More Real Estate TRAPS the
First Time Home Buyer Could Fall Into!
REinfo4me.com
Check, and double check EVERYTHING on your
real estate paperwork, especially if you are a first time home buyer!
As a first time home buyer, you must have watched those late night TV ads: "How to buy foreclosures at rock bottom prices", "How to buy a home with no money down" etc., etc.Usually these people are just trying to get you to buy their seminar or tapes.
If it was so profitable and easy to make vast amounts of money manipulating real estate, then why are they not spending their time doing it instead of making TV commercials to relieve suckers of their hard earned $300 to $400.
Yes, you CAN buy with no money down, it's called 100% financing! Contrary to popular belief, not all sellers are willing to negotiate!
However, there are some gems of truth in these real estate commercials, and if you'd like to check out some genuine offers, click below.
FORECLOSURES and FLIPS MANUAL
Find Ugly Homes and Assign the Contracts
The Millionaire Mind
BEFORE you make an offer on any real estate, sit down with your real estate agent and have them run comps (comparable sales) on the house you are interested in.
Although not an appraisal, this will give you a good idea of what the house should sell for.As a first time home buyer, your agent should be guiding you carefully at this point. There are several other factors to take into consideration. What condition is the home in? Does the seller offer a home warranty?
How much will it take to bring it up to the standard of the comps? How long has it been on the market? Are there multiple offers? Are the sellers offering any incentives? Does the seller have any contingencies like finding somewhere to move into? Have the sellers already bought or are under contract for another house?
What does your agent think would be a good bid on the real estate? You, of course, have the final say on what price and terms you offer but decide wisely, weighing all the factors involved.
At this point, you will have to write a check for your earnest money deposit, usually around 2% to 3% of the offering price. DO NOT MAKE THIS OUT TO THE SELLER! The safest thing to do is make out the check to the Escrow Company or the Title Company who will be handling your deal.
BE VERY SURE THIS IS WHAT YOU WANT!
If the seller should accept your offer as written, then the offer becomes a Binding Contract. The seller may decide to counter offer some of the terms and conditions, or just simply the price of your bid.
If this is the case, then the ball is back in your court. If you accept the counter offer as written, again you have a Binding Contract. It is not unusual for there to be one or two counter offers flying around.
Don't sweat the small stuff or you will have the seller become concerned about what things will be like during the escrow period.
DO NOT get directly involved in the negotiations yourself. This is another reason to have an RealtorŪ who is experienced in working as a first time home buyer agent represent you. It takes the personalities of you and the seller out of the picture. I have seen too many cases where personalities got involved and the deal, painstakingly worked out, goes down the drain.
Sometimes the seller will feel insulted by your offer being too low.
Remember this has been his home for years and he has put his own blood, sweat and tears into it.
His decorating may have been done by his wife, so don't criticize.
There are better ways to convey this and your agent will know how to present it.
They are there negotiating hard on your behalf!
|
