Saturday, December 31, 2016

Buying a home, especially your first home, can be an emotional roller-coaster ride: one moment you’re filled with excitement when you find the home of your dreams, followed by anxiety as you decide how much to offer. Later on, you might second guess if you made the right decision

Knowing the right questions to ask and steps to take before starting the house hunt is one way to help keep those emotions in check. And, many common home buying missteps can be avoided by following these five tips: Leave your emotions at the door: As a buyer, decide where you want to live and which features in a home are important to you. Determine your maximum budget by speaking with a mortgage broker or financial institution and then stay firm, even if a bidding war arises. By making a plan and sticking with it, you will have an easier time walking away from a deal if it’s outside your comfort zone. Read and understand everything before you sign: Written agreements that you sign in the process of looking for and buying real estate, such as a representation agreement with the brokerage that is acting on your behalf and the agreement to buy or sell a property, are legally-binding contracts. That means you generally can’t back out of the agreement once you’ve signed on the dotted line. That’s why it is important that you understand everything in an agreement before you sign. If you don’t understand something, ask your real estate representative to explain it to you. Be sure you and your representative are on the same page: When working with a real estate representative, it’s important that both of you have a mutual understanding of what services he or she will be providing to help you buy or sell a home. Have a thorough conversation about the details and then make sure they are documented in any agreement you sign. Know your tolerance for risk: In a hot market, you may be tempted to submit an unconditional offer to get a leg up on the competition. But you need to consider whether you’re comfortable taking on that level of risk. Can you afford to fix a major issue with the home that an inspection may have detected? Or potentially lose your deposit or find yourself facing legal action by the seller if your lender denies your financing application and you’re unable to complete the deal? If not, then waiving conditions may not be the way to go to win a multiple offer situation for a home. If you do end up waiving conditions, be sure you have a contingency plan in place to manage any financial risks should they arise. Be flexible and have a back-up plan in place: Real estate transactions can happen at lightning speed, which means even the best-laid plans might have to be adjusted. What if your moving dates don’t line up? What if you have unbudgeted repairs? Think ahead and have a contingency plan in place. By preparing ahead of time, you will be well-positioned to respond to quick developments in your real estate transaction. For help with your buying and selling process call Tamara Culham Broker of Record, Larry Culham Sales Representative 705 446 8995

Posted at 07:53 PM