You may think that buying a home, although not simple, is a matter of finding the house you love and putting in an offer. However, there are a lot of variables that can influence your home-buying experience. Are you shopping for a pre-owned house or new construction? Are you seeking a home mortgage loan, or paying cash? And there’s more, such as buying foreclosures, for sale by owner, and other options to consider. Here are some things to consider when purchasing a house.
- 1 Coming Up Short Handed | What You Get with Your Home Purchase
- 2 How to Buy a House with a Realtor®
- 3 Buying New Construction | The Perks and Pitfalls of New
- 4 How to Buy a House While Selling Another
- 5 How to Buy a House with Cash
- 6 How to Buy a Foreclosure
- 7 How to Buy For-Sale-By-Owner (FSBO)
- 8 What Does it Cost to Close on a House
Falling in love with a house may be the easy part, especially if the owner has properly staged the property. You may find yourself swooning over a light fixture, upgraded appliances, or a ceiling to floor mirror with a wood-carved frame that matches the design of the house as if it were meant to be there. However, none of these items are guaranteed when you purchase a property. Many homeowners are dreadfully disappointed when they take over a property to find it bare of the features they swooned over when making their offer. When in doubt, ask. When you see a fixture that looks like its meant to be there, ask if it’s included with the house.
Even when a seller advertises a house with appliances included, it doesn’t mean you’ll find the same appliances when you move in as when you toured the property. Some sellers take their upgrades with them, replacing the appliances with lesser quality items.
Make sure everything is detailed extensively in your contract to avoid unwanted surprises. Read More
How to Buy a House with a Realtor®
Before contacting real estate agents to work with, be financially prepared to purchase a house before you begin looking. Real estate agents are paid commissions, meaning they don’t get paid until you seal the deal with the seller. Once you’re pre-qualified or have sufficient cash, then research real estate agents to determine which is suited to your needs. Provide your agent with your criteria such as budget, location, size, features, and separate your want list from things you must have. Be realistic about your budget and what your money will buy in the market you’re investigating. Your agent will help you tour homes, place an offer, and negotiate terms when necessary. He or she will guide you through the contracts, and the closing process. Read More
Buying New Construction | The Perks and Pitfalls of New
There is intrigue to being the first person to move into a house, but you may also enjoy the pleasure of selecting finishes such as countertops, cabinets, and flooring. Upgrades are an extra expense.
The price of new construction homes is rarely negotiable.
Upon inspection, look for cracks in the walls, especially near the ceiling and corners. Turn on every faucet, flush every toilet, flip every switch, and test every socket. Builders will usually make any repairs before you move in. Furthermore, new construction homes have yet to settle, so expect some shifting on the foundation.
If the house is in a community with a homeowner’s association, examine the regulations and guidelines, as well as the HOA fees before you sign on the line. You may love the house but hate the bylaws.
How to Buy a House While Selling Another
You have choices. You can choose to obtain a second mortgage on the home you’re buying so you can relocate before selling. Or, you can include a contingency in your offer that the contract is only valid if your current house sells.
When you have a contingency, beware of timelines. Closing escrow can be a negotiable factor – but if the seller is in a hurry to get-up-and-go, you may find yourself crunched for time or losing out to another buyer who is ready to move. Another option is to consider renting out your current home until a future date when selling is more feasible. You might benefit from considering a lease with an option to buy. Read More
How to Buy a House with Cash
Before you consider a cash purchase, make sure you have at least 3 to 6 months of expenses in the bank, as well as a nest-egg for unforeseen expenses. Next, remember that you’ll not only be paying the price for the house, but you’ll also be responsible for property taxes, title transfers, homeowner’s insurance, inspections, and appraisals in addition to agent commissions. Read More
How to Buy a Foreclosure
Work with a professional real estate agent with experience in foreclosure sales. There are different types of foreclosures including short sales, bank owned properties, and houses that are government owned. Each type of foreclosure has a unique set of terms and conditions. Make sure the home is inspected because most foreclosures are sold as-is with no warranties or guarantees?
How to Buy For-Sale-By-Owner (FSBO)
Make sure your real estate agent specializes in working with properties sold by the owner, or you may find yourself alone trying to navigate tricky waters. Detail explicitly in writing who is responsible for what in the transaction – what the seller pays for and what you pay for, such as inspections, appraisals, title transfers, etc. Obtain a full disclosure from the seller, including verification that the property is free of tax debts, liens, and can be legally sold. Although some sellers think they’re saving money by cutting out the agent as a middle man, the agents contribute tremendously to the legalities of the transaction. Be thorough when reviewing the contract for the sale of the property.
What Does it Cost to Close on a House
Each phase of a real estate transaction requires professional services. The bills for those services are usually withheld until the close of sale when each service provider gets paid. Closing costs include appraisers, inspectors, lenders, clerks, agents, and more. You can estimate closing costs at around 1 percent to 8 percent of the total value of the property you’re buying. Usually, the buyer pays closing costs.
Buying a house isn’t as simple as falling in with a home and making an offer. Put some thought into the type of property you’d like to buy, how you’d like to pay for that property, and what is or is not included with the house you purchase. Trust your real estate agent. Inspect properties carefully whether they’re pre-owned, new construction, or foreclosures. And try not to romanticize the home-buying experience. You’d rather be pleasantly surprised than terribly disappointed after you’ve made the investment.
Call The Wright Choice Team today at 804-307-2589 to tour available homes for sale in the Chesterfield County area.