You repeatedly hear the same real estate advice and you’re beginning to wonder if you should really pay attention to it. Are these suggestions just over-hyped or is there some truth to them? Here are 6 real estate rules that you should follow when buying a home.
1- Get Pre-Approved Before House Hunting
If you listen to no other real estate advice, follow this one. Getting pre-approved before house hunting will save everyone time and a headache. A pre-approval will allow you to know how much house you can afford. It will make your offer on a home seem much more credible. It will also save you time between finalizing a sales offer and closing on a home.
2- Location, Location, Location
This saying seems corny and cliche, but it carries a lot of weight. You can do renovations to improve your home, but you cannot change where it is located. Buying in a great location will help your home to retain its value and help you to sell when the time is ready.
3- Don’t Buy the Most Upgraded House on the Street
If you have the most upgraded house on the street, the rest of the homes around you will drive your value down. Buying the most upgraded house does not afford you the opportunity to get sweat equity in the property. It can be difficult to appraise your home because there aren’t comparables. Also, you may price your home outside of what homebuyers can afford for that particular neighborhood.
4- Look Past Simple Cosmetic Fixes
Keep an open mind to simple cosmetic fixes while house hunting. Being willing to buy a house with dated wallpaper and other cosmetic shortcomings may help you to negotiate a good price. Painting or updating light fixtures can make a big impact in your house with very little money.
5- Have Realistic Expectations
Everyone wants to stretch their budget as far as it can go, but you must remain realistic about what you can afford. Take a hard look at your budget and your wish list. Decide what items you are willing to compromise in order to stay within your budget. Very few homeowners get absolutely everything they want in their home search.
6- Use a realtor
A realtor is an invaluable asset to buying or selling a home. Interview and find a great agent, don’t just expect any realtor to do a great job. A good realtor will have professional expertise that will help you in many situations. They are your advocates throughout the home buying or selling process.
7- Understand Your Market
The last among the real estate rules, It is critical to understand the market you are buying in. Can you expect to find yourself in a bidding war? Is there a great demand for homes in your price range urging you to move quickly if you find a house you want? Are most of the homes in your desired area short sales that will take a while to sell? Utilize your realtors professional expertise in this area to understand your market and act accordingly.