, you’ll find some of the best tips that are specifically for those seeking to buy a home.
Give Them An Offer They Can’t Refuse
When there is a low quantity of homes and a high number of buyers, competition can get fierce. When the market is like this, you’re not guaranteed to get a property that you put an offer on. It may take making several offers on homes in order for you to finally get the keys to your dream house.
You never want your offer to be too low. A low offer could be insulting to sellers and instead of being countered, could just be outright refused. Make an offer too high and you still have a problem. A high offer may be accepted, however, it’s not going to be approved by your mortgage company for you to borrow that much for the purchase. If an offer is accepted and a home appraises for less, you may be left with thousands of dollars that you need to pay on the spot in order to secure the home.
The best way to present an attractive offer is to work with an expert realtor who can do the appropriate research and let you know what a good offer on the home would be.
Know Your Contingencies
After an offer on a home has been accepted, you need to get to work on the contingencies that you’re going to want on the home. Your realtor will also be a huge advocate in this area. Contingencies will include things like the right to do a home inspection, the appraisal contingency, and the contingency that you’ll only be able to move forward with buying the home if you have appropriate financing. These protect you as a buyer so that if something falls through, you’ll be able to back out of the deal without a penalty.
Don’t Go Credit Happy
Once your offer is accepted and your financing is in place, don’t head out to buy tons of new furniture and appliances for your new home. Your credit matters until you get the keys to the house. Opening new credit cards or adding significant debt can affect your credit score negatively, possibly putting a damper on your home purchase. Hold off on making purchases until after you move into the house.
You know that you want to buy a house, but you also don't want to break your day-to-day budget to acquire a residence. As such, you're in the market for inexpensive housing – something that can be tough to find in any real estate sector, at any time.
Buying a house can be difficult, especially if you're operating on a tight budget. Fortunately, we're here to help you take the guesswork out of finding an inexpensive house that matches or exceeds your expectations.
Let's take a look at three tips to help you streamline your search for an affordable residence.
1. Evaluate How Long a Home Has Been Available
When it comes to finding an affordable house, it pays to check out how long a residence has been available. By doing so, you may be able to discover a bargain, even in a highly competitive real estate market.
If a home that has been available for many weeks or months, a seller may be more motivated than ever before to accept an offer that falls below his or her initial expectations. Thus, if you submit an offer below a seller's initial asking price, the seller may accept your proposal in the hopes of getting rid of his or her residence quickly.
Of course, you should always ensure that a home offer is competitive based on a house's age and condition, along with the current state of the real estate market. Because if you submit a "lowball" proposal, a seller likely will respond with an immediate "No" to your offer.
2. Look at Fixer-Uppers
A fixer-upper is unlikely to have everything that you want in your dream house. On the other hand, a fixer-upper likely is more cost-effective in comparison to a new house.
If you're on the lookout for affordable housing, you should consider fixer-uppers. These houses may require some work, but buyers who are willing to allocate the necessary time and resources to perform myriad home repairs can transform these properties into dream homes.
3. Collaborate with a Real Estate Agent
For homebuyers who want to acquire a house without spending too much, it usually helps to hire a real estate agent. In fact, by working with a real estate agent, a homebuyer can streamline the process of acquiring an affordable residence.
A real estate agent first will meet with a homebuyer and learn about his or her homebuying goals. Then, this housing market professional can tailor a home search to complement a buyer's budget.
Let's not forget about the support that a real estate agent provides throughout the homebuying journey, either. A real estate agent will set up home showings, negotiate with a seller's agent on your behalf and do whatever it takes to help you purchase an inexpensive house.
Ready to find a cost-effective house? Use the aforementioned tips, and you can accelerate the process of discovering an affordable home that you can enjoy for years to come.
You can ask any homeowner-buying and owning a home is expensive. Mortgage payments, property taxes, utilities, and other bills quickly add up.
If you want to buy a home but don’t have a large down payment saved, odds are you’ve discovered something called private mortgage insurance (PMI).
PMI is an extra monthly payment that you make (on top of your mortgage payment) when you don’t have enough to make a large (20%) down payment on your home.
However, if you want to buy a home and don’t want to tack on an extra monthly payment for PMI, you have options. In today’s post, I’m going to talk about some ways to avoid paying PMI on your mortgage so you can save more money in the long run.
Before we talk about getting rid of PMI, let’s spend a minute on what to expect when you do have to pay it.
PMI typically costs 0.30% to %1.15% of your total loan balance annually. That means that your PMI payments will decrease a moderate amount as you pay off your loan.
Furthermore, once you have paid off 22% of your loan, your PMI will be cancelled and you’ll only be responsible for your regular monthly mortgage payments.
Getting PMI waived early
With conventional loans, you can request to have your PMI cancelled once you’ve paid off 20% of the mortgage. However, many buyers with PMI are using some form of first-time buyer loan, such as an FHA loan.
With an FHA loan, you’ll be stuck with PMI for the lifetime of the loan if you don’t make a down payment of 10% or more. That’s a lot of PMI payments, especially if you take out a 30 year loan, and it can quickly add up.
If you have an FHA loan with FHA insurance, the only way to cancel the insurance is to refinance into a non-FHA insured loan. And remember--refinancing has its own costs and complications.
Making it to the 20% repayment mark
On conventional loans, the best way to get rid of PMI is to reach your 20% repayment mark as soon as possible. That could mean aggressively paying off your mortgage until you reach that point.
This can be achieved by making extra payments, or just paying more each month. However, you don’t want to neglect other debt that could be accruing costly interest in favor of paying off your loans. Make sure you do the math and find out which debt will be more expensive before neglecting other debt.
Once you do reach the 20% repayment mark, you’ll have to remember to apply to have your PMI canceled with your lender. Otherwise, it will be canceled automatically at 22%.
A home showing represents a valuable opportunity for a property buyer. However, there may be instances in which a buyer is unsure about whether to attend a house showing. Lucky for you, we're here to help you weigh the pros and cons of scheduling a home showing.
Now, let's take a look at three questions to consider before you attend a house showing.
1. Is a home the right size for me?
Take a look at a home listing and find out the square footage and number of rooms in a house. That way, you'll be able to determine whether a house is the right size for you without setting foot inside the residence itself.
Of course, you should consider your immediate and long-term plans as you evaluate a home's size. If you plan to start a family soon, for example, you may want to search for a home that offers sufficient space for you, your spouse and your children. Or, if you intend to retire in the foreseeable future, you may want to pursue a small home that requires minimal maintenance.
2. Is a home located in one of my preferred cities and towns?
Think about where you want to reside. Oftentimes, it helps to make a list of preferred cities and towns and narrow your home search to these areas. And if you find a home you want to check out in one of these cities or towns, you then can schedule a property showing.
In addition, it is important to remember that a big city home may prove to be more expensive than a comparable residence in a small town. If you decide to pursue a house in a big city, you may face increased competition for city homes in comparison to small town residences too.
3. Could a home be my dream residence?
Ultimately, if there is even a small chance that a home could be your dream residence, it may be beneficial to set up a showing. If you attend a showing and find a residence is your ideal house, you can submit an offer to purchase this home. On the other hand, if you attend a showing and find a residence falls short of your expectations, you can simply continue your pursuit of your dream house.
As you conduct your search for your ideal residence, it generally is a good idea to hire a real estate agent. This housing market professional will set up home showings, keep you informed about new residences that become available in your preferred cities and towns and much more. Plus, if you ever have concerns or questions during the homebuying journey, a real estate agent is ready to respond to them.
Consider the aforementioned questions before you schedule a home showing – you will be glad you did. And if you decide to attend a house showing, you will be better equipped than ever before to determine whether a particular home is right for you.