Monday, December 6, 2010

Negotiating The Price As A New Homebuyer

When you have spent sufficient time researching concerning your potential house and you are comfortable with doing work with the sales agent, it is about time to offer your price. However, the MN home buying offer is not the conclusion of the negotiation process; you might be involved with negotiating a final price even after you have made an offer if the home owner declines to accept the initial offer, hence you'll want to have a strategy for you to secure the cost you wish - or at least somewhere around that range - before you stretch your original offer.

Having knowledge of almost all of the conditions of any sales contract in addition to working on a back-up plan are just a few ways to ensure you really do get the best price possible for your potential new home. The 'Consumer's Guide to Home Buying' by the Barron's series encourages all prospective homeowners to create a list of items they can practice prior to the negotiation process begins. The following are a number of things to think about as you start discussing the price of your brand new house:

1.Who will be making the decisions in this sale?Who will be making the decisions in this sale, for all parties involved? Knowing the players benefits the competent negotiator as this allows you to understand who makes the majority of the influence in the entire sales negotiation. A basic question you should know the answer to is, for example,, is the seller working independently or is he/she working with a real estate agent? Knowing who you will be negotiating with can help you determine the most suitable strategy for negotiations on terms and let you evaluate the selling party's trustworthiness.

2. What is your contingency plan? If the seller refuses all of your offers, do you still have other options? It can be frustrating not to get what you want from the negotiation, but you have to know when to stop pushing for what you want and pursue another direction. Know exactly how high you're ready to pay for the property and do not go over and above your price just to win.

3. Have you gone through the particulars of the deal? It's necessary to fully appreciate every term and condition of the sales agreement so you will not be left with undesirable surprises at closing. Make an effort to review the contract along with all the details regarding the sale and note any questions you have. Sit down with the seller so that you can discuss everything that you are not sure of to eliminate any reservations on signing the sales agreement in the event that your offer is accepted.

4. Do you feel comfortable with the realtor? Your Minnesota real estate agent should be able to provide assistance and decent real estate advice with regards to the entire process of negotiation for your house purchase, but you need to feel like you can trust them. Make sure you have spent an ample amount of time talking to them to create a positive relationship and also so you can talk about your reservations and thoughts about the property well before the negotiating process commences so that you can make a decision based on facts.

5. Are you ready to deal with any problems that may arise? Poor communication skills from the seller's agent, hostility from the seller and other undesirable exchange of words which arise during negotiation can definitely make it hard to come to a fair deal. You need to keep your cool and don't hesitate to stop the deal if you don't think it is the right one for you.

Wednesday, October 6, 2010

Steps in Buying Real Estate - Tips On Inspecting Houses

You want to prevent yourself from major surprises if you might be thinking of buying a brand new Minnesota real estate, hence hiring a specialized home inspector can easily relieve much of the stress and concerns regarding your potential real estate early on in the home buying process.

However, it's not necessary to carry out an official property inspection prior to the signing the initial contract, thus it is probably best to understand as much as possible about the shape of the MN property by having an straightforward talk with the vendor and perhaps conducting your own 'mini' inspection where you are able to check for standard structural defects or potential problems.

The majority of home owners will probably be open to having you inspect the house prior to the signing of the preliminary contract, which then gives you some leveraging influence while you are negotiating the contract cost. Barron's 'Smart Consumer's Guide to Home Buying' recommends all future homebuyers to make an inspection checlist where they can take note of any problems as well as areas of concern prior to the contract signing. "If you are thinking about buying a house that will need renovation or upgrading, the more value will be derived from your mini-inspection," explains the authors of the book.

Consider creating an inspection guideline for a property inspection report to help you carry out a walk-through of the real estate and take notes about the overall look of the said property. Below are some critical areas for you to check:

Find out about how old the house already is - you will need to ask the seller exactly howl ong since the house was constructed, how many times the site has been reconstructed, as well as check if there are any blueprints available.

Check out the groundwork for potential issues - check for large breaks or perhaps obvious water piping conditions in the house as well as in the basement. Inquire concerning flooding or weather-related problems that have taken their toll on the house in the past.

Check out the details of the property, especially the interior, for damages and other potential problems - you'll have to ensure that all doorways open and close easily and that the walls are still stable and well-grounded. Take note of any visible cracks or deterioration and make sure you also take pictures of any issues that stands out. You will want to examine potential problems of odor or molds as well as ensure all water pipes are properly maintained and functioning.

Check out the external details of the home for potential problems and other damages - do all the doors and windows have adequate insulation? Do they open and close fluidly? Ensure all the doors, windows and sidings do not have chips nor any evident wear and tear.

Look at heaters and air conditioning equipment - ask regarding the average heating and cooling costs in a month, and check how long the devices have been in place. In some cases, you may need to spend money on a new heating and air conditioning equipment.

In addition to the written inspection survey, you may consider taking photographs and also short videos with a digital camera/camcorder to help you to look at the actual inspection again in more detail at a later date. The extra footage may also provide you with a better position during the negotiation process with the real estate agent.

Sunday, August 8, 2010

Buying A Lot As A First Time Home Buyer

Did you ever consider building your own dream home? The first thing that you have to do to achieve this dream is to find the right piece of property. There are some things that you have to take into consideration aside from where it is located, there are different types and styles of MN real estate properties to choose from. In addition to these, it is best that you are aware of such things such as the lots accessibility to power and other important amenities and the natural features that are found in the area.

In the book, "Tips and Traps When Buying a Home", written by Robert Irwin, the author recommends using a checklist when searching for a lot as a first time home buyer. This checklist will help ensure that critical details are not missed when you go about finding the right property. Here are some essential tips on how to choose the right property:

1. Map out the nearest cities and towns. If the lot that you are interested in is located in a rural area, find out how near the towns and cities are. You may have the need to commute from your new home to work or bring your children to school. Knowing what the access roads are and the distance of your commute to places that you need to go will allow you to see what kind of lifestyle you might have if you choose to buy that lot.

2. Review natural features. How many trees are in and around the lot? Do you have access to a lake? How far is it from your new home? Many first time homebuyers overlook these important details when they have found what looks to be like their ideal lot. However, building a house that is very close to a lake or a forest means you may need to deal with wildlife and flooding during certain times of the year.

3. Source of water. If you will build a home in an urban area, it will be easy for you to get a source of water. This may not be the case especial if you plan to buy a lot in the countryside. You may have to work with a private water company and find ways to bring water to your home.

4. Inspect the soil quality. To ensure that your new home will be build on a solid foundation, determine the quality of the soil. This is an important factor that you have to take into serious consideration. If you are unsure on how to go about it, hire a professional.

5. Find out about building restrictions. Knowing what the building restrictions are in the area that you plan to build a new home will aid you in your planning. It is highly possible that there are restrictions on what you can build, how much you can renovate or remodel, especially if the property is located near a national forest, a wildlife preserve or a major landmark. Being aware of any restrictions will can help you decide what to do and save you from investing in something that you might regret on a later date.

Aside from the physical features of the property, buyers should check the land title. Make sure that the title of the property is clear and that are no easements of any kind on the lot. This will make the process of building your home a lot less complicated and make it easier for you to purchase the lot for you to build your dream home.

Minnesota Realtor Alexandria P. Anderson helps people to find and purchase Minnetonka Condos, real estate, and Minnetonka Townhomes in MN.

Wednesday, June 9, 2010

How To Value The Property As A First Time Homebuyer

Finding the perfect Minnesota home as a first time homebuyer can be a long, drawn-out task if you're not organized and prepared to go through all the steps involved with the search process. One of the most important steps in the home buying process involves the valuation of the home, or determining what the home is worth from your perspective.

In the book, "Home Buying for Dummies", authors Eric Tyson and Raymond Brown specified that the true value of the home does not only consist of the price. Since value means different things to different people, there is a need for the individual home buyer to be able to identify what are the most important elements that they would like their new home to have. What the true value of your new home is based on what it is worth to you and the benefits that you will get from making the investment.

The first step in the valuation process involves reviewing the actual dollar cost of the home, compared to other homes in the neighborhood. You need to review MN MLS listings and find out what the seller paid for the home, if possible. Even though the amount the seller paid for the home may be much higher or lower than the asking price, it helps to give you a baseline amount to work with. Of course, you will need to factor in how long ago the seller purchased the home, because any longer than two to three years may not give you an accurate estimate at all.

The next step in determining the value of the home is to consider how much work needs to be put into it if you were to move in next week. What needs to be fixed? How much do you estimate the repairs would cost? This amount may or may not be factored into the asking price, so it's important that you understand what type of investment you will need to make on top of the asking price in order to ensure your home is exactly how you would like it to be.

The final step in determining the true value of any of the homes for sale is to project what the real estate value of your investment will be 5, 10 or 20 years from the date of your purchase. Is the home for sale located in a brand new subdivision or in a historic part of town? What is the average appreciation price of the homes in the neighborhood that you are interested in? Home buyers must be aware of the fact that investing in real estate property in an area where the price steadily appreciates will be to their advantage in case they ever decide to sell the home that they have purchased.

When searching for your ideal home, make a studied assessment of the different homes for sale in the various neighborhoods. The true value of your new home is not just what the actual asking price is because of the things that have to be taken into consideration, like repairs, price history, the benefits you will get from living in the area, and what the property will be worth in the future. Find out more about the new homes for sale and what neighborhoods have good appreciation rates so you can make the most out of your investment.

Thursday, May 13, 2010

Doing Neighborhood Research as a First-time Homebuyer

If you are a first time home buyer, the excitement of finding your dream home may turn into a chore because of the number of things that have to be kept track of and the important decisions that have to be made. Any undue stress and headaches in your property search and purchase can be eliminated by going about your search in an organized manner. It is of utmost importance to spend some time to assess new neighborhoods and looking at prospective MN homes. It may also be necessary to do your own research to discover which neighborhood is the ideal area for you to live in.

One of the most important things to do as a first time homebuyer is to explore at least a five-block radius of your ideal neighborhood to see all of the homes available on the market. You can do this by driving around the area, or navigating your way through the neighborhood using an online mapping tool. This will give you a chance to narrow your focus to only the areas that you are most interested in and give you a relatively large inventory to work with.

As a first time homebuyer, it's also a good idea to find out where the nearest gas stations, public library, grocery stores and access points to the interstate or major highways are. Remember, you need to imagine what it would be like to actually live in this neighborhood. Make a mental note of the locations of different stores, service centers and roadways so you can be confident about running errands and commuting to work with peace of mind.

You may also want to learn about zoning laws in your particular neighborhood, especially if you're considering moving to an entirely new area. While some first time homebuyers are satisfied with the layout and structure of their new home, others are determined to start remodeling within months of moving in. Make sure you understand basic zoning laws and regulations for building pools, decks and extending your home out into the garden or yard so you can make the best decision for your needs.

It is best to find out in order to be prepared to budget for expenses like that of association fees, taxes, and other fees that have to be paid before deciding which among the homes for sale to purchase. Local county tax collectors usually have a website from which you can get tax information by entering an address. For association fees and other fees related to the purchase of any of the homes for sale, contact a local lender or a licensed real estate professional for an estimate.

Taking the time and effort to take find out about the new neighborhood you plan to live in is a vital step in the purchasing any homes for sale. Find out the important details about taxes, zoning laws and other related fees associated with a real estate property purchase by doing online research and contacting a local lender, a mortgage professional or a licensed real estate agent. The data that you have gathered will greatly aid you in deciding which among the homes for sale to purchase.

Tuesday, April 13, 2010

Closing Costs Essentials For First Time Homebuyers

Experts explain what it takes Minnesota first time homebuyers to keep the home buying experience as easy as possible and that is knowing what closing costs are. Most people seem to be unaware that closing costs are usually set at 15 percent of the sales amount and loaners usually ask that you pay for it directly. Although some lenders can roll them into the loan package, it would still be advisable to identify them as early as possible so you can wisely project your funds and easily discuss what you want as far as terms of arrangement in the final price is concerned.

Remember that the lender’s primary basis in the amount he presented to you is the sales price paid by the buyer and not necessarily the net price (or the sales price minus the closing costs). There are various ways in which closing costs are allocated and this may need the help of your realtor and lender if only to come up with the most agreeable plan for you to stay within your budget limit.

Having knowledge about the responsibilities of a buyer is the first prerequisite to understanding what closing costs are. As explained by Barron, the author of the book 'Smart Consumer's Guide to Home Buying', homebuyers must know that custom dictates allocation of closing costs and designates buyer and seller responsibilities, and not the law, as many believes it to be.

It is the buyer who typically settles all the fees and the loan’s the discount points. The lender adds all these at the end of the contract and may vary differently from one financial institution to another. Bankers typically assign this fee as part of your contract or may be waived for important customers, yet it is best that you have an exact idea what the estimated amount will be.

Another responsibility of the buyer is the premium of the homeowner’s title insurance policy that has to be paid and needs to be settled before the purchasing even starts. An extra cash in your hands will be useful when paying for the premium so that it won't get rolled into the loan. Note also how premium cost may vary from one insurance company to another. Make some research on the homeowners insurance policy rates or look around for more options before you decide to sign the contract right away. These costs constitute the seller's obligations.

Sales Commissions - are the fees apportioned to the buyer's and seller's agents. But these may be dependent upon the agent you are working with.

Inspection Costs - refers to the expenses related to the home's inspection and all other forms of inspection that may be required before the buying and selling commence.

Title Insurance - there is one misconception about title insurance since many first time homebuyers think that they will need to take care of any costs associated with the title company except it. However, title insurance costs are included in the closing cost and thus becomes the seller's responsibility.

When you know what closing costs are, you can have a better idea as to what your home's final price will be during the signing. As a matter of fact, if early on the financing process you have done so, the lender may give you necessary information like the fees you will have to pay and discount points among others.

Tuesday, March 16, 2010

How to Get Started with Buying Your Home Online

With the wealth of realtor websites, bank financing options and home search tools available online, more people are finding it easier than ever to buy their home online. Buying your Minnesota home online can make it easier to conduct a search of the latest listings, narrow down the field of choices and learn more about your prospective neighborhood without ever visiting the property in person.

Using the search facilities of a real estate website to find the latest listings of homes for sale within your state or any other state across the nation will help you save time, money, and effort. There are some essential things that you need to be aware of to be able to conduct a more efficient real estate online property search. Here are some things are to be taken into consideration when searching for any real estate property online:

1. Limit your browsing. You might get carried away and spend too much time looking through homes for sale that does not meet your requirements. It is possible to target your search by typing in the name of the state, then homes for sale, and then indicating the detailed parameters of your real estate property requirements in the search property listings tool of a real estate website.

2. Search for a website that will give you access to real estate property listings by state. It is possible to search for individual properties, but that would take up much more of your valuable time and might be even a waste of time if the property is no longer available and ad is still there. By finding a website that has an adequate number of updated listings, you will be able to have a more effective search.

3. Get an aerial view of the property. It is possible to a bird's eyes view of the neighborhood and to take a closer look at your prospective homes for sale buying using Google Maps satellite images and other tools. You will be able to get to see the look at the outside of the home you want to purchase, the garden space, the garage and see the surrounding areas.

4. Don't rely solely on listing pictures. If you live in the neighborhood, set up an appointment for a showing and take your own pictures of the property. This will give you a much more realistic perspective of the property so that you have solid information to work with during your final selection process.

5. Check the credentials of the real estate agent. A professional real estate agent can help you to find the right real estate property without the headaches related to the property search and documentation as these things can be handled by them. You would have to find out how established the real estate agent is in the business, their credentials, their track history, if they are licensed, and what kind of listings they have.

6. Use a variety of search tools. Shelley O'Hara and Nancy Lewis, authors of the book, "The Complete Idiot's Gide to Buying and Selling a Home" encourages prospective homebuyers to use several different sites and home buying tools when doing their research. Begin the search with sites such as the International Real Estate Directory and the National Association of Realtors.

Author: Alexandria P. Anderson specializes helping people to find and purchase Richfield MN real estate, as well as Richfield homes for sale for her Minnesota real estate clients.

Monday, January 18, 2010

Key Reasons to Go to Home Buying Seminars

Mortgage lenders, banks, libraries and real estate firms often host home buying seminars to educate the community about the home buying process. Whether you're a Minnesota first time homebuyer or are thinking about moving to a new neighborhood, the home buying seminar in your area is a great place to have your questions about home buying answered by local professionals.

Home buying seminars are commonly conducted in places like the local library, the community center, or in a banquet room of a hotel or restaurant. It may be held as a lecture with a Q&A session, or as a PowerPoint presentation or as a slide show. Many of the home buying seminars can be attended free of charge and you will surely benefit from tremendous amount of information that will be given.

A key benefit of attending such seminars is getting meet people like the local realtors. This is a great opportunity to know the various realtors and agents in person, rather that have to having to find them by using the Yellow Pages or search engines. It is also a way to establish new relationships and get to learn more about their services or the firm that they are working for.

One of the key benefits of going to home buying seminars is that you will get to meet in person several local realtors and agents. It will give you a chance to personally interact with them, rather than going about it online or through the phone. It is also an excellent way to establish new relationships and get in-depth information about the realtor themselves or the firm that they work with.

Some lenders and Minnesota realtors may also offer discounts or incentives for attending their own branded seminar. While local libraries and educators also host these informational events, they may not be able to direct you to specific professionals in the area. When you attend a seminar hosted by a lender or realtor, you'll have an opportunity to get referrals and other insider information about services you need. Mortgage lenders who host the event may waive your closing costs if you attend the event, and realtors may offer gift cards or other free gifts as part of their invitation.

Christina Spira and Mariwyn Evans, authors of the book "1,200 Great Sales Tips for Real Estate Pros" explain that realtors who go the extra mile often create introductory videotapes about their services and offer free gift bags to prospects attending the seminar as a way to build a relationship. You may be able to learn more about the realtor's background, services and their unique approach with these extra freebies at the end of the event.

Attending a home buying seminar offers several benefits and can help you get some of the tough questions about home buying answered by real estate professionals in your area. Consider signing up for at least one or two events in your preferred neighborhoods for an insider's view of the market, and to learn more about seasoned realtors in your area.