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Important Steps when Buying a Home

Important Steps when Buying a Home

Step 1: Do your research before placing an offer. Look up comparables. What did your neighbors sell it for? What were the differences in both the exterior and interior? Did they have fewer bedrooms, bathrooms? Did they have an old kitchen? Did one have a waterfront property? Note the differences and adjust the one you want accordingly. Don’t bid too low, because then the sellers will just think you’re playing games and they’ll actually stand more firm on their price. Bid roughly 5-20% below ask. Still hunt for a deal! You don’t need 100 people to consent on what the home is worth. You need a buyer who is looking to get out fast and who needs the cash.

Step 2: Pick a listing agent who knows how to handle negotiations very well. Get someone who is going to dedicate their time to show you multiple properties. Pick someone who comes prepared with a MLS sheet for every property you see ALONG with comparables so you know how much it really should be worth. You want someone who’s knowledgeable in the surrounding area and can tell you about the new plans that are going to develop in the community. Ask good questions to get to the bottom of their intentions. Are they after your best interest or just looking for a sale?

Step 3: Pick a home located in a great school district! Why? Resale! Resale! Resale! If you look at historical trends, the real estate prices that tend to remain neutral in recessions and go up drastically in boom markets are the homes that are attached to good schools. Your home is only worth what it can sell for. You have a much higher chance of selling to a family down the road with a home in a good school as opposed to a bad one.

Step 4: Pick a house with a lot of margin. What is the maximum you would take this home for where you can still have some cushion to make the modifications on your home and still come out ahead? Any kind of over-improvement, you’ll almost never see the return from investment. Don’t spend $50,000 on a new kitchen when you’ll only get $25,000 back on the resale! Make sure there’s enough cushion so you can do your modifications to make it livable, while still having enough room to profit.

Step 5: Make sure you do your preliminary work and utilize your inspection period wisely. Account for property taxes and closing costs. Get pre-approved for a low interest mortgage rate so you have a firm grasp on what exactly it will cost you every month. Find out what’s wrong with the house and either proceed or back away if it’s going to cost you too much.

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© 2024 JARBLY LLC is a national brand operating through itself as a Limited Liability Company in the State of FL and works with a number of professionals located throughout the country to provide client related professional services. JARBLY LLC does not guarantee the accuracy of any of the information disclosed in this website or any materials sent including listing information including but not limited to details surrounding a business or listing or property. It is important if you transact with JARBLY LLC in any capacity, you consult a legal professional. The officers, agents, directors, or principals of JARBLY LLC are not licensed attorneys. While the principal of JARBLY LLC is a licensed real estate associate, he is not an attorney. JARBLY LLC is not a registered broker-dealer under U.S. securities laws. For more details on the nature of working together please review our disclaimer at http://jarbly.com/disclaimer and make sure to consult professional legal counsel regarding transactions to be in compliance in accordance with relevant local regulatory and legal requirements.

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