20 Tips for Getting A Good Deal on Used Property
Selling or buying used property is a great way to save money. But it’s also fraught with danger if you don’t know the tricks of the trade. Here are 10 tips that can help you get a better deal, whether you’re buying or selling.
- Know What You Want Before You Go Looking For It
It takes time and effort to find the right property; why start your search at random? Do some research in advance about neighborhoods where you might like to live. Then narrow down your choices based on what you’ve learned. This will save you from wasting time going to look at properties you won’t be interested in.
- Get Pre-Approved For Financing
If you are seriously considering making an offer, have a lender check out your financial situation first. A loan officer will tell you how much you can borrow and when you’ll need to pay it back. Getting pre-approved gives you the upper hand against other buyers who aren’t ready and willing to make an offer. It also lets you know how much to offer, so you don’t overpay.
- Don’t Let Yourself Get Pressured Into Acting Quickly
Buying and selling real estate is often a big decision. There are many things to consider, such as school districts, crime rates, commute times, noise levels, shopping opportunities, etc., and these factors can change significantly in just one or two years. So take your time and make sure you’re comfortable with the choice.
- Be Wary Of “Too Good To Be True” Properties
You wouldn’t buy a used car without taking it for a test drive first. Why would you expect any different when buying a house? The last thing you should do is sign a contract sight unseen. Take plenty of time to visit the property and check it out thoroughly before you commit to it.
- Watch Out For Hidden Defects
A home inspection can give you peace of mind by checking the condition of the property and identifying any potential problems. But it isn’t foolproof. Problems can still arise after the inspection has been done. For example, the inspector may miss something because he didn’t use a certain tool or was unable to access some areas. That’s why it’s important to do your own walkthrough, too.
- Research Comparable Sales
By comparing prices of similar properties that have recently sold nearby, you can determine how much to offer. You can then use this information to negotiate a better deal.
- Ask For A Warranty
Some sellers may agree to put their home on the market with the understanding that they’ll repair any issues they discover during the home inspection process. This could be a good way to get them to lower the price. If the seller doesn’t want to give you a written guarantee, ask him to promise to fix anything discovered during your home inspection.
- Make Sure You Understand The Terms Of The Sale
When buying a property, read the sales agreement carefully before signing it. To avoid having unpleasant surprises later, make sure you understand the term “as is.” This means the seller will not make repairs. You may decide to accept this, but it’s best to talk to an attorney before you sign the paperwork.
- Find Out What The Owner Owes On The Mortgage
The amount owed on the property is called the lien (pronounced LAYN). This is a lien on the deed, which is a document showing proof of ownership. If the amount owed exceeds the value of the property, there may not be enough equity to cover the difference. In that case, the bank holding the mortgage may foreclose instead of allowing you to purchase the property.
- Ask For The Seller’s Disclosure Statement
This form, required by law, lists any known defects in the property. It also provides information about the condition of the roof, plumbing, heating and cooling systems, electrical system, and more. Read it carefully. If you find something that concerns you, don’t sign the contract until you’ve talked to an expert.
- Check The Title History
Your attorney will order a title search, which will show whether the seller owns all the rights to the property. He’ll also check to see if there are any liens or judgments against the seller. These documents can cause problems down the road.
- Have A Professional Inspect The Property
There are many things a knowledgeable inspector will look for. He’ll check for water leaks, pest infestations, structural damage, and safety issues. Your inspector will also recommend repairs and maintenance that may be needed.
- Don’t Trust Your Own Judgment
Do you really know everything about the property? Probably not. So don’t try to assess its condition, especially since you may be emotionally connected to it. Let someone else, such as a real estate agent or a contractor, give you impartial advice.
- Go Over The Purchase Agreement
Read the contract very carefully and make sure you understand every word. If you find anything confusing, don’t hesitate to ask your lawyer or real estate broker to explain it in detail.
- Consider Contingencies
Contingencies are conditions that must be met before you can close. They usually involve financing, inspections, appraisals, and other things that need to be completed before the sale can go through.
- Get A Home Inspection
If you don’t have one already, hire a home inspector before submitting your offer. A thorough inspection can reveal any problems with the house, so that you can resolve them before you make the purchase. If you have a home inspection clause in your contract, the seller is obligated to fix any problems identified by the inspector.
- Think About Closing Costs
These fees are charged by the lender or settlement company and include the origination fee, points, title insurance, recording fees and others. Expect to pay between 2 percent and 4 percent of the final sale price.
- Know Your Credit Rating
Your credit score affects the interest rate you receive from lenders. If it’s low, you might be offered a higher-than-average interest rate, which could cost you thousands of dollars over the life of the loan. Fixing your credit could save you money.
- Prepare For The Closing
The day of closing can be nerve-racking, but it doesn’t have to be. Here’s what you should do:
- Be at the attorney’s office early.
- Bring your identification.
- Sign the documents.
20. Complete The Transaction
After signing the papers and paying any closing costs, you’re now the official owner of the property. Congratulations!
Final Words
Buying a home is often the largest investment you’ll ever make. But it can be stressful too. For help finding the right home, contact me today. W eat Shaariq would love to help you find the perfect place to call home.
