Great Ideas About How to Buy A House
When thinking about how to buy a house there are many things you should think about but I have come up with 6 of the most important tips for how to buy a house. In today’s real estate market it is fairly clear that it is a Buyer’s market. With that said, you should not expect to go out and buy a home for $100,000 under asking price or be surprised that someone else is also interested in the home you like. You need to be prepared and understand your market so you can learn how to buy a house. Here is what you should think about in order to get prepared.
1. First of all if you have purchased a home in the past you need to understand that what yo paid for your last home has very little to do with what you will be for your next home. You should not get caught up in some expectation that some how what you paid for your home will correlate to what your next home will cost or to current real estate value. More importantly you should get a clear understanding of your homes value and use that to help figure what price range you can afford and where you should start your home search.
2. Now that you have that figured out you should also think about how you will sell you home if you have a home to sell. There have been markets in the past when inventories were lower that could be manipulated well by the For Sale By Owners (FSBO’s) but in this current housing environment you need to hire an expert, preferably a Realtor to help get your home sold quickly. With all the homes available you want to have an expert help you figure out the exact selling price for your home as well as have an understanding off the small nuisances of selling that can save you a ton of time and make your home be the first one to go on your block.
3. Also, you need to be sure you are current on home market values. With all the changes happening in the market it is important to know that what a home sold for 6 months ago is no longer relevant to what a home will sell for today or tomorrow. Especially considering the past few months with the tax credit expiration; if you were to use sold comps and days on market values from April you would see homes selling for much more and faster than the current conditions. With that said if you look at home prices from last month along with the showing activity you would see that things are selling quicker today with more activity. Bottom line, things change quickly so try not to get too hung up with what your neighbor purchased their home for 6 months ago just focus on the deals you are finding today.
4. Be aware of home interest rates. Rates can fluctuate and it can have a big change in your buying power. For example you would have approximately the same payment if you purchased a $250,000 home at a rate of 4.5% as you would on a $225,000 at a rate of 5%. Therefore you could potentially lose $25,000 in buying power if rates just moved slightly so pay attention to the current rates.
5. Related to rates – you should consider who you get your mortgage through. While there are any number of people out there right now hustling trying to help find loans for buyers, when you are making an important financial decision such as buying a home you will need to make sure that you are working with someone you can trust. A good mortgage professional can make the difference off you getting your home or not. I am sure you have heard of people not getting their home because the loan fell through. That is a big reason you need to work with someone you can trust to get the deal done. One thing we like to do is give you a good faith estimate that we know is competitive and then let you try to find a trustworthy source to beat our rate. If you can do that you will be confident you have a good deal.
6. Finally, recognize that despite the dire numbers and predictions, there really never has been a better time to buy a home; provided that you are ready. If you are in it with a long-term commitment in mind and you are financially ready, there are some great deals available. Over the course of time you will likely find that you will be glad you made the decision to purchase.
I hope these tips have helped you gain an understanding of how to buy a house. Please contact us or feel free to comment if you have suggestions or stories to tell from your experience.
You can get more information about Real Estate Company Canada by visiting Ontario Homes For Sale
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