BUYERS: Save Thousands When You Buy Your New Home!

Buying a home is a great investment, possibly the largest investment you will ever make, so it seems logical that you would want to invest your money wisely when the time comes to Buy Your New Home.  The following report will tell you simple but often-overlooked procedures that will allow you to maximize the return of the dollars you invest when you Buy Your New Home.

Things to consider when you Buy Your New Home

Most home buyers have two primary considerations when they start looking for a home.  First, you want it to meet your needs and desires, and secondly, you want to get the best buy possible when you Buy Your New Home.  Successful home buyers emerge from a sale with the features they want in their new home at the best price available in the market.

Know What You Are Looking For when Buy Your New Home

Take the time to write up a list of your practical needs when shopping to Buy Your New Home.  Once you complete that list, then make another list of desires. When you go out and actually begin viewing houses, be sure your choice is one that fulfills most of your needs when you want to Buy Your New Home.  It is not uncommon for someone to start out with very specific needs and wants but fall in love with a home offering different features.  Ideally a house will come along that has all of your needs and desires, but sometimes that doesn’t occur.  Be careful not to get caught up in the excitement of home shopping and end up with a home that is not as close to perfect as possible.  In the long run, finding a home that best suits all of your needs will be more satisfying than a house that has a few fancy features but ultimately is an inconvenience when you Buy Your New Home.

Get Pre-Qualified By A Professional Mortgage Lender Before you Buy Your New Home

You should be pre-approved for a loan by a professional mortgage lender in order to Buy Your New Home.  By understanding what you can afford, you will not spend time looking for homes that are out of your price range.  You also need to understand the various financial aspects of the sale, from whether to spend more up front or make a smaller down payment and work with a larger loan.  There are several costs to consider in the process before you Buy Your New Home.  Your REALTOR can recommend a reputable mortgage lender who has the reputation of providing excellent service and good rates.  Remember, the backbone of any financial transaction is knowing what you are capable of before you hit the negotiating table.  Being pre-qualified will allow you the freedom to select the house that best fits your budget with confidence.

Choose Your Agent Wisely Before you Buy Your New Home

Any agent will show enthusiasm and will want to help you locate and Buy Your New Home; they need:

A.  Experience at assisting buyers in locating the best home.
B.  Ability to use technology to search the market thoroughly.
C.  To review with you comparable home sales in the area you choose.
D.  Information pertaining to new homes coming on the market that other agents do not know of.

Working with a full-time professional real estate agent is a must. Choose your agent by asking questions of him or her before deciding on them to help you Buy Your New Home.

Find out how knowledgeable they are about houses currently for sale in your price range and also of houses that have recently sold.  Can your agent recommend a good lender that has the reputation of excellent customer service and low rates to assist your new buyer with financing?  A good listing agent can get your house sold quickly at TOP DOLLAR and help you Buy Your New Home.

Buy Your New Home

Secrets to Buying the Best House for Your Money
1. Get “Pre-Approved” – Not “Pre-Qualified!”

Do you want to get the best house you can for the least amount of
money? Then make sure you are in the strongest negotiating position
possible. Price is only one element in the negotiations, and not
necessarily the most important one when buying a house. Often other terms, such as the
strength of the buyer or the length of escrow, are critical to a
seller.

In years past, I always recommended that buyers get “pre-qualified” by
a lender before looking for a house. This means that you spend a few minutes on the phone with
a lender who asks you a few questions. Based on the answers, the
lender pronounces you “pre-qualified” and issues a certificate that
you can show to a seller. Sellers are aware that such certificates
are WORTHLESS when it comes to selling their house, and here’s why! None of the information has been
verified!

Many times unknown problems can come to the surface! Some of the
problems I’ve seen include recorded judgments, alimony payments due,
glitches on the credit report due to any number of reasons both
accurately and inaccurately, down payments that have not been in the
clients’ bank account long enough, etc.

So the way to make the strongest offer today is to get “pre-approved”.
This happens AFTER all information has been checked and verified. You
are actually APPROVED for the loan and the only loose end is the
appraisal on the property. This process takes anywhere from a few days
to a few weeks depending on your situation. It’s VERY POWERFUL and a
weapon I recommend all my clients have in their negotiating arsenal.

2. Sell Your Property First, Then Buy the House

If you have a house to sell, sell it before selecting a house to buy!
Contingency sales aren’t nearly as strong as one that comes in with a
ready, willing and able buyer. Consider this scenario: You’ve found
the perfect house – now you have to go make an offer to the seller.
You want the seller to reduce the price and wait until you sell your
house. The seller figures that this is a risky deal, since he might
pass up a buyer who DOESN’T have to sell a house while he’s waiting
for you. So he says OK, he’ll do the contingency but it has to be a
full price offer! You have now paid more for the house than you
could have because of the contingency, and you have to sell your
existing house in a hurry! Otherwise you lose the house! So to sell
quickly you might take an offer that’s lower than if you had more
time. The bottom line is that buying before selling might cost you
THOUSANDS of dollars.

3. If you’re concerned that there is not a house on the market for
you, then go on a window-shopping trip. You can identify possible
houses and locations without falling in love with a specific house.
If you feel confident after that then put your house on the market.

Another tactic is to make the sale “subject to seller finding suitable
housing”. Adding this phrase to the listing means that WHEN YOU DO
FIND A BUYER, you will have some time to find the new place. If you
don’t find anything to your liking, you don’t have to sell your
present home.

3. Play the Game of Nines

Before house hunting, make a list of things you want in the new house.
Then make a list of the things you don’t want. You can use this list
as a guide to rate each house that you see. The one with the
biggest score wins! This helps avoid confusion and keeps things in
perspective when you’re comparing dozens of homes.

When house hunting, keep in mind the difference between “STYLE AND
SUBSTANCE”. The SUBSTANCE are things that cannot be changed such as
the location, view, size of lot, noise in the area, school district,
and floor plan. The STYLE represents easily changed surface finishes
like carpet, wallpaper, color, and window coverings. Buy the house
with good SUBSTANCE, because the STYLE can always be changed to match
your tastes. I always recommend that you imagine each house as if it
were vacant.

Consider each house on its underlying merits, not the seller’s
decorating skills.

4. Don’t Be Pushed Into Any House

Your agent should show you every available house that meets your
requirements. Don’t make a decision on a house until you feel that
you’ve seen enough to pick the best one.

A decade ago, homes were selling quickly, usually a few days after
listing. In that kind of market, agents advised their clients to make
an offer ON THE SPOT if they liked the house. That was good advice at
the time. Today there isn’t always this urgency, unless a home is
drastically under priced, and you’ll know if it is.

Don’t forget to check into the SCHOOL DISTRICTS of the area you’re
considering a purchase of a house in. Information is available on every school; such as class
sizes, % of students that go on to college, SAT scores, etc. You can
get this information from this web site.

5. Stop Calling Ads!

Please note – ads are sometimes created to make the phone ring! Many
of the homes have some drawback that’s not mentioned in the ad, such
as traffic noise, power lines, or litigation in the community. What’s
not mentioned in the ad is usually more important than what is.

For this reason, I want you to be very careful when reading ads.
Remember that the person writing the ad is representing the seller
and not you! The most important thing you can do is have someone
on your side looking out for your best interests. Your own agent
will critique the house with an eye towards how well it meets your
needs and will point out any drawbacks you should know about. So
whether you decide to work with me or not, pick an agent you feel
comfortable with and enlist the services of that agent as a buyer’s
broker. Then you become a client with all the rights, benefits, and
privileges created by this agency relationship, and you’re no longer
just a shopper. Did you know that many homes are sold WITHOUT A SIGN
ever going up or an AD EVER BEING PUT IN THE PAPER? These “great
deals” go to those people who are committed to working with one
agent. When an agent hears of a great buy, who do you think he’s
going to call? His client, who he has a legal obligation to work
hard for you, or someone who just called on the phone and said
“keep your eyes open”? So to get the best buy on a property, I always
recommend that you hire your own agent and stick with him or her.

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Finding the Best Real Estate Professional

Finding the right real estate professional requires doing a little research and asking a few questions.

You need to know everything about the selling process. What is the marketing strategy? What kind of advertising will be done by the Real Estate Professional? Is the Real Estate Professional capable and willing to communicate effectively? Can the Real Estate Professional effectively present and sell the less-noticeable assets of the property?

Real Estate professionals also need to be knowledgeable about the community. The Real Estate Professional needs to have a feel for the history of the area and the approximate price that people will be willing to pay. Also, Real Estate agents should know what the competition is and how much it will effect your sale.

NEVER choose a Real Estate Professional on price alone. Remember that a Real Estate Professional cannot magically raise the selling price of the house. Consider the buyer. The purchaser won’t willingly pay too much; it’s most likely that he or she will do research on the market and try to find the best product for the best price. The facts simply cannot be changed, no matter which Real Estate Professional you select. In spite of these unchangeable factors, the Real Estate Professional you select must still be diligent and knowledgable.

If your property does not elicit attention within several weeks, the cause can most likely be attributed to one of these three factors: location, condition, and price. The location obviously cannot be changed. You should consider examining the conditioning of your property and reevaluating the marketing strategy. Ask your Real Estate Professional to offer an explanation of the competition and your pricing strategy.

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10 Important Tips to Successful Real Estate Investing

Become great  at Real Estate Investing – 10 Important Secrets

When it comes to Real Estate Investing, everybody has certain goals and aspirations. However, we have found that there are certain guidelines every aspiring real estate investor needs to know:

1. When deciding to jump into Real Estate Investing Compare Property Values and Rents
Financial statistics only go so far; the best measure of a property’s market value is often the sale prices of nearby properties. The same holds true for area rents. A low price can often be justified by a reasonable rent; renters who can afford a high rent can afford to buy instead, so reasonably priced rent is a need.

2. Be careful – Tax laws may change when it comes to Real Estate Investing
Don’t base your tax investment on current tax laws. The tax code is constantly changing, and a good investment is a good investment regardless of the tax code. The right property with the right financing is what you should look for as an investor.

3. Specialize in something you Know
Start in a market segment you know when you begin Real Estate Investing. Whether you focus on fixer-uppers, foreclosures, starter homes, low-down payment properties, condominiums, or small apartment buildings, you’ll benefit from experience by specializing in one aspect of investment real estate properties.

4. Know the Costs going in!
Know the financial statements inside out. What are operating expenses? What are loan payments? Vacancy costs? Taxes? What does the cash flow statement look like? These are key issues that must be addressed before making a solid Real Estate Investing plan.

5.To be successful at this type of Real Estate Investing know where your tenants are coming from.
If the last rent increase was recent, your tenants may be considering a move. If tenants have a short-term lease, they may be living there simply to attract unsuspecting buyers. It is also important to collect the tenants’ security deposits at closing.

6. Assess the tax situation
Taxes are an integral part of successful Real Estate Investing, and they often make the difference between a positive cash flow and a negative one. Know the tax situation, and see how it can be manipulated to your advantage. It may be a good idea to consult a tax adviser.

7. Investigate insurance coverage while planning your Real Estate Investing ideas.
If seller’s coverage is based on lower-than-current replacement value, your insurance cost may increase when you pay a higher purchase price.

8. Confirm Utility Costs
Ask the local utilities to verify recent utility expenses, especially if any of these costs are included in your tenant’s rent.

9. Consult Your Accountant about your plans for Real Estate Investing.
Taxation is a key element of successful real estate investing, so be sure to find an accountant who is well-versed with the constantly evolving tax code.

10. Inspect!
Make sure that you always perform a thorough inspection of the property before buying it. Never, ever buy any property without at least examining the site. In some cases, hiring professional inspectors to examine the structural mechanical system may be a sound Real Estate Investing plan.

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How to Make Money in Real Estate Investing

Lower Your Taxes when wanting to make money with real estate investing.

Tax incentives for real estate investing can often make the difference in your tax rates. Deductions for rental property can often be used to offset wage income. Tax breaks can often enable investors to turn a loss into a profit.

For which items can investors get tax breaks? You could claim deductions for actual costs you incur for financing, managing and operating the rental property. This includes mortgage interest
payments, real estate taxes, insurance, maintenance, repairs, property management fees, travel, advertising, and utilities (assuming the tenant doesn’t pay them). These expenses can be subtracted from your adjusted gross income when determining your personal income taxes. Of course, these deductions cannot exceed the amount of real estate income you receive from your real estate investing. In addition to deductions for operating costs, you can also receive breaks for depreciation. Buildings naturally deteriorate over time, and these “losses” can be deducted regardless of the actual market value of the property. Because depreciation is a non-cash expense — you are not actually spending any money — the tax code can get a bit tricky. For more information about depreciation and various tax alternatives, ask your tax advisor about Section 1031 of the U.S. Tax Code.

Have a Positive Cash Flow while real estate investing.

There are two kinds of positive cash flows with real estate investing: pre-tax and after-tax. A pre-tax positive cash flow occurs when income received is greater than expenses incurred. This sort of situation is difficult to find, but they are usually a strong and safe investment. An after-tax positive cash flow may have expenses that outweigh collected income, but various tax breaks allow for a positive cash flow. This is more common, but it is generally not as strong or safe as a pre-tax positive cash flow.

Regardless of what kind of real estate you choose to invest in, timely collections from your tenants is absolutely necessary. A positive cash flow — whether it be pre-tax or after-tax — requires rental income. Be sure to find quality tenants; a thorough credit and employment check is probably a good idea.

Use Leverage while real estate investing.

One of the most important factors in determining a solid real estate investing plan is the amount of equity you are purchasing. Equity is the difference between the actual worth of the property and the balanced owed on the mortgage.

Benefit from Growing Equity with real estate investing

While real estate investing  is relatively complex, it is often worth the extra work. When compared to other financial investments, like bonds or CD’s, the return on real estate investing purchases can often be greater.

The key to real estate investing is equity. Determine an amount of equity that you want to achieve. When you reach your goal, it’s time to sell or refinance. Determining the proper amount of equity may require the assistance of a real estate professional.

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A few points about interest rates.

Less is more when it comes to interest rates.

If you’re new to investing or real estate and don’t know the first  thing about interest rates, here’s a good tip: the higher the interest  rate, the more expensive it’s going to be. High interest rates mean
you will have to pay back more on the money you borrow. Another good  rule of thumb is that affordability increases if you use an adjustable rate mortgage (it’s easier to qualify this way). Of  course, there will be a wide range of prices that you can choose  from, depending on what kind of financing you choose..

Not even the Fed knows for sure what they will do with interest rates.

The Fed holds a considerable amount of power, but they can’t control  everything. Mortgage interest rates are affected by many unpredictable  political, economic and social events. So there is no guarantee what  direction interest rates will go, despite the forecasts of the  experts. Therefore, make your financial decision based on where  things are today including your budget, your needs and your future plans.

Locking in interest rates assures your lowest interest

If you do decide you want to lock in at a certain interest rate, you  will need to complete a loan application and send it to your lender as  soon as possible. This must be done so that your commitment doesn’t  runout before your loan is approved. Follow up and be se sure that  the lender is receiving all of the necessary documentation. Get a  property appraisal, which usually costs about $300, through your loan  agent as soon as possible.

Don’t obsess and miss a good real estate deal because of fluctuating interest rates.

Although rising interest rates can create more problems for home  buyers, waiting and hoping for low rates is not necessarily a smart  move. You may end up paying a higher price. Also, refinancing is  always an option in the event that interest rates come down.

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