Posts Tagged ‘Home Buying’

Competitive Tips for Buyers

First, and perhaps most importantly, are you ready to buy? Readiness is not impulsiveness, however.

Before you begin your home search, know your budget and get pre-approved for a mortgage. Why? This will help you to determine your price range and will help you narrow your home search.

Next, determine what amenities are must-haves, and what things you can do without. By having a clear plan of action, you’ll know a good deal when you see it and won’t hesitate to act. Many would-be buyers miss out on their dream home because of hesitation. They need “the night to think about it” or “to see a few more” before they make a decision. If the home is a good price and in a desirable location, one night could mean missing out on the house altogether.

Communication doesn’t end there. Keep in contact with your agent about new listings and showings. Homes come on the market all the time and in hot neighborhoods they don’t last long. If you wait even a few days, a home could be scooped up by another eager buyer.

Bid competitively. This is where your agent can be invaluable. They have access to your market’s stats, which show for how much comparable homes have been selling. This means you may be able to come in a little under list price and still be competitive, or it may mean that the property is already underpriced and to beat out any other offers, you need to offer more than the asking price.

Competitive doesn’t mean handing everything to the seller on a silver platter, though. Sellers may ask for certain concessions, such closing costs, terms, as-is purchases (without an inspection contingency in the offer), and requests regarding closing dates. Some of these requests may seem reasonable to you, but don’t be afraid to stand your ground if others are too far-fetched.

And finally, stick to your guns. It can be easy to lose sight of your true end goal, which should be the home you love at a reasonable price. This means that your predetermined budget, well, it must remain your budget. Don’t overpay for a house simply because you’ve gotten caught up in the excitement of a bidding war.

For further assistance with your home buying and selling needs, contact RE/MAX Plus (585) 279-8200.

 

I was recently asked how rising interest rates affect buying a home and mortgage qualifying.

When you are buying a home, the actual mortgage, principle and interest, is calculated on between 28% and 35% monthly income. The payment on a $100,000 loan at 5% is $536.82 principle and interest. At 6% it is $599.55 principle and interest per month. Over the life of a 30 year loan, you will be paying almost $22,000 more interest. Not to mention that you can afford more home at the lower interest. At lot more than the previous $8000 home buyer incentive!