3 Buying Tips for 2014

RANCHO SANTA MARGARITA, CA, Mar 11, 2014—As the market makes steady moves toward a solid recovery, more and more hopeful homeowners are entering the playing field. If you're looking to buy a new home this year, be it a downsize, vacation home, or your very first house purchase, follow these three tips, offered by Russell Taylor, REALTOR® at CENTURY 21 Award.

Check into reality

Image via Freedigitalphotos.net

Instead of daydreaming your ideal home, make a list of what things are absolutely essential: a specific number of bedrooms, close proximity to work or your child's school, or a decent-sized yard. Also ask yourself if you’re you prepared to do any necessary upgrading or updating work yourself or if you prefer a move-in ready home. “Once you know what you need, but before you begin your actual house hunt, start looking at what sold in the last six months that fits your bill,” says Taylor. See what the selling prices are looking like, and figure out if you can afford a similar price tag. If you can't, it might mean waiting a bit, or reassessing your needs.

Get pre-approved, not pre-qualified

Many people get confused between “pre-approved” and “pre-qualified” when it comes to obtaining a loan. “Getting pre-qualified means a bank has qualified you for a mortgage based on information you provided, but they have not actually checked up on your credentials,” says Taylor. However, a letter of pre-approval means the bank has thoroughly checked out your financial status, and is ready to give you a loan. “This holds more weight in terms of buying quickly, and can act as leverage should it come to beating out other buyers. “In fact, many sellers will simply not consider your offer at all without a pre-approval letter from a reputable lender,” explains Taylor.

Don't lowball

“When it was a buyer's market, lowballing was often a good way to start negotiating price,” notes Taylor. However, now that we're seeing inventory shortages across the country and more and more buyers entering the fold, lowballing most likely means you won't land a deal. The days of “getting a steal” are over, but a good deal is still out there and that should be your objective. Present a fair offer that's in your price range but still leaves some negotiation room on both ends.

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For more information on buying a home, please contact Russell Taylor at RTaylor@FineOCHomes.com, (949) 584-7289, or FineOCHomes.com

For more real estate information, please contact CENTURY 21 Award at info@century21award.com, (800) 293-1675, or CENTURY 21 Award.