If you've ever thought about buying a home but weren't sure how the process would go, you're in luck. This list includes everything from advice by to help you prepare your finances, to guidance on how to make the home buying experience less stressful. Tiffany House Fort Lauderdale pulled together a list of resources that can help first-time buyers get a good feel for what to expect when it comes to buying a home.
1. Get Preapproved
If you're thinking about buying a home and want a loan, you need to be preapproved first. Just like in business, the lender knows that if you have money coming in and you need it, there is more money to be made for them in the future. So, if you want a loan, they will work harder to get it than if you don't have any money coming in.
2. Negotiate the Price
When you go into negotiations with price, it’s important to remember that you’re competing with yourself, not others. People generally pay far more than they should because they want something. Once you understand what you want, don’t fall into the trap of thinking that you should give something away to win. Remember, if you didn’t want it, you wouldn’t be asking for it. It might seem counterintuitive, but this is really the only way to get something for free. The only exception to this rule are certain things like a professional service, where your reputation is more important than the price.
3. Save Money on Closing Costs
Closing costs are the fees and costs associated with a real estate sale. These costs include a buyer's agent’s commission, title insurance, and the cost of recording a deed. It's worth it to research the costs associated with selling your home before you even begin to think about making an offer. Start here to get an overview of the typical costs associated with selling a home.
4. Use Multiple Offer Process
Here’s what happens when you only have one offer process: You only have one chance to make a sale. This means you have to figure out how to present your offer in the best light for the customer. The key is to provide a unique and compelling offer that is difficult to refuse. To accomplish this, consider using multiple offers with different prices and terms, or multiple offers with varying sizes, or even multiple offers that are only available for a limited time.
5. Avoid a Sale on the Initial Listing
The best strategy is to make the listing look exactly like what it is: a listing for a real estate property, not a sale. Make sure that you don't include any of the following details in your initial listing: price, address, photos, and any information that tells the buyer that you're trying to sell the property. You might even consider taking the listing down until you've got enough interest to make a deal happen. Once you do decide to make the sale, you can then use urgency tactics to help close the deal.
6. Keep Your Offer Close to the Market Value
You’ve got a great deal to sell, but what if the market is saturated? Or, what if the competition already has established themselves and is fighting hard for a piece of the pie? In this case, it’s important to be very careful about pricing. If you’re afraid to lose customers by offering too little, you’ll risk driving away potential buyers. On the flip side, if you’re offering too high of a price, you may turn off prospective buyers who would have been attracted to your product or service in the first place. The best strategy is to offer a fair, competitive price for what you’re selling.
7. Haggle Over the Term of the Contract
If you have to haggle over price, you're probably not getting the best deal. Haggling, or "lowballing," is used when you have to fight to get a better price. When you haggle, you've got two choices. One, you can try to get someone else to pay more than you think the item is worth, or, two, you can keep your asking price and hope you don't get shot down.
8. Find a Mortgage that is Within Your Means
So, you've found a mortgage you love, but the lender you applied to isn't as accommodating as you thought they would be. Maybe you have a high credit score, but your income is low. You might even be surprised to find out that there are lenders out there that will work with your unique situation, and will still give you a competitive rate. In the end, the only person who can really help you is yourself. So, let's take a look at some ways you can find a mortgage that works for you.
9. Do Not Try to Beat the Competition
For home buyers, there is always competition, but the competition for buying a home is stiffer than it was even just a few years ago. When you factor in the growing number of potential buyers, the increased availability of home financing options, and the decreasing time between now and the start of a new job, it’s harder than ever to get a house.
Home buying has changed dramatically in recent years and is no longer the experience it was just a few years ago. The rise of online shopping, the increasing popularity of virtual tours, and the changing demographics of home buyers all mean that buying a home can be a different experience for buyers than it used to be.