In our last installment we were talking about how it is important to look at the little things and small details when you are looking for a new home. Here is another important aspect to consider when you are buying a house.

• Be Realistic About Repairs - painting rooms and putting in new carpets or hardwood floors may seem to just be cosmetic repairs, but those expenses can add up fast. Especially if you pull out a carpet to replace it and discover that the sub floor underneath is rotted out and needs to be replaced. The expenses for doing simple cosmetic work can add up fast so don’t underestimate the cost of doing those types of things. Always estimate high and expect to have problems, that way you won’t be overwhelmed if something goes wrong and you will have the money to deal with any unexpected situations.

Don’t Be Afraid To Negotiate The Price

Many people are afraid of haggling the price of a home, but it never hurts to ask, especially in a buyers market. Try to negotiate the best possible deal on your new home. It is often good to know how long a house has been for sale. Typically the longer a property has been on the market the more likely the seller will be to negotiate with you. But this is not always the case. Try to get as much information as you can about the house and offer what you think is fair and reasonable for the home. If there are a lot of repairs that need to be made subtract those figures from how much the house is listed for.

In our next installment we will wrap up this series on important things to consider when purchasing a new home.

Property Options Australia
Property Options Blog © 2006 - 2009

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In the last installment we looked at putting an offer on a home and getting a counter offer. Now you have a decision to make.

What To Do When A Counter Offer Is Made

If you have been handed a counter offer to your original offer you have a couple of choices as to what you can do. You can either accept the offer and move into the next stage of purchasing your home. Or you can reject their offer and look for a different home. Or you can counter their offer and continue to negotiate until you all come to an agreeable decision.

Making An Offer Stick

Some people will look at the price of a house and offer some ridiculously low figure, well below what the seller is asking. The theory is that the lower you go the more room you will have for negotiating later. In theory this may seem like a good idea, but it can backfire on you pretty quickly. If you offer an amount that is a lot less than the asking price you risk alienating the sellers. Then they will be less likely to work with you and come to an agreeable figure.

Put Your Best Foot Forward

The best idea, if you are really interested in a home, is to make a reasonable and fair offer based on what you feel the property is worth. This will help the negotiations to move quicker and more smoothly. Also if you really like a home and want to buy it, but put in a lowball offer, there is always the chance that another buyer will come along and put in a higher offer. The seller will take the higher offer and you will lose the house.

Sean Rasmussen
Property Options Australia
Property Options Blog © 2006 - 2008

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If you are looking for a home it is important to know what the rules are. There is a lot involved with buying a home and at times it can seem overwhelming, and it can even seem discouraging and disappointing at times. In order to ensure buying success you will want to keep a few things in mind.

Real Estate Agents Act As Your Guides

In most instances real estate agents conduct all of the negotiating in regards to buying and selling property. It is not in your best interest to try to do negotiations by yourself, if an agent is involved. That means that if the person who is selling the home has enlisted the help of a real estate agent, your best bet is to go through your own real estate agent as well. This is the best way to ensure that you get fair representation. If, at any time, the seller’s real estate agent tries to go over your own real estate agent’s head and talk directly to you, immediately talk to your own agent. This is underhanded, sneaky and bordering on unethical behavior.

What To Do When The Sellers Don’t Have An Agent

Sometimes people will sell there home without the assistance of a real estate agent by doing a for sale by owner. If that is the case you can still enlist an agent to work with you and help you through the myriad of details that are involved in purchasing a home. You don’t have to get an agent if you don’t want to, but it will make your buying experience a lot easier. If you choose to go the route of not using a real estate agent, then you will need to hire a real estate lawyer to help you with paperwork and contracts.

Sean Rasmussen
Property Options Australia
Property Options Blog © 2006 - 2008

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You have done your homework and organized your finances. You know how much you can afford and your ready to start the search for your perfect dream home. Hang on though, there are just a few more things that need to be done on the financial end before you start house hunting.

Determine How Much Money Your Mortgage Repayments Will Be Each Month

On of the most important things to consider when you are budgeting and saving for a home is what your monthly repayments will be. Your monthly repayments on your mortgage should not exceed 25-30% of your total gross monthly income. Most financial institutions will check your level of debt and will not sign off on a mortgage if you are getting in over your head. Car repayments, living expenses, credit card debt and the number of your dependents will all be taken into account when determining how much you can afford for a repayment fee.

Questions To Ask Yourself When Researching Financing Options

There are many different lenders and financial institutions that you can apply to for a home loan. Lenders, mortgage brokers and other financial institutions will actually compete against each other for your business. It is a good idea to check out the website of any company that you are thinking about getting your mortgage from to see how they operate. Here are a few more things to consider:

• Ask your lender what type of loan is best for you, a fixed interest rate loan or a variable rate loan. If you are unsure as to what these terms mean make sure you get a good explanation before you make any decisions.
• Think about how the loan will affect your life. Buying a home is a long term commitment that you need to be fully prepared for.
• Ask about any other fees that will apply to your loan and ask if there are any prepayment penalties.

A good home loan should have the following characteristics:

• Inexpensive with no account keeping fees
• Extra payments should be allowed with no penalties or additional fees.
• No fees for early repayments
• It should offer a free redraw facility
• You should be able to split it between a fixed and a variable interest rate.

Sean Rasmussen
Property Options Australia
Property Options Blog © 2006 - 2008

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