Basics of Property Management: Screening Potential Tenants
Tips To Buy A Home With The Help Of A Real Estate Agent
Jesse Obrien
The time is drawing near for you to be able to purchase a home, especially with the low-interest rates available on 30-year mortgages, helping your spending dollar to stretch further. Here are some recommendations to help you work with your real estate agent while you shop for a home to buy.
Follow Your Budget
When you first start out looking at homes to purchase with the help of your real estate agent, be sure you find out your spending budget first. It can be easy to get over-excited and start looking at homes before you have a good understanding of what you can afford. This can lead to some serious disappointment and discouragement if you find a home you love only to discover out later that it is too expensive for what you can afford.
Communicate with a mortgage broker early on to evaluate your credit and income limits so you can get a pre-qualification amount. If you don't have a mortgage broker to work with yet, your real estate agent can provide you some professional recommendations. Having a pre-approval letter as you start shopping for a home will make your offer stronger when you find a home that you want to buy. And this can be helpful when you are shopping for a home in a hot market with a lot of competing buyers.
Negotiate Wisely
After searching for a home that fits your budget with the features and amenities you want, it is time to act quickly to submit an offer to purchase the home. You don't want to delay too long on making an offer because you can be at risk of losing the home to another buyer. Consult with your real estate agent to determine a good offer price. They will pull comparable sales in the area to calculate an appropriate offer price. Then, you can look at inclusions that you want to add to your home purchase contract to customize your home purchase details and terms.
For example, you can ask your real estate agent to help you write an offer to include the seller to pay for your closing costs. This can help you in coming up with funds at closing in addition to your down payment amount. You can also request the home be inspected for radon or mold prior to the sale being completed, which is a good way to protect your family from these dangers. Another option is to ask for the seller to pay for a home warranty, which will cover repairs and break-downs on appliances and systems in your home. A home warranty is helpful when you are buying an existing home to help you plan for any unexpected expenses and repairs.
Contact a local real estate agent for more tips.
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For the last several years, I've used a property management firm to help with my rental properties. One of the tasks that they handle for me is screening applicants who would like to move into one of my vacant units. Their expertise has helped me lower my tenant turnover and find people who want to stay with me for years. Part of the process is a tenant screening credit check. Before any further contact takes place, my manager orders credit reports from at least two agencies. That is enough to tell us if an applicant is a good financial risk. Assuming the references work out, I meet the candidate and make the final decision. If you own rental properties, let me tell you more about the benefits of having a property manager. I'm betting you'll find this type of arrangement will work for you too.