Anyone who has ever bought a home will tell you, emotion plays a big role in the decision. However, if you don’t approach the home buying process logically, you could end up making some major mistakes.
Probably the biggest area most Columbia SC home buyers make mistakes with is when it comes to choosing the right mortgage.
The first thing you must do is get a good mortgage broker. There are many lenders available for a mortgage if you have decent credit, and it can be very confusing if you are going it alone. A mortgage broker has experience and connections to find you the very best rate available. The value of the home you are purchasing is only part of the cost, and even a small difference in mortgage rates can make a huge difference in savings.
Get pre-qualified for your home loan. There’s nothing worse than finding your dream house, only to realize you can’t afford it. Before you look for a house, get pre-qualified, or better yet, get pre-approved. Have all the pertinent information, such as, employment history, credit history and outstanding debts available, because your mortgage broker is going to need them. The best mortgage lender will then be able to tell you exactly how much you will qualify for.
Keep an eye on the economic market. Buying a home when the market is lean like it is now is a very smart move, if you can afford it. Home values rise and fall with the economy, so if you buy a home when the economy is low, chances are very good the home will increase in value and you’ll realize that appreciation later on.
There are many more important home buying tips, and we have them on this site. Just click the home buying tips link under our categories section to find more important home buying tips.
There are m
any reasons people invest in real estate, but the general consensus is to make money. With interest rates at record lows and the inventory of homes for sale at a record high, it is an excellent time to begin to invest in real estate.
Getting started as an investor in the housing market is not as hard as many believe, especially if a few simple guidelines are followed. Let’s take a look at the very basic strategies you’ll want to have in place before you make the commitment to invest:
Money
Successful investors in real estate will take action to get a line of credit in place. This begins with creating a working relationship with one or two loan officers at a lending institution. The loan officer will review the investor’s credit scores, analyze debt-to-income ratios, review other investments, and provide input as to the best forms of credit the investor should utilize. The line of credit will usually be in the form of a mortgage.
Depending on whether or not the investor is purchasing the property as a primary residence or as a simple investment, the interest rate will vary. Usually if the property is being purchased as an investment and not a primary residence, the lender will require a larger down payment, especially if this is a first investment property. The interest rate will also typically be at least one percentage point higher when borrowing funds for an investment property versus an owner occupied property.
Agent
Successful home investors develop a strong working relationship with a trusted real estate agent. The agent provides information on real estate trends, fair market value of properties, leads on properties that are good deals, and up-to-date lists of HUD homes and foreclosures.
A real estate broker will prepare and handle all of the paperwork, contracts, and disclosures. He or she will also manage communication between all the parties involved in the transaction. The real estate agent’s role is invaluable to the successful home investor. To get started, interview several real estate agents to discover the one, or two, who will best provide information and assistance. As a buyer’s agent, the commission is usually always paid by the seller, so it does not cost the investor any more to use a buyer’s agent.
Location
Choosing the right location to purchase is critical, especially if reselling or renting the property after purchasing. Look out for locations that don’t suit your use of the property. If you’re buying a house to rent to a family, beware of run down neighborhoods, construction sites, busy streets, proximity to industrial properties, and general undesirable atmospheres. However, if you’re looking to get in on the redevelopment of an abandoned area or building, then by all means do your homework and buy in before prices rise once the rejuvenation is complete.
This is where a real estate agent comes in handy again. A good real estate agent knows what’s happening in their town. If there is a group of small houses for sale in the proximity of a school, your agent will know this ‘hot spot.’ If there are apartment buildings being sold now as condos, your agent will know all about it. Don’t look at a house for sale without considering the surroundings very carefully. That location translates into dollars for the investor.
Repairs
When investing in real estate, be crystal-clear as to the cost of any and all repairs and necessary remodels to be conducted on the home being purchased. And, don’t forget the maintenance. Investors are usually great at costing-out the upfront expenses, like repairs, but can sometimes be short-sighted when it comes to the long haul drain of routine maintenance. The uninformed investor will overlook this area, underestimating theses costs, and end up losing money instead of seeing a positive return on investment. Repairs and maintenance to consider before investing include, but are not limited to the following:
- Roof condition
- Structural condition
- Foundation condition
- Heating and air conditioning unit issues
- Plumbing issues
- Grounds condition and drainage issues
- Windows and doors condition
- Electrical fixtures and wiring condition
- Bathroom and kitchen fixtures condition
Successful real estate investors understand the importance of surrounding themselves with professional people who understand the business of real estate. This ensures they will receive excellent advice. Don’t go it alone when investing in real estate, whether it’s your first time or your hundredth time. Start right by hiring the best real estate professionals, and enjoy a profitable investment.
Are your family and friends always telling you that now is the perfect time for you to invest in Columbia SC real estate?
Maybe you’ve already considered the benefits of home ownership. The decision you make regarding buying your first home can be risky, for sure, but if you’ll follow these simple tips, your nervousness about the first time home buying process may be eased just a bit.
1. Define Your Search Parameters
You can begin the home search process using the Internet. Most interested home buyers actually use the Internet first before they contact a real estate agent when looking for homes simply because it is quicker and more accessible. You can even search for homes for sale using our site, but after making a quick search, you will be able to find real estate that might be of interest to you. There are lots of homes for sale in the MLS that includes homes for sale which are viewable through pictures, virtual tours and aerial photographs of the neighborhood. If you have limited budget, it is also easier for you to sort these homes depending on the price range you can afford.
2. Home For Sale Visits
Visiting 20 to 30 homes per day is not advisable. You should limit your visits to six to seven per day. You may not be able to make the most out of home viewing when you force yourself to see too many houses in a day. You may not be able to remember the significant details in each property you go into and that might not help when you start picking the right home for you. Make sure you eat enough food before viewing homes so your brain will work well during the process. It’s hard to concentrate on things when you’re hungry, and this is too big of a financial purchase to make the wrong decision because you weren’t thinking clearly.
3. Neighborhood Observation
Looking at a particular property in and of itself is not enough when you’re buying a home. You should also check the location of the property and the neighborhood to make sure you will be getting a good deal for the house. Is the location near the important establishments in the community? Do you need your house to be near schools or your workplace? How about the traffic in the neighborhood? Location is a very significant factor that sets the market value and demand of the house. If you have plans to sell the house in the future, make sure it has good resale value.
4. Working With an Agent
You have the option to either buy a house with or without the help of a real estate agent. If you think you already have the skills and knowledge required to successfully buy a property, then you can choose not to get an agent. But for first time home buyers, it is very advisable to have an agent assisting and guiding you throughout the process.
These are just a few of the “getting started” tips for first time home buyers. We encourage you to do more homework by browsing this site and looking for more home buying tips.
We’d be happy to assist you with answers to any questions you may have. Just use the comment link below to contact us.
Open houses are a great opportunity for both the buyer and the seller. It gives the seller the chance to showcase their home and the buyer can view the home in all its glory. Buyers love to scope out potential homes. After all, open houses are really sales presentations. In order to have a successful open house, there are some tasks that should be completed by the seller beforehand.
The most obvious task is cleaning. The house should be spotless, including appliances. If you work full time and don’t have time to get the house cleaned properly, hire a house cleaning service. The money spent is well worth it if you are able to sell quickly. It might be hard to keep it clean if you are still living there, but you must make a concentrated effort to try. Your home presentation must be impeccable.
Keep foul and mysterious odors away. The first thing a potential buyer will notice is an offensive odor and you will probably never see them again. Regularly inspect your home for potential odor sources and keep a steady supply of candles and air fresheners on hand. If you have an indoor cat, keep the litter box out of sight and scooped out daily.
Clutter is a major turnoff to potential buyers. It just isn’t very enticing to see piles of clutter everywhere. Keep small appliances stored instead of out on the countertops. Remove photographs and knick-knacks. You want people to envision their belongings in the house. Clean out and organize the closets. If there is no reason for something to be displayed, get rid of it.
If you can, remove non-essential furniture to make the rooms appear larger. Spacious rooms are more appealing to the eyes. Keep your boxes of junk stored out of sight. It is a good idea to start figuring out what you need and what you can live without. It would be a good idea to have a garage sale before you put the house on the market. If you can’t bear to part with anything, rent a temporary storage unit.
You cannot ignore the outside of the house either. The outside presentation has a major impact on the buyer. Clean the leaves out of the drain gutter, don’t let garden hoses or other tools pile up outside. Pick them up and store them elsewhere. Make the effort to beautify the front entry. If the door handle is rusty or the whole door looks junky, get a new one. Keep the flower beds neat and free from weeds.
Look at the walls and try to put yourself in the buyers’ shoes. How would you look at the walls in someone else’s house? Is the paint chipping or is the color outdated? It would be well worth your time to give the walls a fresh coat of paint. Nothing makes a room come alive more than a fresh coat of paint. Give the rooms a little bit of a makeover with new decor that compliments the wall colors. If you have a garden, bring in some fresh flowers and put them in attractive vases.
Establish a pleasant atmosphere by baking bread or cookies. Candles add a nice touch along with background music. Classical or jazz music are both good choices. You want to convey style and elegance to your audience. First impressions go a long way.
When trying to sell your house, you should be prepared for a showing at any time. Last minute requests are very common and can turn into offers. You have the option to request 24 hours notice before a showing, but in doing so you limit your home’s exposure. Try to be as flexible as possible. Accommodating the hectic schedules of a potential buyer will make you and your home look that much better.
It is a good idea to not be present for the showing. Buyers might not feel comfortable in your presence or they might be afraid to ask a particular question for fear of offending you. If they can’t view the house fully, they will probably just move on to the next one. You don’t want that. They are supposed to fall in love with your house.