Be moderate in your approach when considering a purchase of real estate negotiations.Many people get too aggressive so that they can get a great deal, but this doesn’t always work in their favor. Be clear about what you want, however, let your Realtor and lawyer go at the negotiations since they are used to fighting those battles.

If you’re thinking about relocating, do some research on the internet about different communities and neighborhoods. You can discover a great deal of information about even the smallest town. Consider the population, population and unemployment rate of your desired location before purchasing a house there so you ensure that you will love where you live.

When you are planning to purchase a large and costly commercial property, look for a partner who you can trust.

If you made the seller an offer that was rejected, do not completely give up on the fact that they won’t find a method of making the purchase price affordable for you. They might offer to cover the price of the closing costs or necessary repairs to the home before you move in.

Keep an open mind about what elements are the most critical while searching for Phuket real estate for sale. You might not have the financial resources to buy your dream house in your dream neighborhood, but you may be able to afford one or the other. If you can’t find the perfect home in the correct area, modify your search in either location or type of home.

When you want to make a good investment with real estate, consider doing remodel or repair work. You’ll experience the benefit of a fast return on investment and increase in property value rises. Sometimes your property value will rise more than the money you have invested.

You need to make sure that you fully understand how mortgages work prior to buying a new house.

You should invest in the real estate market at this time. Property values are low because of the housing market. The housing market will rebound, and it will make your investment profitable when it does.

If you want to buy a spot for a business, choose a good neighborhood. Starting up a new business in an area of high crime and dilapidated buildings will not win you many customers. Talk to a real estate professional to find out what locations are available.

When shopping for a home, ignore the decor. You should purchase a home based on it’s construction and shape. If you base your decision to buy on decor, you could pay for it later because you failed to see a large structural problem.

When interviewing agents to help you through the buying process, ask them if they live in the area. If an agent is relatively new to the area, he or she may not be as familiar with things like road conditions, neighborhood restrictions and the general community.

Take your time to carefully measure a house you thinking about buying. The difference between these two figures should be no more than 100 square feet; if it is more than that, either reconsider buying the property, or find out the reason.

Always make sure to obtain home warranty protection. When you are buying a new home from the person who built it, or from an owner, or get the seller of a pre-owned home to provide you with at least a one-year warranty. The person who builds the home needs to have the confidence in his or previous owner should offer some protection to you if anything should go wrong during a certain period of time.

Hire people you trust when purchasing a house. No one wants to go out and spend money on something that could receive for free. Even so, you will want people that you can trust to protect your interests in such an important decision.Getting to the unvarnished truth can save you enormous stress and expense in the road.

These tips are helpful for getting the basics of home buying. Make certain that you use any information here that may be useful so that you don’t run into a lot of common problems. Enjoy the shopping experiences, and your new house! Search here for Phuket real estate for sale.

Head to the Cheap Towns

You can’t find a cheap home in an expensive city, so you need to head to the cheap towns. A cheap town doesn’t have to be dull and drab; there are lots of inexpensive cities with good schools, excellent recreation activities (such as movie theaters), shop, take long walks and all while living in a house that costs less than $50,000.

Of course, it is not easy to find good jobs in such towns. In fact, the bad job situation is one of the reasons why homes in such places are cheap. If you are not looking for a job, however, then you would fit perfectly in any of the cheap towns. For example, if you have just retired or you are a home based worker, then you will have no qualms about living in cheap towns. Just give them a wide berth if you are looking for a place with a high probability of finding a high-paying job.

Look for the Intrinsically Cheap Homes

Do you know that some homes are just cheap by design? Head to the cheaper parts of your town, or look for the home designed that are not too much in demand (they tend to be cheap). The problem with setting your mind on a specific part of town, or a particular home design, is that you won’t know whether or not there are cheaper alternatives.

This advice should not be misconstrued to mean that you have to live in a dangerous part of town, or a dilapidated house, if you want to save money on your house purchase. The thing to do is to set your priorities right so that you can dispense with what you do not need. Try it and you will be surprised at the amount of money you can save.

Negotiate for a Lower Price

Negotiation is another method via which you can buy a home at a cheap price. If negotiation does not come naturally to you then you should brush up on your negotiation skills. Read on negotiation techniques, practice these skills, and you will increase your chances of negotiating for a lower price.

Most sellers deliberately set their prices a little bit higher while in reality they would take less than the quoted price, which is why individuals with sharp negotiating skills always buy cheaper houses.

Choose Your Financing Carefully 

Unless you are paying for your house on a cash basis (which is rare), the final amount paid for the house will be much higher than the stated price. This is so because you have to factor in the interest. Therefore, you can save thousands of dollars by choosing a financing term with a low interest rate. Other ways in which you can save money include avoiding mortgage insurance, saving on appraisals and avoiding or lowering loan fees.

Save Money on all the Steps

A home purchase process is comprised of different stages/steps, and each of them costs money. Therefore, you can save a lot of money (overall) by saving money on each of the steps. For example, you can opt for a walk-through inspection if you are reasonably certain the house is in a good condition. There are tips and tricks you can use to get low insurance, cheap appraisal rates or even save on the closing costs. In short, you shouldn’t just focus on a low price if you are looking for a cheap home. Visit http://davethepropertyguy.com

That’s why it is a good idea to get pre-qualified through a lender before you even start to look for a home. Pre-qualification lets a buyer know exactly how much a lender is willing to loan them. With pre-qualification in hand, the buyer can save a lot of time-and frustration.

Pre-qualification does not obligate buyers to take a loan from the lender, nor should it involve any fees (until later, when they actually apply for the loan). At the same time, you must understand that pre-qualification is not pre-approval for a loan either which is a much more involved formalized process that results in an actual letter of credit from a lending institution for a specific loan. Depending on your unique circumstances, you may wish to consider pre-approval as an option, but it is not necessary-consult with your real estate professional to decide what’s right for you.

The less formal process of pre-qualifying on the other hand is a tremendous tool for buyers to have when making an offer. Usually, pre-qualified buyers have an edge when making a purchase offer because the seller knows that the buyer is pre-qualified, and that there is at least one lender ready to make it happen. In addition, it allows you the flexibility to choose the mortgage that is best for you at the time of actual purchase-which is sometimes months down the road. That can be important given the volatility of interest rates. When a lender pre-qualifies, they are more concerned about the buyer’s paying ability than the price of the property.

For this reason, lenders are interested in more than just a buyer’s income. They also want to know how much existing debt a buyer has, what their on-going financial obligations happen to be, and what the buyer’s monthly budget looks like.

Lenders use an established debt-to-income ratio, usually between .28 to 1 and .38 to 1, to calculate the amount of the loan they are willing to give to a buyer. For instance, a lender who uses a .3 to 1 debt-to-income ratio has determined that payments toward debt reduction-including existing debt plus new debt associated with buying a home-cannot be more than 30% of they buyer’s gross monthly income.

An important factor that may influence a lender to authorize a loan with a higher debt-to-income ratio – (where debt payments take a higher percentage of a buyer’s income) – is a larger down payment. Buyers who put a larger percentage of the purchase price down (5%, 10%, 15%, 20%, etc.) are considered better “risks,” because the theory is that the more a person has actually invested in the purchase, the less likely they are to default on the loan.

Buyers usually discover that the pre-qualification process will produce a home purchase price that is roughly 2 1/2 to 3 times their gross annual income. The 2 1/2 -to-3 guideline is only a general rule of thumb, however, and it doesn’t take a buyer’s full financial situation into consideration. Since the lender’s calculations will also consider a buyer’s actual debts and ongoing expenses, the loan pre-qualification amount may be higher or lower. Regardless of the price bracket a buyer targets, they should keep pre-qualification in mind.

How much should you budget to own your own home?
Aside from the down payment, the three largest expenditures involved with the purchase of a home are usually your monthly mortgage payment, insurance and taxes. Obviously, the amount of your mortgage payment depends upon your down payment, rate of interest and the price of the property.

Take, for example, a home that has a $200,000 mortgage. An 7% fixed mortgage for 30 years, will run approximately $1330 per month. What about taxes? The rate will often times vary from city-to-city, but generally you might expect your yearly tax bill to total around 1.25% of the purchase price.That means, for a home with a market value of $250,000, yearly taxes might run around $3125. A local real estate agent can help prospective homeowners refine these figures.

In addition, it is important to keep in mind that there are many additional expenses incurred with home ownership, some of the most obvious are utilities and trash collection. Smart homeowners should also budget for one other item, maintenance and upkeep of the home. If possible, a small amount should be set aside each month to pay for those “rainy day” repairs such as painting, plumbing (hot water heaters, garbage disposals), adding storm windows (to improve energy usage), insulation (in attics), etc.

But home ownership is not just a one way street-that is, aside from spending money on repairs and maintenance, homeowners can profit from their property. The most significant benefit is the tax deduction. It is no secret that among the last real income tax deductions available to consumers today are the interest paid on the home loan, and the property taxes. This can amount to thousands of dollars in deductions each year. And, of course, the primary benefit of home ownership is appreciation-equity that builds every month. A home, aside from being a place that provides shelter, can be a profitable investment, and the rising value of the property oftentimes provides another “savings” account.

So, when it comes to buying a new home, remember one thing … the purchase of a property requires budgeting and planning.

How do you go about finding a mortgage?
The commotion of house hunting is finally over. You found just the right house, and your offer has been accepted. It was a great buy. Now, just one more hurdle-getting a loan-and you’re home free. Often, buyers are so eager to get this “final detail” behind them, they rush through this portion of the transaction, and end up with less-than-ideal terms. Borrowers, however, have something lenders want-their business. This positions them to negotiate the best possible price (cost of loan), terms and service.

Let’s look at price, or the cost of the loan. The first thing to do is find out what the current rates are, information readily available on the internet, in your newspaper or from your real estate agent. When comparing rates, figure the annual percentage rate (APR), which includes interest, extra fees and costs amortized over the life of the loan. Also determine the number of points, if any, that the lender will charge to make the loan.

(A point is equal to one percent of the loan amount.)

Next, consider what loan options the lender offers. There are six or seven basic types of loans, which vary in their duration. Check how rates are calculated (fixed versus variable), and whether charges are fully amortized over the life of the loan, or whether you’ll have to pay points up front and/or balloon payments at the end.

Is there a prepayment penalty clause?
Which terms are best for you depends on such factors as what changes you expect in your income and what you predict will happen in loan rates in the years ahead. For example, if you only plan to reside in the home for a year or two, starting with a lower Adjustable Rate Mortgage (ARM) might be the best choice. If you have no plans to move, and feel that inflation will rise rapidly, a fixed rate would obviously be better.

Finally, and perhaps most importantly, consider speed and service. Buyers shouldn’t have to wait days for approval and weeks for closing just because the lender is slow. Remember, qualified buyers are great prospects for lenders – so give your business to the lender who demonstrates they not only want it, they deserve it.

How difficult is it to qualify for a mortgage if you have a past credit problem?
Credit problems can make it harder to qualify, but it’s quite possible for buyers with poor credit to obtain a home loan.

Anyone who has had a financial problem-whether it was a matter of late credit payment, delinquent taxes, or even a judgment that was filed-should expect this data to be a factor when applying for a mortgage.

How critical a factor? Minor lapses will probably have little or no effect. However, buyers with serious problems may still qualify for a loan, but they may have to pay a higher rate of interest or provide a larger down payment. There are three steps that a person with past credit problems should take before applying for a loan.

First, request a credit profile from one of three major credit reporting agencies. To get copies of your credit report, start at: CreditNow – Credit Reports

Second, the buyer should optimize his or her credit profile by citing prompt payment of rent, utilities, and other bills not reported on the credit profiles.

Finally, the buyer should be prepared to provide comprehensive and candid explanations for any late payments to the loan officer. This is important because problems not reported by the buyer but discovered by the lender will reflect unfavorable.

Many lenders are understanding about one-time problems such as the loss of a job, a medical emergency, etc.

Buyers with patterns of delinquent payments might want to consider adding six months or a year of flawless credit to their track record before pursuing their home-buying plans. So remember-if you are thinking about purchasing a home, but are worried about your past financial record-don’t give up. There are solutions, lenders and agents who are in business to help.

What are the five most common mistakes made by first-time buyers-and how can you avoid them?
A good home-buying decision is one that fits your lifestyle and your budget-a house you’ll be able to resell when the time is right. Sound simple? Not always.

Five common mistakes frequently made by first-time buyers.
1. Looking outside your price range. To avoid disappointment, contact a real estate agent who can help you pre-qualify before you start looking for a home. The agent can also provide valuable insight on taxes and other expenses associated with a home (utility bills, etc.)
2. Buying on impulse. Buyers-especially first-timers-may be impressed by the first two or three homes they view. Look at a good selection. List the positives and negatives. Narrow the prospects to three or four, and then return for a closer look. Evaluate more than just the property. Look at the surrounding area and community amenities. Is this what you-and your family-want and need?
3. Not planning ahead. Think seriously about any personal changes you are planning in the next five to seven years.
For instance, if you are planning on having children, consider how the home will meet both your current and future needs. If a double-income is necessary to qualify for financing-and make your payments-do your plans foresee an income sufficient to continue making payments?
4. Failure to focus on location. Don’t just focus on the house, examine the neighborhood. Is the area safe, well maintained, moderately quiet and close to work, stores, and schools?
Find out about zoning and what new construction is planned on any vacant land in the immediate neighborhood.
Will the property be easy to market when you are prepared to sell it?
5. Failure to understand the home buying process. Once you select a home, get involved. Find a real estate agent willing to spend time with you, and don’t hesitate to ask questions. Have them explain the negotiation, financing and escrow processes and other elements involved in the transaction.

Home-buying involves knowing the price, and what’s inside and around the property.Consider all your options carefully. This may be the most important financial transaction of your life.

What’s the real difference between a new home and an old one?
While each offers its own style and charm, the difference usually boils down to two things:
1. How the home fits into the buyer’s lifestyle.
2. The condition of the property.

Homes that are 10 years old or less are generally better insulated – or have dual-glazed windows or thermal panes – which translate into lower heating and cooling bills. And, in today’s rising energy cost environment, these considerations are significant. Although there are some exceptions, homes that have been built with all-electric systems, generally have higher utility bills.

Homes that range between 15 and 20 years old may be in need of new water pipes, especially if the old ones were galvanized and if a water softener was used. Water softeners and galvanized pipe can be deadly and, after 15-20 years, re- plumbing is usually required. Have a plumber or general contractor inspect the pipes. Needless to say, it can be expensive to re-plumb an entire system. Check the built-in fixtures and appliances for any signs of damage.

Flush toilets, test all the water taps and the electrical sockets, open and shut the windows, and try all the lights.

A window that will not open may be a sign of a more significant problem-for example, a wall may have shifted, or worse yet, it could indicate a problem with the foundation itself. It is also a good idea to ask the seller for copies of past utility bills. Examine them for some insight into what you can expect monthly gas and electric costs to be. Although newer homes may be free of significant physical or structural problems, there are other things to consider in making your decision.

Generally, room size and yard size tend to be smaller in some newer homes. While, on the other hand, they usually offer the benefit of the latest building and design technology. Many new homes also have more windows and natural light incorporated into their design plan, allowing for a more spacious feel and efficient energy usage.

Should a buyer get a professional inspection for the home they are buying?
Definitely. Hiring a professional home inspector can save a great deal of grief for buyers. The one exception would be when the home is new and carries a written warranty by the builder. Many buyers mistakenly believe that the only reason to have a home inspection is to make sure that the house they’re buying doesn’t have defects serious enough to warrant backing out of the transaction. But there’s more to it than that.

Certainly, an inspection will usually reveal major problems that may even surprise the seller. The obvious ones are corroded plumbing, antiquated and unsafe electrical systems, or structural and foundation problems. And, the discovery of such problems may cause the buyer to re- think his or her offer. Although a competent inspector can uncover deal-crushing defects, these problems are usually not commonplace. Typically, the seller will already have told the buyer about anything major. More often, inspections reveal less serious problems; problems that may not be serious but can be aggravating.

For instance, there could be a minor electrical defect, or inferior ventilation of a heating system or fireplace. If so, the buyer is usually in the position of having the purchase price reduced, or the defect corrected. More important, it also prevents the minor problem from developing into a major disaster a year or two down the road.

There is, of course, the possibility that the home inspection will produce another outcome: everything is fine. In this case, they buyer gains piece of mind, confident about the major investment he or she is about to make. That, too, is an enormous benefit for the cost of the inspection.

Now, how does a buyer find a home inspection?
By asking their real estate agent, friends, or lender. Inspectors are also listed in the Yellow Pages under “Home Inspection Services.” But, a word of advice, don’t hire a contractor. Contractors earn their living doing repair and renovation work, so their recommendations aren’t likely to be as objective as those of a professional inspector.

Is real estate a wise investment?
There are fewer investments that have shown a better return. However, the key to investing wisely in real estate is understanding how the industry differs from others.

For example, when the defense industry dips, it usually shows a national decline and the stock prices of defense-oriented firms drop across the board. The same is true of most industries. They are impacted nationally. That is not the case with real estate, which is actually an industry and investment driven by local conditions. One community may suddenly lose a manufacturing facility, and almost overnight the market is flooded with properties for sale.

Obviously, the key to successful real estate investing, like stocks and bonds, is to buy low and sell high. But, how do you know when the “low” has been reached? Or, for that matter, how can you judge when you property may be peaking in value? Some investors rely partially on the media. They read the daily newspaper, watch television and follow the trends. Although the media provides a good deal of information, remember that by the time things are printed or broadcast, the news may be old.

For instance, you will find statistics frequently quoted in the media that have been supplied by the National Association of REALTORS (NAR). But, NAR statistics-like most- tell you where things have been, not where they are going.

So what can you do? First, check local economic indicators. Also, the local chamber of commerce can frequently help. They usually have information on which companies are moving in and out of an area.

Logically, the relocation of a firm into a community generally indicates that demand for real estate in that marketplace will increase-while if firms are moving out of the area, housing demand will often shrink. Aside from economic indicators, check real estate trends and cycles. Talk to a real estate agent. They can provide statistics on how quickly homes have sold, how prices have fluctuated in the past six to 12 months, and projections of future home sales. They can show you how today’s market compares to last year’s. Are sales headed up? Down? The same? The answers will not only help you determine what the market is like in your area, but they will also be critically important in helping you determine when and where to make your real estate investment.

Does a home warranty protect a buyer in the event something goes wrong after they have purchased a property?
Sometimes. That’s because home warranties are often times misunderstood and not every warranty provides the same protection. All warranty companies are not equal, either.

Warranties, of course, were designed to protect buyers from problems that emerged after they moved into a dwelling. For example, if a major appliance breaks or the roof leaks, the ideal warranty kicks in and pays for the repairs.

On the surface, this sounds simple and straight-forward. But, most of the time it is not.

First, all warranties differ. Aside form the obvious differences, the amount of deductible required, they may also vary as what is covered and what is not. For instance, with some warranties if the hot water heater works on the day of closing, but suddenly does not work six months later, then it may be covered. And, with other policies if the water heater was not in good working condition when the home was purchased, and it breaks a week or two later, there is no coverage.

Warranties can be critically important when it comes to new construction, too. Obviously, the reputation of the builder is an important consideration. However, problems with new homes can be enormously expensive if they are not covered by a warranty.

There are two types of defects when it comes to new homes – patent or latent. Patent are those problems which can be seen. Cracked plaster, a fence that is off level, etc. Latent problems develop later, and may not show up for five or six months. Ground shifting, for example. Latent problems are usually more expensive than patent problems.

Thus, the warranty for a new home can be one of the most important documents executed during the buying process.
Whether you’re purchasing a new home or a resale, remember that warranties definitely have a place when it comes to protection and peace or mind in the real estate transaction, but make sure that you check them out carefully.

Is a final walk through, an inspection of the property by the buyer before they move in — really important? Yes, it is. The intent of a pre-closing inspection is to give the buyer one last opportunity to verify that they are getting all that was promised in the sales contract. Although buyers still have legal recourse if they discover-even after closing-that the condition of the home is not as it should be.

The best time to identify problems is before closing, when the seller will be motivated to correct any deficiencies in order to close the transaction. Typically, a buyer takes possession of a property one to three months after signing the sales agreement. But, a lot can happen before the actual move-in. Appliances and fixtures can break down, and walls, carpets and doors can be damaged during the seller’s move-out. Sometimes the seller will simply have forgotten that he or she had agreed to leave the refrigerator or window coverings with the house. Whatever the reason, problems identified before closing have the best chance of being remedied.

If possible, schedule the inspection right before the closing, such as the day before. Ask your real estate agent to attend the inspection with you. What should you be inspecting? Using a copy of the sales contract as a checklist, first make sure that all items that should be in place (appliances, built-in furniture, window coverings, fixtures, etc.) are there.

Test each appliance to make sure they work properly. Test all electrical switches and the garage door opener, if there is one. Run the garbage disposal and turn on every water faucet, checking under the sinks for leaks. Flush the toilets. Inspect the floors, carpets, walls and doors for recent damage. If you discover that something is damaged or missing, make a note of it and inform your agent immediately.

In most cases, the seller is usually able to take care of small problems immediately, either by making a needed repair or offering compensation to handle it. And, if there are major problems the seller can even sign a statement acknowledging the deficiency and agree to correct it. Although pre-closing inspections take time and may be inconvenient, they are important and well worth the buyer’s time.

What are “contingencies” and why are they important?
A “contingency,” is an escape-clause that is added in-writing to a contract which allows a buyer to back out of the transaction if certain conditions aren’t met. Some contingencies, often called `riders’-like attorney approval of the contract, or the passing of a home inspection-are obviously designed to protect buyers from a poorly written contract or a defective home.

Other purchase contingencies may hinge on the buyer’s current living situation, or his or her cash-flow. For example, when it comes to contingencies many first-time buyers can be better prospects for a seller’s home than move-up buyers. Why? Because offers from homeowners usually are contingent upon the sale of their present home. And, even if a move-up buyer has an offer for their home in-hand, their buyer’s offer may be contingent on another contingency (or sale) and so on down the line. If one transaction in the chain falls through, they all might. Cash offers can also be more attractive to sellers.

Why? After all, the seller will get their money at closing whether or not the buyer has cash or takes out a loan. True, but cash offers don’t require lender approval, and loan approval is never a certainty and may delay or prevent closing. (Incidentally, for this reason, buyers who get pre-qualified for a loan have an edge over other buyers. A pre-qualified buyer is the same as a cash buyer.)

Buyers offering a larger-than-customary amount of “earnest money”, (a deposit that accompanies an offer) can be more appealing too. More money deposited with the signed contract often demonstrates greater sincerity and motivation to close the transaction.

Know Your Credit Worthiness
Look at your credit report before you go to a lender. It is not uncommon to find problems with reports, especially if you have a common last name. To get copies of your credit report, start at My FICO Score.

Get Pre-Approved
After you see your credit report and any problems are cleared up, get pre-approved with a lender. Take the steps necessary to get a letter from the lender stating you are “pre-approved” for a loan in a specific price range. It’s important to have this letter before you make a contract offer to buy real estate. Once your pre-approved, you know what price range of homes you should be looking at.

What Kind of House is Right?
Determine the specifics you want or need in a home.
– What are your day to day and future needs?
– Do you enjoy swinging a hammer?
– Older houses have great charm, but may need updating.
– New homes offer the latest energy efficiency and design features.
– Larger lots can give room for additions and swimming pools.
– A fixer upper can dramatically increase in worth.
– A PUD may have private recreational facilities such as a pool and play parks.
– A condo or town-house will relieve you of yard work and exterior maintenance.

Sit down with your real estate agent and make up a wants and needs list. Knowing your price range, your agent can determine in what neighborhoods or towns to start looking. You may find that you are limited to where you look based on your situation. There is no sense in wasting your or your agent’s time in areas out of your price range.

Wants and Needs
– Price range
– Building style/design
– New construction
– Remodeled
– Fixer upper
– Minimum # bedrooms
– Bathrooms
– Family room
– Fire place
– Office/den
– Hardwood floors
– Swimming pool / Spa
– In-law quarters
– Workshop
– Central air conditioning
– Parking facilities
– Yard size
– School district
– Work locations
– Special zoning or location

With a list of houses that you can afford to buy, drive-by them and check out the surrounding neighborhood. Next make an appointment with your real estate agent to view the interior of the ones you are interested in. After you have narrowed your selection to few houses it is important to visit them at different times of the day. Visit them during the morning commute time. If you visit only during the middle of the day, you might not notice if the street in front of the home is used as a minor thoroughfare or a shortcut. This is also a good time to find out how you emerge from you residential area into traffic on a thoroughfare or how long it takes for freeway access. Go back after dark and walk around the block. You might notice that headlights from approaching traffic shine into the home or hear sounds from a nearby night club or park that you were not aware of.

After previewing a number of homes, you will want to preview some a second time. This is the time to make measurements, ask questions and make a closer self-inspection. When you want to make an offer, ask your agent for sales comps to arrive at an offering price. A “seller’s market” or “buyer’s market” can have big effect on how much to offer. There is no sense in making a low offer on a well priced home in a seller’s market.

A properly written contract will allow a buyer a number of outs if certain items are not met or approved. Get a copy of a typical real estate contract prior to making an offer and have your agent go over it with you.

Questions to Ask a Prospective Realtor:

1. Do you work as a full time Real Estate Agent?
2. How do you market your property?
3. Do you have a full time Assistant to see that no details are overlooked?
4. How do buyers contact you?
5. Are you marketing real estate on the internet?
6. If I choose to do a tax deferred exchange, are you experienced in such transactions?
7. In what ways will you encourage other Real Estate agents to sell my home?
8. Do you have a system to follow-up with other agents so that we get valuable feedback after every showing?
9. How many properties have you sold within the past 30 days? 90 days? 6 months?
10. Do you have a list of references that I may check?
11. Are you on the internet exposing my property to millions of buyers instantly?
12. What is my property worth?
13. What listing price do you recommend?
14. How did you arrive at that price?
15. How will you assist in my relocation plans?
16. Do you have a written specific marketing plan designed to sell my property quickly and for top dollar?
17. Are you affiliated with a Mortgage Broker with over 300 wholesale lenders & have underwriting experience?
18. Do you guarantee my satisfaction by allowing me to exit the listing agreement at any time, if I am not happy?

If the agent you are interviewing does not answer the above questions to your satisfaction, you should probably find another who does!

Setting the Price on your Home
The three factors to consider in selling your home Location – Condition – Price.

Location
Your home’s location and setting influences its value. A home inside a quiet subdivision sells for more that the identical home on a busy street. Remote areas typically sell for less than close-in areas. Views, streams and trees usually enhance value. You obviously have no control over location.

Condition
New homes enjoy a marketing edge over resale homes because they are shiny and clean. ASnd builders enhance their appeal by offering model homes (clean, bright, decorated in current colors and amenities) for buyers to examine.

Price
If Google stock is trading between 1100 and 1200, it does no good to insist on selling at 1500. Likewise, your home must be priced within the appropriate range. You must actually “sell” your property twice: first to a buyer and then to an appraiser. The buyer is more subjective and compares the amenities of your home to those of other homes in the same price range. The appraiser is more objective and compares age, size, and cost-identifiable features in your home against other properties that have sold. Your agent must use his experience and expertise to fine-tune the price by taking into consideration all of these variables.

Pre-Qualification
Most home buyers go about the process completely backwards! That is they spend several weeks, months and sometimes years, looking at real estate ads, driving neighborhoods and attending open houses looking for the perfect home. Once they’ve found the house of their dreams, they place an offer to purchase it subject to obtaining financing. Then they shop for a loan. More often than not, it is above their means and they lose the sale because they can’t finance it. Not only are they frustrated but so is the inexperienced agent who chauffeured them around for a year.

The savvy buyer of today shops the loan first and then knowing exactly how much they can afford, will then seek only properties that are within their reach.

There are two methods of doing this. The standard way is to call or meet with a loan agent, tell them their financial and credit history, have the agent “run the ratios” and then tell the borrowers about how much they will qualify for. The flaws in this scenario are that the borrowers often forget to tell about their 5 late credit card payments, their new boat payment or push their income figures beyond reality.

The preferred method is to complete an application, provide income and employment records, have the loan agent run a credit report then actually submit the file to a wholesale lender for underwriting then receive an approval and commitment for a loan for the borrower.

This is also a powerful negotiating tool when presenting an offer to purchase. I don’t know of a single seller who would prefer to accept an offer from a buyer subject to obtaining financing over the buyer who already has a loan commitment! This can and will save you money when negotiating the contract. Get a loan commitment first, then find your dream house.