8 Questions You Need to Ask When Buying a Brand New Home

Buying your first home is always an exciting time. You’re finally realizing one of your lifelong dreams because you’re buying a brand new home. It is important to remember that everything is not perfect and there are things that you need to be aware of. In order to protect your interests and set the right kind of expectations, you need to ask questions. Here are 8 questions you need to ask when buying a brand new home. 

Question # 1: What were your past projects? 

You should ask this question to get a look at the quality of your home builder’s past projects. Their past projects will give you an idea of the quality of your brand new home.  

Question # 2: When will my home be finished? 

Asking this question lets you know when you can expect the project to be completed. Knowing this ahead of time, lets you make the necessary preparations with regards to your finances and make the arrangements with your landlord if you’re currently renting. 

Question # 3: When can we actually move-in? 

When a home is finished, you cannot move-in right away. Knowing the expected dates of completion and when you can actually move in are very important as it helps you make the right kind of preparations. 

Question # 4: What are the unit’s standard features or amenities? 

Knowing the standard features or amenities of your unit lets you budget your money wisely. You can plan ahead for the things you need to buy to complement your house’s features. For example, knowing the specific dimensions of the kitchen lets you choose the right kind of refrigerator to buy. 

Question # 5: What are the restrictions? 

What are the restrictions that you need to be aware of? These are the things or changes that you cannot do with your property. Violating these conditions can void your home’s warranty. 

Question # 6: Any warranties? 

A brand new home is bound to have some defects that will only be known when it is actually occupied. You should know what are the things you can claim as warranty to save money as you now need to balance your monthly mortgage payments with your living expenses. 

Question # 7: Any fees that are refundable? 

There are fees that you need to pay when buying a home. You should know if any of these fees are refundable to set your expectations right. 

Question # 8: Any discounts? 

You should ask these questions if there’s any chance you can save money. There’s nothing to lose and everything to gain by asking for discounts. 

Reasons You Should Not Wait to Buy a Real Estate Property

By the year 2019, the interest rates will go as high as 6%, experts say. Because of this, it is safe to assume that this year-particularly within the first two quarters- is the best time to invest in real estate.  Inventory is getting low and could shrink more. What does this mean to you as an interested buyer? It means that you should not wait to buy a real estate property. Here are the reasons why: 

  1. Rates are rising 

A flashback in the year 1981, the mortgage rates climbed as high as 18%. During this time, getting single-digit rates looked like an impossible dream. Now, the average rate fluctuates between 3.5-4%. This is expected to go over 4% at the end of this year and is expected to climb to 6% by 2019-2020.Knowing this figures, you can save a lot of money if you will buy a property this year while the interest rate is still low. 

  1. Less stock in the inventory

Try to refresh your memory about your lessons in your economics class: the law of supply and demand.  When there is less supply and the demand is high, prices will go up. If there are many supplies but less demand, prices will go down. If there is a balance between supply and demand, prices will be stable. As of this year, experts predict that the inventory will continue to shrink. This means that this year, buyers anywhere in the country will have more homes to choose from than they will next year. 

The best time to buy a house this year is during the winter. At this time, there will be a lesser number of buyers hence the competition will not be tough. You will be given more homes to choose from and at a lesser price if you will do home ownership during the off-season. 

  1. Home prices will continue to rise

Home prices continue to rise since the housing market recession in 2007. After that year, the prices continue to go higher each year. Between the years 2015 to 2016, a 5% increase in the interest was observed. In 2017, the interest rate jumped to 3% increase from the previous year. This year, the prices will continue to rise, more so next year. 

The question left now is how high will the prices go up and how long they will remain that way. This is beyond anyone’s guessing. The mortgage rate’s upward trend and some of the government’s policies will push the house prices to rise steadily. The good news is if you will buy a right now, you just might make it before it’s too late. 

5 Worst First-Time Homebuyer Mistakes

Making mistake in real estate can be very costly. Keep in mind that you are investing thousands of your hard-earned money when you buy a house. When you commit mistakes, the effect can be brutal. It can cripple your financial resources for a long time.  

Here are some common mistakes committed by first-time home buyers: 

  1. Not sticking with the budget

As much as you want to get your “dream house”, don’t stretch your budget in choosing a home and for renovation. Once your loan is approved, check what your maximum loan limit is. Only shop for houses that the bank says you can afford not on what you think you can afford. Once you identify your budget, list all your monthly expenses such as rent, gas, groceries, credit cards, health insurance, among others. Make sure that these expenses plus your monthly mortgage payment can be covered by your income without any problem. 

  1. Home shopping before mortgage approval

Getting too excited to find your first home is understandable. However, not waiting until you get approved for your mortgage is a cardinal sin in real estate. A loan is like a pre-requisite by most sellers. They will be looking for your loan approval letter as a proof of your financial capacity to pay them.  You will be wasting your time and the seller’s time if you start looking for a house without getting pre-approved first. 

  1. Missing-out the hidden cost

The price of the houses for sale in Washington DC is not the only expense that you need to be concerned about. You also need to factor-in overhead for paying property taxes, home insurance, and home repairs. If you are buying a condo, compute how much you need to pay for homeowner’s association fees, parking fee, and other maintenance fees. 

  1. Letting the emotion get in the way

You want to buy the house that you’ve been dreaming of since you’re a kid. But the problem is that houses that are in stock are not 100% the house that you want. Some buyers don’t know how to compromise and they keep on chasing for what they really want. This is risky because you might miss out a good catch because you are still searching for your “dream house””. 

  1. Not thinking about the future

If you will be moving into another state, do yourself a favor by not buying a house yet. Consider renting first if you don’t have any plan to stay in your house for long. Think about the purpose of owning a house and visualize what will happen to it ten years after.   

Helping People Buy or Sell Real Estate Properties

A lot of Real Estate professionals rarely make it to the top. Many of them fail or quit within the first few months. It’s because they failed to develop a proper business model in guiding or helping people manage their Real Estate investments. 

It all starts with having a solid marketing plan or strategy for your services. 

If you want to make it to the top, you must have the initiative to market your services on a consistent basis to let people know what you can offer. It should help your business grow and along the way, you’ll learn or discover new ways on how to advertise your services properly and efficiently.  

You should have a clear picture of how much you spend on your marketing or advertising efforts versus the revenue you get in return. I found out that those who spend a lot generally tell me that they don’t get a lot of inquiries or generate new leads for their business. They are actually spending more money than what they are making from advertising their services. 

In this post, you will learn the tricks or the most effective methods in advertising my Real Estate services. 

Track Record 

People will first take a look at your track record. Your prospective clients will also do their part and choose to work with an agent who they’ll think can give them the help they need with. If you have established that people can trust you based on your track record, you will certainly get more inquiries from people looking for help.  Highlight your track record to get noticed. 

Specialized knowledge 

There are areas that I specialize in. I help my clients deal with foreclosed or distressed properties. I give them information from which they can rely on to make informed choices. They can buy those properties at such low prices. This allows them to make the necessary repairs that will only serve to add more value and flip them later on and make big profits.  

Specific Location 

There’s a certain part in our country that I am very familiar with. I use my familiarity with State laws to my advantage. I think you know that each State is governed by separate laws. By hiring my services, you can leverage on my strengths and familiarity for a specific location. The location where I do business.  

This kind of advertising or marketing strategy has sustained my business. It has generated enough leads for me that I have a steady supply of 2 or 3 clients a month and a 100 percent success rate. All the clients that sign up with me can expect to get results fast. 

 

Steps to Find A Right Real Estate Agent

In this day and age, we are constantly bombarded with stories of unscrupulous people who take advantage of the people who trusted them. It is easy for the average person to consider not trusting anyone outside of their friends and family but this isn’t always possible. When you sell your home, you will need to find a trustworthy realtor. This person will have the keys to your home and access to all the belongings and items in your home. Your realtor will also know other personal information about you including your credit rating and other important financial information. Of course most people would agree that finding such a realtor is important. But how exactly do you do that? There are some steps to take that can help you find someone who is trustworthy and good at selling real estate as well. In other words, you don’t have to compromise in order to find a trustworthy realtor.

Talk to friends, family and neighbors who have sold their homes. Not only can you find out a lot of information this way, but you can almost guarantee that people you know will give you their honest opinions. If a certain realtor has a negative reputation, find out why. Is this realtor very aggressive or is he just rude? Was the client unhappy because of a personality clash or was it something more serious?

Think about additional traits that you want in a realtor. If you are in a hurry to move, you may want to find a realtor that is known for closing fast on homes. Of course, in your hurry to sell your home, don’t forget about finding a realtor who is trustworthy. Choose a realtor who is a team player. Trustworthy realtors tend to be very client focused and will view you as an important part of the team. A good realtor will ask you questions and will value your opinion.

Don’t be too quick to trust Internet reports. It can be very difficult to judge if an Internet evaluation is accurate or not. The reality is that every realtor has had one or two clients that were very difficult to please. Therefore, an occasional bad review on the Internet shouldn’t upset you too much. If the majority of the reviews that a realtor has are negative, you may want to seriously consider using another realtor. Likewise, use caution if you find a realtor with only positive reviews as not all of the reviews may be accurate.

Interview prospective realtors yourself. After you narrow down your choices, you may actually want to call or make an appointment to talk to several different realtors. Then, you can make an intelligent choice about which realtor will work best with you given your unique situation. You will be able to gather a lot of information during the interview including information about past experience, a realtors personal ethics, as well as any professional organizations which the realtor has joined. All of this information is very important and will help you to make a good choice. If you follow these steps, you will significantly increase your chances of finding a trustworthy realtor.

Understanding Real Estate

Buying a home takes time so it’s important to be prepared. Don’t worry, your lender and agent will help you along the way. If financing a home it can take 2 months or more. There are many stages or steps involved. Finding a lender, then going shopping, making the offer, setting up inspections, getting insurance, working with a title company, and the final step Closing the deal. If you are looking to buy a home in the next 6 months to a year and you are going to be financing the time to start preparing is now. Again, don’t worry your lender and agent are going to help you.

Finding a Lender-The first step to starting the process of home buying is to contact a lender to determine how much money you will have to spend or how much you can afford. There is no point shopping for a home if you cannot buy one. It wouldn’t be wise to look at homes over $300,000 if your lender will only loan you $175,000. It would be very disappointing to find the home of your dreams and then find out you cannot get it. So start with finding out what you will be able to finance and then you can go shopping for homes in that price range. Not all lenders are the same. Find one that is going to be helpful and informative to you. Your lender should provide you with information on what you are eligible for and if you are not eligible he should be able to tell you what you need to do to become eligible. If you need help with locating a good lender you can also ask your real estate agent if they have a few preferred lenders they can recommend.

How much down payment do you need? Not all mortgages require a lot of money down. Be sure to ask your lender what your options are. If you are a first time buyer be sure to let them know. Some lenders offer special loans for first time home buyers and some do not. The state of Florida offers many down payment assistance resources. You will want to see what is available to you in your state. If you are eligible for a VA loan you will not need any money down. That’s right No Money down.

Poor Credit Score-You can qualify for a mortgage with a credit score as low as 580 so don’t let your credit score deter you. If your credit score is below the criteria needed for the mortgage that is right for you then your lender can sometimes view the report and determine if there are things on the report that they can have removed to increase your score or give you tips on what you can do to improve it. This can take time so if you want to purchase a home you need to give yourself time to work through these steps. You will need patience and perseverance but a home is worth it.

Getting a Real Estate Agent-There are two types of real estate agents. A listing agent- one who specializes in listing homes for sale and A buyers agent- one who helps buyers in the process of purchasing a home. It’s important to note that both listing agents and buyers agents get paid by the Seller.Your agent can and or should be able to assist you throughout the entire process. They can help you with finding a lender, shopping for the home, writing and submitting the offer to purchase contract, scheduling and providing you with necessary information on what inspections are needed or that you may want, working with the title company so that you obtain a title that is free and clear of liens, working with the lender so the lender has the information they need etc. They do a lot of work for you and it’s important that you are loyal to them. Work with one agent. Whenever you have a question call your agent.