The process of buying a house is not as simple as searching through the real estate listings, contacting the seller, and putting your money on the table. In fact, there is a lot more to the whole process, which will be challenging if you lack the help of a professional realtor. From submitting an offer to attending open house tours, the stages of buying a home should not be rushed.
When investing in a home with a helping hand from a broker, a realtor will keep a percentage of the final sale price. After all, he or she must make money in some way or another! This commission will be well deserved if the realtor is good at what they do. Feel confident when choosing a realtor by assessing their qualities.
If he or she boasts the following attributes, you are onto a winner:
- Great Communication Skills – The way in which a realtor communicates with his or her clientele will have a direct effect on the realtor’s success in the property industry. The real estate agent must know what you, the buyer, is searching for specifically. From the location to the budget and the interior/exterior design, a realtor will be a good listener. Furthermore, they will keep the client(s) up-to-date with the latest information regarding best offers and real estate market trends.
- Full Time Real Estate Agent – Understanding the local housing market is absolutely essential for a realtor to perform their job properly, make a commission, and satisfy the buyer. The most successful real estate agents will be self-motivated and have the ability to hustle in a fast-paced environment. With the local housing market changing on a daily basis, it is crucial that the realtor is able to solve problems with tenacity and attention to deal. Hiring a full time realtor allows the buyer to communicate with the agent whenever need be. Hiring a part-time realtor can potentially cause communication and scheduling issues.
- Knowledge of Current Real Estate Market – Not only will a good real estate agent have knowledge of the property but also, the area. From the future developments that are expected to take place in the future to the conveniences, schools, and transport in the local area, a realtor must do their homework.
- Honesty and Integrity – Never buy a home with the help of a realtor who does not possess these critical qualities. An honest realtor will have your best interests in mind and not just have the commission in mind. Trustworthiness is absolutely essential and in order to get a true understanding of a realtor’s integrity.
- Negotiation Skills – Dealing with tricky situations is all part of a realtor’s job. Focus on how well the real estate agent is able to build rapport when you meet with them for the first time. Can they solve problems and eliminate misunderstandings before they arise? Ask yourself these questions to ensure you choose a realtor who can negotiate the best deal on your dream home.
Experience is absolutely paramount for a real estate agent to help you find your ideal home for the best price. In addition to their level of experience, it is crucial that you find out how many years the realtor has worked in the industry. Preferably, he or she will have gained the title of professional realtor at least five years ago. A realtor who has a lot of contacts in the industry is someone worth teaming up with for a house hunt.
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Just because you have your eye on a property and have been shown around the premises by a professional real estate agent, it does not mean that you will be the only person interested in submitting an offer. In fact, there could be multiple people making an offer at the same time, which is why it is imperative that your offer really stands out!
It is rare for a buyer to offer the seller the asking price, with most buyers putting their haggling skills to the test in order to land their dream home for a desirable price. So, how can you peak the seller’s curiosity and improve your chances of receiving a positive response?
Capture the seller’s attention with a personal letter. A traditional tactic that has not lost its touch, personal letters can make you stand out among a sea of bidders.
How to Write the Perfect Personal Letter
Including a personal letter with your offer is known to help get an offer accepted. Below, we discuss the three main points to include in your letter:
- Personal Information - Opening up to the seller will strike a chord with them. It will help them to get to know you, without even meeting you. Furthermore, it will allow them to make a choice based on who they would (ideally) like to transfer home ownership to. Including personal information in your offer letter that is related to your profession, your pets (if any), and your family size will make your offer stand out. Plus, the inclusion of personal information will prove to the seller that you are a serious and honest buyer.
- Express Emotion - Connecting with the seller on an emotional level can be a challenge, but if you accomplish it, the chances of your offer being accepted are far greater. Perhaps you have decided to buy a new home so that you can use the leftover expenses to fund a relative’s surgery or a child’s college education? Maybe you want to relocate as a way of feeling safer in the neighborhood? Whatever your reason(s) for wanting to buy a particular property, don’t be afraid to express emotion in your letter.
- Show Appreciation - It is nice to be nice! Even if the seller already has someone else in mind, this doesn’t mean that they don’t deserve some gratitude. After all, they invited you into their home and took the time to read your letter, right? Be polite and you never know – the seller could change their mind and accept your offer over someone else’s.
When you realize the difference a personal offer letter could make to your chances of being accepted for a property purchase, you won’t want to approach a seller without writing a letter ever again! A well-written letter that demonstrates your suitability for the house can be read over and over by the seller, thus enabling them to make an informed decision. After all, it is their pride and joy they are selling, so they won’t be willing to hand the keys over to just anybody.
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One of the longest standing real estate traditions is an open house. If you are new to buying properties, take a moment to understand what an open house is and how it could aid you in making a purchasing decision. A way of generating traffic and luring in interested buyers for a potential sale; open houses are usually organized on weekends. The real estate agent will do a number of things to prepare for an open house, such as create ads in the local newspaper, put signs up in the surrounding area, and even embellish the property with banners and balloons to capture the attention of passers-by.
It’s not just the real estate agent who has a duty during an open house, however. As someone who is considering investing in a property, it is your duty to ask questions at this stage. Below, we expand on the five main questions you should be asking prior to purchasing a commercial or residential property.
- Why do the sellers want to move? - By asking this question face-to-face, rather than over the phone, you can get an honest answer from the seller or the seller’s realtor. Should the homeowner be transferring ownership of the premises due to relocation, work-related issues, or finances, you needn’t worry. If the seller is transferring home ownership because of constant repairs or if the area or schools are unsafe, you should think about this decision further.
- How long has the property been on the market? – The longer a property has been on the market, the more questions you should be asking. A desirable piece of real estate will not be on the market for long before it is snapped up. If a home has been on the market for a while, be sure to check the market value and condition of the home. Some seasons attract more buyers than others, so take this into account as well.
- How many offers have been made? - When you know you are competing with other offers, decide whether or not you want to proceed or walk away. Asking this question is essential because it gives you an idea of what the seller deems a reasonable offer. Additionally, it enlightens you about how much interest the property is getting.
- Are there any issues with the home? – Not every property featured on the real estate market will be perfect. In fact, a lot of buyers will be on the hunt for properties that they can acquire for a discounted price and renovate. If you are looking for a home that doesn’t need too many repairs, be sure to ask major repair questions, such as when the roof was last repaired.
- When was the house last updated? – You can figure out if the property is worth the asking price based on how often it has been maintained and/or updated over the years. If you are looking to avoid making updates down the road, we suggest finding a property that has been recently updated.
Take your time looking around when you attend an open house and try your hardest to envision yourself living in the home. Think about how your furnishings will look inside each room, and if the price of the home falls within your budget. Don’t forget to factor in the closing costs, to avoid unexpected surprises.
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Your dream home doesn’t have to be something far off in the distant future; it can be something you start looking for now if you’re smart about how you approach the process. You can’t just go out, find a great place and sign on the dotted line. You need to do some advance planning and take several factors into account before you begin house hunting. Check out these seven tips to help you find your dream home and you’ll soon be ready for move-in day.
Determine your budget. The first step in finding a home is to know what you can afford to buy, which includes consideration of what you can afford as a down payment, monthly mortgage payments, insurance and other typical household expenses. There are several online calculators you can use to assist you in finding a proper budget. (more…)
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Buying a home is a big investment. You are going to see more wrong houses than you will the right one. Even then, you may see more than one home which suits you. So how do you know which home will be perfect for your family? With these top tips for house hunting, you will be ready for the challenge.
Get Your Finances Together
Knowing how much you want to spend is the first step to finding the right home. Do not let yourself get sucked into buying a home you cannot afford. In order to prevent this many people tell their realtor their top budget is $25,000 – $50,000 less than they can afford. This way you end up with room to negotiate and money for new furniture.
Additionally, when you (more…)
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