Real Estate Info
Real Estate - Finding A Home
You will definitely want to BOOKMARK THIS REAL ESTATE PAGE.
Save money on your home. You can identify a home or property and save fairly rapidly by following a few simple steps. In as little as three days you can identify potential homes. How? Read on.
Real Estate Agents. Begin by understanding real estate agents. The real estate agents are helpful industry professionals who work hard to earn their commissions which varies. In California for example, the commission is 6%. So on a $300,000 transaction the commission is $18,000. This commission on the sale of a home is typically split between the real estate agent for the buyer and the real estate agent for the seller.
With some effort on your part you can save on that commission or ask your agent to contribute a portion towards the transaction. The best way to do this is to have the agent work both sides of the transaction and ask them to take a reduced commission. Simply tie the real estate agent and the home for sale together. This is described below. If they can do the loan for you, you will save even more.
Drive the area. Once you have identified the area you want to live, take the time to drive it. Spend a day wandering the neighborhood finding homes for sale. The weekend is the best time to be driving around because open houses are common on the weekend. At this point, you do not need a real estate agent. Drive by as many homes in the area as you can stand without losing your mind, but drive by at least twenty (more if possible) homes that are of interest to you before you contact an agent. Record the address of the home and the contact information of the homes you like to see.
Understanding market value. Two things happen when you drive a neighborhood. First, you identify properties that are of interest to you. Second, you will develop a feel for property values. Understanding the price of homes in your market will help you know what kind of offer to make on the home.
Open Houses. Open houses are a great way to see the inside of a home without pressure or obligation. Visiting open houses will solidify what you are looking for in a home. Also, this will further enhance you understanding of home values. Again, you do not need an agent yet.
Also, when you visit the homes be polite and explain you are testing the waters. Generally, the real estate agent showing the property will ask to you sign a log to document who was there. Be clear with every real estate agent that you are looking for someone to work both sides of the transaction. If there are five homes for sale that are of interest; then you will likely be talking to five real estate agents.
BOOKMARK THIS REAL ESTATE PAGE.
Before you walk inside a property with an agent, explain your plan and intentions with each agent you talk to. You will have a very steep learning curve and learn tremendous amounts of information about real estate agents and what to look for in an agent. Include discussion of loan financing. Ask the agents how much their commission is going to be. This will help you negotiate with the agent. If you cannot come to a general agreement on commission and the structure of an offer, visiting the home will only cost you money.
Tour the homes. Once you have identified a home for sale that is of interest to you, contact the agent to schedule a tour. Explain you are interested in the home and you are working with real estate agents on other homes. Naturally, these agents will pitch to you that they have another great property to show you that is similar to the one you will be looking at. If you like the agent, and they are working both sides of the transaction; then great. Go look at the property if you think you would be interest. Tour the inside of twenty homes. You will probably identify the home you want within ten homes.
Make an offer. When you decide on your new home, make one offer at a time. Be straightforward and honest with all the players. Keep them informed. If an offer is rejected, then go to the next property. If an offer is accepted, then congratulations! You have just created a win-win-win situation for the real estate agent, the home seller and yourself. Great job!
Final notes:
Get a home inspection. If you know everything wrong with a home; then you know what you are dealing with when you move into it. Home inspections will reveal 99% of your problems. And it is extremely unlikely you will find a major problem after you move in to the home.
Do not walk into a home you know is not right for you. If you find your dream home and it is two hours from work; then you will never be happy in it.
Happy home hunting!