Real Estate Buying Tips First Time Buyers Don’t Usually Hear

If you’re beginning to think about buying Long Island real estate for the first time, you’ve probably realized that there’s a lot you don’t know about the loan process, home values, down payments, and mortgage insurance. Here are four little-known tips for first time homebuyers that may make the process easier and less stressful.

1. Make sure you have enough money to cover closing costs. The closing is the actual purchase of the real estate, the day that it becomes yours. The money you’ll need to have in order to cover closing costs is more than just the down payment. It also includes title insurance, attorney’s fees, recording fees, the pro-rated taxes for the year, and everything that goes into escrow if you decided to use it, including around 15 months of your homeowner’s insurance, around seven months of your taxes, and your mortgage insurance premium if you put down less than 20%.

2. Pre-qualify for a loan before you start looking at houses. Sitting down and talking with a mortgage broker before you step foot in any real estate on the market will give you a realistic idea of how much house you can afford. Remember, you’re paying homeowner’s insurance, taxes, and sometimes other costs on top of your principle and interest every month. The broker will be able to give you an idea as to how much your interest rate will be and can show you different purchasing scenarios.

3. Putting more money down than is required by your loan is never a bad idea. If you’re looking to put less than 20% down, you’ll have to pay mortgage insurance every month, which is calculated by taking a percentage on what you still owe on the loan. This is money that you pay that you won’t get back in investment value. In fact, you can’t remove this cost until you owe less than 80% of the selling price of the house. The more you can put towards this number, the more money you’ll save in the long run.

4. Real estate investments aren’t recession proof. As many people learned during the recent housing bust, home prices aren’t guaranteed to go up. In fact, it’s possible that they can fall so much that buyers can wind up owing more than their “investments” are worth. Predicting future value is really difficult because it depends so much on human whims. However, if you’re looking for the stability of owning your own piece of property, and you’re emotionally and financially ready, it’s the right time to buy for you.

Purchasing real estate is part of the American dream, and it’s a goal held by many people. We’ve all heard advice about buying when the market is low, looking in neighborhoods with good schools, reading carefully through the inspection reports, and making sure you completely understand all the loan documents. However, these four tips are advice that many newcomers aren’t given.

Are You Really Equipped to Get the Best Price Selling Your Property?

Let’s face it selling a property is a big deal and getting this right or wrong can have significant financial ramifications.

The answer to the question of whether to seek independent professional advice selling your property is to ask yourself a simple question “how much experience have you had in dealing with real estate agents, what success have you achieved in getting the best price for your property sales.

If you have only sold a property a couple of times before or you are too busy to manage the process your answer is simple, engage an independent property professional to work for you.

Today is the day of the specialist whilst you may have had success buying the property at the low point in the circle, don’t think that this success empowers you or provides the best tools to maximise your sales results.

In the current market conditions you need to be on top of your game you need to ensure you have everything right, the right agent, the right sales method, and the right presentation for your property, the right marketing campaign, at the right time.

Do you know what you should invest into your marketing budget, and where the budget should be best allocated? Do you know how much commission is right to pay the agent and what the best method of selling your property is? Do you market at a specific price or range or not at all?

There are a number of potential options for selling a property including an open agency, a sole agency, an exclusive agency. What is the best sales approach, should it be via an auction or would an expression of interest campaign be better suited, or is a private sale going to achieve the best result for your property?

Possibly the most important considerations in maximizing properties return is to know what, where and how many dollars if any at all you need to spend on improving the property. Some properties are best left alone while others benefit significantly with appropriate improvements. Some commercial properties are better with long term lease arrangements while others may benefit from been presented as vacant possession.

Have you completed a genuine market comparative analysis so you really do know what a realistic price for your property is?

Many new vendors make the dreadful mistake of listing their property at a ridiculously inflated price. The bottom line is that buyers aren’t stupid, they are about to spend a significant amount of their personal dollars or take on a considerable mortgage so if anyone knows the market value of what they are looking for it is the buyers themselves.

Vendors fall into this trap due to a number of reasons, from been seduced by an eager young or desperate real estate agent trying to get the business, telling you exactly what you want to hear. Or you simply have an outdated market perception or a false reality as to the value of your very special property.

This is so important as the last thing you want to happen is for a property to go stale. As not only do the buyers switch off but also the agents start to put it in the back drawer as they haven’t got time to waste with unrealistic vendors. Over pricing is a no win position for all.

As you can see there are several important considerations you need to get clear on. Therefore it does make good sense to appoint an independent advisor as they could significantly improve both your sales price and the time it takes to obtain a sale.

This service we have identified as a necessary and important service for clients, we have found even experienced property investors can benefit tremendously. It could just be in the case where one has a lack of time to fully explore the options or a lack of knowledge in the marketing and sales process of property.

Having an independent advisor negotiating with a real estate agent on your behalf, who fully understands the sales process and providing quality advice on the best steps you could take to fully maximize a property’s value and presentation, takes all the guesswork out of it.

Why risk possibly your largest assets returns.

If property is an area you would like to explore we invite you to spend a little time for more information click here