| Things To Consider When Picking Out A New Home Part 3

When You Are Ready To Seal The Deal

When you find a property that you want to buy there are some important things to remember:

If you have a real estate agent that you are working with you must conduct all of your negotiations through that agent. Do not go to the homeowner separately and try to strike a deal.

If you attend an auction be aware that all purchases are final. You will not be allowed to negotiate the contractual terms or have building inspections done after your bid is accepted. You must have everything done before you place your bid. Once your bid is accepted it is too late to do these things.

Always get a building inspection and pest inspection done before you buy a new property. It may seem like just another added expense to pay but you will find that it is well worth the time and money to have these done. Knowing what you are getting into before you make a deal by having these inspections done can save you thousands of dollar and a lot of headaches in the future. If you know that the house that you are interested in purchasing has problems you may not want to buy it after all. Or you may be able to negotiate a much lower purchase price as a result.

Get pre-approved for your loan before you start looking at houses. This will save you a lot of time and energy in the long run and will help you to determine how much house you can afford. That way you will not be looking at homes that are not within your reach financially and you will know how much money you need to have saved for a down payment.

Decide what type of financing you want to get, whether fixed, variable or a combination of both.

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{ 2 comments… read them below or add one }

Jazz Salinger July 19, 2010 at 5:21 pm: Hi Sean,

This is very sound advice. It really makes sense to have the property completely checked over by the professionals before you sign any deal. You’d never buy a second hand car without having it checked by your mechanic for any hidden problems. (Maybe you would, but I barely know one end of my car from the other.)

I always think it’s better to deal with the experts unless you have some training in that area and feel competent enough to handle it yourself.
Jody Chambers July 25, 2010 at 9:28 pm: Being pre-approved is always a good thing to do…although subject to finance terms are good to allow an exit from the real estate deal.