Jay LeClerc's Blog
Home showings are valuable parts of the property buying cycle. If a homebuyer knows what to expect during a showing, this individual can get the information that he or she needs to determine whether a particular house is the right option.
Now, let's take a look at three things that buyers need to know about home showings.
1. A home showing is a commitment-free experience.
There is no obligation to submit an offer to purchase a house following a showing. Instead, a buyer can review his or her options and proceed accordingly.
In some cases, a buyer may want to set up a follow-up home showing as well. A follow-up showing enables a buyer to get a second look at a residence to determine whether it matches or exceeds his or her expectations.
It also may be beneficial to prepare lots of questions before a showing. That way, a buyer can gain deep insights into a home to help him or her decide the best course of action.
2. A home showing enables a buyer to get an up-close look at a house.
During a home showing, a buyer will walk through a house with a real estate agent. A buyer can ask a real estate agent questions about a residence, and he or she may even choose to take notes as the showing progresses.
It generally is a good idea to check out all areas of a house during a showing. Remember, a home purchase probably is one of the biggest decisions that an individual will make in his or her lifetime. With a comprehensive home showing, an individual can gain extensive insights into a residence's age, condition and more.
In addition, a buyer should not place a time limit on a showing. Depending on the size of a home, a showing may last a few minutes or a few hours. But a buyer who allocates the necessary time and resources to analyze a residence during a showing may be better equipped than others to make an informed decision about a house.
3. A home showing is one of many steps during the homebuying journey.
If a home showing is successful, a buyer may be inclined to submit an offer to purchase. Or, if a showing reveals a house fails to hit the mark with a buyer, this individual can continue his or her pursuit of the perfect residence.
Lastly, when it comes to setting up home showings, it often helps to hire a real estate agent. This housing market professional will make it simple for a buyer to navigate the property buying journey.
A real estate agent will schedule home showings for buyers and keep buyers up to date about open house events. Plus, a real estate agent will help a buyer submit an offer to purchase a home and ensure that a buyer can seamlessly acquire his or her ideal residence.
Reach out to a real estate agent today, and you can kick off the homebuying journey.
The decision to purchase a second home may be one of the biggest choices you will make in your lifetime. As such, it is important to consider all of the factors associated with a house purchase before you embark on a quest to acquire a second residence.
Now, let's take a look at three key factors to evaluate as you weigh the pros and cons of purchasing a second home.
1. Your Current House
Consider the state of your current house – you will be happy you did. If you assess your current residence, you may be better equipped than ever before to determine if now is a good time to start a search for a second house.
For instance, if your home needs a new roof or requires other repairs, you may want to complete these improvements first. After these house repairs are finished, you then can kick off a search for your second house. Perhaps most importantly, you can launch this home search with the reassurance that your current house is in good shape and likely won't require significant repairs in the near future.
2. Your Finances
If you still have a mortgage on your current house, you may want to focus on paying that off first. Once your mortgage is paid in full, you can conduct a search for a second house without having to worry about paying two mortgages at once.
Of course, if your current house's mortgage is paid in full, you should still evaluate your finances closely. Ensure you have sufficient finances to cover a mortgage for a second house, as well as your everyday expenses. By doing so, you can hone your search for a second house to residences that fall within your price range.
3. Your Immediate and Long-Term Plans
Think about why you want to buy a second home in the first place. Then, you can determine how this decision may impact your immediate and long-term term plans.
For example, if you want to return to college, buying a second home may affect how much money you have at your disposal that you can use to go back to school. On the other hand, if you hope to get a work promotion in the foreseeable future, you soon may have additional funds to help you make your dream of owning a second home come true.
As you decide whether to launch the search for a second house, take some time to consult with a real estate agent. A real estate agent is a homebuying expert, and he or she can provide housing market insights that you may struggle to obtain elsewhere. Plus, a real estate agent will guide you along the homebuying journey and can help you acquire a top-notch house at a budget-friendly price.
Account for these factors before you start your search, that way you can make an informed decision about whether now is the ideal time to pursue a second residence.
If you intend to find your dream house, it helps to establish a homebuying strategy. That way, you can enter the real estate market with a plan in place to accomplish your desired goals.
Now, let's take a look at three tips to help you craft an effective homebuying strategy.
1. Create Homebuying Criteria
If you know where you want to reside, you can narrow your house search. As a result, you may be better equipped than other buyers to accelerate the homebuying journey.
Creating a list of home must-haves and wants usually is a great starting point for homebuyers. This list typically forces homebuyers to think about what separates an ordinary residence from a dream house. And once a homebuyer crafts a list of home must-haves and wants, this buyer can search for residences that meet his or her expectations.
2. Budget for a Home
In most instances, homebuyers lack the necessary financing to buy a house. Luckily, lenders are available that can help a homebuyer assess mortgage options and get pre-approved for home financing.
Budgeting for a home is a major part of the homebuying process. Because if you know exactly how much you can spend on a residence, you could speed up your house search.
To get pre-approved for a mortgage, you should meet with a variety of banks and credit unions. Then, when you find the right mortgage, you can enter the real estate market with a budget at your disposal.
3. Hire a Real Estate Agent
There is no requirement to hire a real estate agent before you pursue your dream house. Yet the advantages of hiring a real estate agent can be significant, and perhaps it is easy to understand why.
For homebuyers, a real estate agent takes the guesswork out of finding the right house at the right price. A real estate agent also collaborates with a homebuyer and will go above and beyond the call of duty to ensure a buyer can achieve the optimal results.
If you want to purchase a house as quickly as possible, it may be a good idea to hire a real estate agent sooner rather than later. Oftentimes, a real estate agent will meet with you and learn about your homebuying aspirations. He or she next will work with you to craft a homebuying strategy and launch a successful house search.
Furthermore, a real estate agent is a housing market expert who will help you overcome any potential homebuying hurdles. A real estate agent understands the challenges associated with purchasing a house and will help you identify and address such issues before they escalate. And if you ever have concerns or questions as you search for your ideal residence, a real estate agent will respond to them.
Enter the real estate market with a plan in hand – take advantage of the aforementioned tips, and you can create an effective strategy to streamline your search for your dream residence.
The biggest area of your life that you need to understand before you buy a house is your own finances. Before you know what kind of house you can buy, you’ll need to understand your own buying power. While things like square footage, how many bedrooms you need, and finding the right neighborhood are important, you can’t go very far without some type of financing. While understanding how much you can spend on a property is one of the more serious parts of buying a home, it’s something that you’ll want to do. Knowing what you can spend on a home is a step to helping you land a home you love. If you understand your own numbers, you’ll know the chances that you have of an offer being accepted on a place you love.
The Elements Of Your Buying Power
Your Credit Score
This little three digit number has a lot of meaning behind it. This is the most basic piece of information that lenders use to determine your loan worthiness. The factors that influence your credit score include:
- Payment history
- How much you owe
- Length of your credit history
- Mix of credit accounts
- How much new credit you have opened
A low credit score is somewhere under 620. Having a score this low doesn't necessarily mean that you’ll be denied for a loan, but the type and amount of the loan you’re offered can be impacted. You’ll also face higher interest rates because of a low credit score. This means your mortgage could be considerably more expensive than if you had a higher credit score.
The 20 percent down as a rule of thumb actually offers many benefits to your buying power. This means that you’ll need 20% down of the purchase price of the home in cash. If you put this amount of money (or even more) down on a home, it eliminates the need for you to have to buy PMI (Private Mortgage Insurance). You’ll even be able to negotiate a lower interest rate. A large down payment may be especially helpful in competitive markets where there is a lot of buyer competition.
How Your Financial Picture Appears
Your assets and your debt-to-income ratio are also important factors in your financial picture that you present to the lender. Basically, all of these numbers let both the lender and the seller see how committed you are to buying a home. It is one of the biggest financial undertakings of your entire life. If you can’t show financial responsibility, then it may be a bit difficult for lenders to see that you’ll actually pay your loan back in a timely manner.
The better all of your financial numbers are, the more buying power that you’ll have. If your numbers are good, you’ll be able to afford more house. While it may not be the most exciting thing to look over all of your financial numbers, it’s a vital step in the process of your journey to home ownership.
Getting a home inspection is usually built into the purchase contract for most real estate transactions. A home inspection contingency protects the buyer from getting any unwelcome surprises after they buy the home (think water damage or an HVAC system whose days are numbered).
In some cases, home inspections are the defining moment between a sale or moving on to other options.
In today’s post, we’re going to talk about the reasons you might want to get a home inspection whether you’re buying or selling a home.
Home inspections for buyers
There’s a reason most real estate contracts come with an inspection contingency. Expensive, impending repairs on a home can greatly affect how much you’re willing to offer on a home, or if you’re willing to make an offer at all.
Some buyers opt out of an inspection. This can be done for numerous reasons. The most common reason is that the buyer has a personal relationship with the seller and has faith that they are getting the full story when it comes to the state of the house. The other reason is that a buyer is trying to gain a competitive edge over the competition on a home, sweetening the deal by waiving the inspection and paving the way for a quick sale.
Both of these reasons have their flaws. For one, the seller might not even know the full extent of the repairs a home may need and an appraisal might not catch all of the issues with a home.
Another reason a buyer may waive an inspection contingency is because the seller claims to have recently had the home inspected. While this may be true, buyers should still opt to hire their own professional. This way, they can guarantee that the inspection was done by someone who is licensed and has their best interests in mind.
Home inspections for sellers
As we’ve seen, home inspections are typically designed to protect the interest of home buyers. However, sellers also stand to gain from ordering their own home inspection.
If you’re planning on selling within the next six months to a year, it will pay off to know exactly what issues the home currently has or will have in the near future. This will give you the chance to make repairs or address issues that could cause complications with your sale. You don’t want to be on your way to closing on an offer to suddenly realize you need to pay and arrange for a new roof.
So, whether you’re a buyer or seller, home inspections can be immensely beneficial to learn more about your home or the home you’re planning on buying. It will help you be prepared to make repairs if you’re a buyer. Or, if you’re a seller, you can make a plan to negotiate repairs with the seller based on the findings of the inspection.