Columbia SC Home Buying Tips
In depressed markets, finding foreclosures is fairly easy; just drive around in neighborhoods and look for the signs hanging from the doors. The recent housing market has made it extremely easy lately to find foreclosed houses to invest in. Advertised in the paper, on street signs and even word of mouth, houses have been popping up on everyone’s investing radar. But what happens when the market turns around? Where do you look to find foreclosures then? Let’s take a look at how to find investment foreclosures in any type of market.
Weak Markets
By far, weak markets have more foreclosures than strong markets. Many homes once offered as short sales, may end up on the foreclosure listings and eventually deeded to the banks. There are numerous reasons to wait to buy a home until it has hit the foreclosure status, namely investment capital.
Yes, there is quite a difference in the amount of money you will spend on a home that is still being short sold versus one that has already been repossessed by the bank and is now up for sale. Finding foreclosures is as easy as looking through the classifieds. Most of the time, real estate agents specialize in one type of housing. Find a couple of foreclosure listings and chances are if you look at all of the agent’s listings, you will find many more foreclosures.
Driving around is another way to find foreclosures in a weak market. Many agents or banks will openly advertise that a home is in foreclosure. The bright signs and droves of cars are a good indicator that a house is in foreclosure.
Strong Markets
Strong markets are a different beast. When there are few foreclosures, it can be a little more difficult to seek them out, but it can be done. The trick with strong markets is to get an upper hand on other foreclosure investors. This can be done by calling a listed foreclosure agent and asking about other foreclosures that are not listed yet in the MLS (Multiple Listing Service) database.
Many real estate agents will wait a couple of weeks before officially listing a foreclosure. This is so they can verify with the bank, the exact listing price they want on the property. By asking ahead of time, your agent can point out other foreclosed homes in your price range.
Bank websites are another place to look in a strong market. Many of the national banks, such as Countrywide, Bank of America, and Chase list all of their current foreclosures on their website. While these are hit or miss, because they are on a national scale, it is a good place to start.
No matter what market you are in at the present, finding foreclosures is not as difficult as you might think. With a little deductive reasoning and a bit of super sleuth work, you will be able to find the perfect house or project for your budget. Get out there and keep your eyes open for a foreclosure near you.
Of course, to protect you in the negotiation stages of foreclosures, we highly recommend you contract a real estate broker who is trained to assist in these types of specialized sales.
Buying your first home should be a wonderful experience. It’s such an important milestone in a person’s life that it just seems like everything should go smoothly. Unfortunately, that is not how it always happens. There are several things you should do in order to prepare for the ups and downs of buying your first home.
Knowing where to draw the line between a necessity and a desire is a very important key to enjoying the home buying process. You must understand the things you want, aren’t necessarily the things you need. Emotions can often times muddy the lines between the two, which can cause problems in the long run.
If you have a large dog, you probably need an outdoor space for it to romp around in. This is a necessity to you and the family, as well as the dog. You might also love to have granite slab counter tops in the kitchen, but the home with the large yard only has tile. The granite is calling to you because it looks so wonderful. In all reality, the counter tops don’t matter, they can be changed but the size of the yard can’t.
Once you have the necessities squared away, it’s time to get the budget in line. Getting prequalified for a loan will help you determine your maximum spending limit and prevent you from looking at homes which are over your budget. No need to waste time on houses you can’t afford.
Once you get a definite maximum spending limit, sit down and add up the numbers. While the bank may tell you that you can financially afford a certain price point, individual lifestyle may tell you otherwise. Do you want to pass up going out to nice dinners, vacations or buying designer clothes, or could you probably live in a less expensive property and have it all?
It might be a blow to the ego to have to spend even less than you can actually afford. But it will be so much nicer having extra cash on hand to pay for improvements and new paint or flowers. No sense giving up those fun nights out with friends or delicious dinners either.
Finding a house you love and enjoy is such a great feeling for everyone. Buying your first home is not just something that makes you feel good, it is an important milestone, big accomplishment and tremendous responsibility. Enjoy the process and keep a positive outlook, just because an offer was turned down, does not mean the next one will be.
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With the help of your real estate agent – and these tips – you can become a savvy home buyer without breaking your budget.
1. Get pre-approved for your home loan: This means, fill out a loan application and go through the process of securing financing. When you’re ready to seriously evaluate real estate, you’ll know exactly how much home you can afford. This helps to prove to a seller that your offer is sincere.
2. Explore creative financing options: During the home loan pre-approval process, ask about ways to get creative with your financing. Low down payment options, first and second mortgage combinations and first time homebuyer programs might help you afford more funding. Many lenders are now offering interest-only home mortgages; just make sure you thoroughly evaluate the terms for this type of home loan.
3. Sell your existing home first: Although selling your existing home before finding new real estate to buy can be a little nerve racking, any inconvenience will be offset by your ability to make an offer with cash in hand. Contingent purchases are not recommended when negotiating to buy a home. Having your financing in order and your bags packed will give you the advantage in a competitive market.
4. Look for vacant real estate: Perhaps a seller’s job has transferred him out of the area. Or maybe a family purchased a new home before putting their existing one on the market. In any case, a vacant home could be just the deal for a savvy home buyer, so have your real estate agent look for vacant property in your preferred neighbourhoods. Keep in mind, the longer a house stays empty, the greater your negotiating power will be.
5. Consider cosmetic fixer-uppers: If you’re handy with a paintbrush, a toolset and gardening equipment, consider buying real estate in need of cosmetic repairs. Property which lacks curb appeal needs minor handiwork or the yard overhauled could end up being the home of your dreams for a price you can afford. You just need to look beyond the needed cosmetic work to see the potential of a fixer-upper.
6. Buy a home that’s a major remodel project: If you want to live on a lake but can’t afford a home mortgage, investigate to see if there is a dilapidated cottage for sale. In time you’ll need to gut the existing home and build from the ground up or contract significant home improvements. But in the end your property value will skyrocket. And if your carpentry and other construction skills are well-developed, you can save even more and accrue “sweat equity” during your remodel by doing much of the work yourself.
7. Don’t discount bank foreclosures: One person’s loss could be your gain if you buy real estate in foreclosure. Although the search for a decent foreclosure may take a while, your real estate agent should be able to help. The U.S. Department of Housing and Urban Development can be an excellent resource for foreclosed properties. Because HUD houses are sold at market value, your best bet will be homes that need cosmetic work or even major repair.
8. Land with a manufactured home: Sometimes, to buy a home on a budget, you need to look beyond conventional homes. Even if your desire is to buy real estate, you may have to settle for a piece of property in an outlying area with a mobile or manufactured home. Discuss this option with your real estate agent and try to keep an open mind about this possibility.
9. An older, smaller home: Older homes are typically priced much less than newer construction and don’t tend to create buyer bidding wars. If you can enjoy life in an older and smaller home in a neighborhood or suburb off the beaten path, this could be your ticket to real estate ownership.
10. The cheapest house in the best neighborhood: You have your heart set on a specific – and expensive – neighborhood. Maybe it’s the schools you’re interested in. Or perhaps it’s the close proximity to downtown or the waterfront. In any case, a budget-savvy buyer will look for the least expensive home for sale in the neighborhood. If you’re not in a hurry, you can even play the waiting game to see what properties come on the market. Your real estate agent can be a real asset in this case by investigating potential sellers.
Buying real estate without breaking your budget will require research and compromise. On moving day, however, you’ll have the satisfaction of knowing your homework paid off!
Buying the right house at the right price with the right loan isn’t simple. But it’s easier if you have the right team.
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