How To Negotiate The Best Price For Your First Home

You submit an offer to buy a Minnesota home only after you've done your research about your prospective home and if you're already comfortable dealing with the seller. You still have to do some work after you've made your offer though. A seller can either accept or reject an offer. Be prepared to negotiate your way through in getting the price you want.

Knowledge of the contract and devising a contingency plan are just some ways to ensure you get your dream home within your budget. Barron's 'Consumer's Guide to Home Buying' advises homebuyers to make a checklist of things to consider even before entering the negotiation process. Below are some of the things you need to pay attention to when negotiating:

1. Knowing who the decision-makers are in the transaction. Understanding who really calls the shots is a critical element in any negotiation. Is the seller working alone or do they involve their lawyers, accountants, agents or any other third parties in their transactions? You can adapt your negotiating approach and gauge the trustworthiness of the seller if you know who the decision makers behind the contract are.

2. Do you have a contingency plan? If the seller refuses all of your offers, do you have other options? It can be frustrating to not be able to get what you want from the negotiation, but you also need to know when to back off and pursue another direction. Outline exactly how high you are willing to bid for the home and don't go beyond your decision just to win.

3. Read the whole contract in detail. Know what you're getting into before you sign your name on the contract. Review the contract in detail and take note of any provisions that are not clear to you. It is best to clarify all terms in the contract with the seller than to assume the meaning of the terms yourself.

4. Are you comfortable with your realtor? Your realtor or buyer's agent can provide guidance and professional advice about the home negotiation process, but you need to feel like you can trust them. Make sure you have spent enough time with them to develop a positive relationship and share your thoughts or reservations about the home well before the negotiating process gets started so you can make the most informed decision.

5. Be prepared to handle negotiation setbacks. Poor communication happens in any negotiation often and you have to learn how to deal with it. There are other things as well that make negotiating difficult. It is important to remain impervious to negotiation setbacks but you have to know when to stop negotiating when you think the transaction is not going anywhere.

Author and Realtor Alexandria P. Anderson helps clients to find and purchase Real Estate in Minnesota and Minnesota properties in and around the Twin Cities.

First Time Homebuyer's Guide To Self Inspections

All homebuyers are prone to overlook major problems during the buying process only to be surprised by them once they have already paid for the MN property. You can consider hiring a professional home inspector even before signing any contract to avoid any regrets and stress after buying a property.

Then again, official home inspections are only required after an initial contract is signed. It would be better for you to gather your own information about the house you are eyeing. You can go straight to the seller and ask him or her everything about the house. You can also ask for permission to conduct your own mini-inspection.

Most sellers will be open to having you inspect the home well before signing any type of contract, and this gives you some leverage when you are negotiating the final price. Barron's 'Smart Consumer's Guide to Home Buying' encourages all prospective homebuyers to prepare a checklist and note any problems and areas of concern as early as possible. The authors of the book explain that, "If you are thinking about buying a house that will need renovation or upgrading, the more value will be derived from your mini-inspection."

You need a checklist in inspecting the house to ensure that you cover all important aspects that you need to look at. The information you gather from this checklist can then be used to create a written report to help you in assessing the overall condition of the house. Here are some important matters to include in your checklist:

Know the age of the house - Know the exact date when the house was built. You must also check if there are any renovations or upgrades done on the home, when they took place and if the house's blueprints are still available.

Check the foundation for potential problems - are there any large cracks or noticeable water problems around the home or in the basement? Ask about flooding issues and weather-related problems that have taken their toll on the home in different seasons.

Check the interior for defects and potential problems - you'll want to make sure that all doors open and close easily and that all the walls are flat, even and free of cracks. Make a note of any visible cracks or deterioration and take pictures of anything that stands out. You'll also want to check for mold problems, odors and make sure all water entry areas are clear and functioning properly.

Inspect the exterior of the house - Check if all windows and doors move smoothly and if these are properly insulated. Inspect the sidings of the house. Look for signs of deterioration.

Review heating and air conditioning appliances - ask about the average heating and cooling costs each month, and find out how long the systems have been in place. In some cases, you may need to invest in a new water heater or air conditioning system.

Look at all your notes and create a written report about the condition of the house you just inspected. You may also consider using a digital camera or camcorder to take pictures and videos for a more detailed review in the future. This additional effort may give you an advantage over the seller come negotiation time.

Things To Consider in Buying a Home

Buying a home is a long-term investment. You'll probably live in a home for some time so you have to make sure that you really want the home you will purchase. It is best to be clear about what you want in a home before you start your search. While most Minnesota real estate agents can guide you in your search, the decision to purchase a home, and its implications, wholly rest unto you.

The home buying process can be confusing to first time homebuyers simply because of the number of decisions a buyer has to make. A buyer first has to decide about the location of a home. The buyer is then confronted with other choices such as what type of home to buy, the condition of the home and the home's amenities. It would be better to create a criteria of a perfect home to judge all homes you encounter on your search easily. Create your criteria with these questions and considerations in mind:

1. What amenities do you want your home to have? Do you want to have a swimming pool, a garden, or a fireplace? Be clear with what you want so you can skip houses that don't meet your criteria.

2. Specify where you want to be located. The home's location is one of the most significant factors when considering different homes, according to author Ilyce Glink of '100 Questions Every First-Time Home Buyer Should Ask'. Your location will determine how far you'll live in relation to family and friends, your kid's school, your work, and shopping areas. Location also determines the time you'll spend traveling each day. Ask yourself if your home and location justify your travel time each day.

3. The size of your home. Specify how much space your family needs and if you are expecting any additions to your family in the near future. Your needs will determine the size of the home that you will purchase. If your family is growing, you might want to purchase a bigger home to accommodate your family three to five years in the future.

4. Do you want to buy a home that needs renovation? Are you willing to put in the time, effort and finances to renovate a home? How much are you willing to invest on repairs and modifications? Create a standard concerning renovations so you can remove certain homes from your search.

5. Do you value safety and security? This is an important issue for families with small children and individuals living alone. What are the things you will need in order to feel secure in a home and neighborhood? Eliminate homes that do not pass your safety and security guidelines.

Being specific about your home buying criteria will help you save time in searching for your home. It will also make your stay in your new home more enjoyable because your new home would match your needs and wants.

Renting Or Buying Your First Home - What to Consider

Buying and renting a home each has its own benefits and drawbacks. We will discuss the issues surrounding both home ownership and renting to aid you in deciding which path to follow.

Many potential homeowners simply don't take the first step towards home ownership because of the responsibilities associated with buying and owning a home. When you buy a home, you'll be responsible for more than your mortgage payment each month; home ownership involves paying maintenance costs, applying for homeowner's insurance, and paying taxes and fees. If you're interested in buying a Minnesota condo, the process may be even more complicated. However,you can overcome this initial barrier that may be leaving you feeling overwhelmed - by understanding some basic principles of home buying.

The first thing you need to do is to list all payments attached to your prospective home. You can usually ask your realtor for information regarding average fees, maintenance costs and taxes. Place all information on a digital spreadsheet so you can compare costs for different homes quickly. Arranging all information you gathered in this way will also give you a precise calculation of a home's total purchase price and the monthly costs you have to pay.

Ilyce Glink, author of the book '100 Questions Every First-Time Home Buyer Should Ask' clarifies that buying a home also means you're investing in your local community because you have to pay local community taxes, and other services that you won't have to pay for if you are renting in the same locale.

Next, you'll need to do some extensive research about tax benefits. Home ownership usually does give you several tax advantages over renting, but this will vary significantly depending on your current income and the total amount of real estate property tax you will be paying each year.

If you can work out your tax benefits to include all of your deductions and current income level, you'll have a fairly accurate idea of what the total tax benefit of owning a home will be for your particular situation. It may be a good idea to work with an accountant or financial advisor for assistance in this area.

Owning a home must be seen vis-a-vis your long-term plan. You need to determine how long you intend to stay on one location. If you embrace a mobile lifestyle then you are better suited to rent a home instead of buying one. Renting allows anyone to move from one location to another easily. You can rent a home on a per year or even per month basis and be free to move as you please.

If you're not feeling settled in a particular city or neighborhood, buying a home may be causing a lot of anxiety. Make some solid decisions about where you want to settle and where you're willing to relocate to in the long-term so you can make the best decision about your new home.

Author and Realtor Alexandria P. Anderson helps clients to find and purchase Minneapolis Townhomes as well as Townhouses in Minneapolis in Minnesota.

How To Search For Your Ideal Home As A First Time Home Buyer

Finding the best when it comes to owning a house doesn't have to be that difficult a process as you can now search through online listings. Home search is made simpler with the advent of online resources because in just a few clicks of the mouse -you may choose the home with all your desired features and amenities.

Defining exactly what you want is another advantage that can be provided by online MN real estate listings. Most of the time, people are bothered by the fact that they are not sure what home styles or designs they want, but it may help you in determining what you need when you browse the Internet for online catalogues. First time homebuyers may begin their search by using accredited online listing services like Realtor.com, according to the authors of 'Questions Every First-Time Home Buyer Should Ask'. Narrowing down your search is easier since these websites have complete listings of neighborhoods and homes with pictures, video presentations, and many other visual aids.

In essence, you can have all the info you need and print them out for future reference. Another great resource are search engines and websites like the ones managed by several leading national chains namely Coldwell Banker, Re/Max and Century 21. You can also contact realtors whenever the need arises with individual offices regularly updating their databases of listings and contact information.

Moreover, online resources like Realestate.com has up to date MLS listings and provides street views of homes. Listings can be located by city and state, zip code or MLS number. If you need more data on home sales prices, crime rate, commuting, or weather in your desired location - you can check their 'Local Community Information' bulletin.

Websites like the ones previously mentioned makes your exploratory research less daunting, and allows you to you find the best deals or be updated with the current listings. You are having an essential information with you aside from the Minnesota real estate agent that you will consult with eventually. In addition, your area's local library is a good place to search for listings on real estate. It's even better if the local library has its online counterpart where you can practically log for your search, anytime, anywhere. However, if there is no available online listing, you can take your time browsing the in-house database of the library. But you have to be cautious when using this because you might be searching for data or information that are no longer updated or relevant.

Despite the fact that the Internet or online resources have become a big help in home searching, you still need the assistance of a real estate agent when actual visit to the property commences. Drilling down local listings and defining your home preference according to your style and personality are major benefits in using online searches. And finally, you can benefit from all these if you use regularly updated resources in your searches.

Key Things To Consider With New And Existing Homes

Buying a brand new Minnesota home as a first time home buyer is an attractive proposition for most; you get to move into a completely new living space with brand new amenities and don't have to worry about maintenance and renovations for at least the first year.

However, a brand new home can be significantly more expensive than an existing home and you don't always know what to expect if you're one of the few homes in a growing neighborhood.

Comparing the strengths and limitations of each scenario helps in coming up with the best decision for your home buying; the following are questions you must keep in mind when you begin finding your new home.

1. How much extra are you willing to pay for a new home? A brand new home is priced at a premium because of the 'newness' factor; you'll be the first person to use the bathroom and kitchen appliances, will be walking into freshly carpeted rooms, and making the most of the freshly painted walls.

2. Do you care for resale value? Existing homes can have slower appreciation than newly-constructed ones, as explicated by Ilyce Glink (writer of the book '100 Questions Every First-Time Home Buyer Should Ask'). When you have plans of selling your home in the near future, it may be a good idea to have a brand new home because it's market value is higher and you can profit at a larger scale from it.

3. Are you the type of person who can adapt well? The construction of new homes rapidly increases at a certain time, thus, being a new homeowner in an area may require knowing more people in the neighborhood before having a full knowledge about the whole area. Two important factors necessary in a household of small children or elderly are safety and security, you can discover your options to ensure that your house is safe and secure all the time.

4. Do you want to invest time and money to renovate a home? Existing homes can appreciate tremendously in value if you have the time and resources to invest in renovations and maintenance. If you're looking for a long-term investment that can generate a high profit in a short period of time, buying a 'fixer upper' may be your best home buying strategy.

5. Which do you prefer, a primary residence or an investment? Many younger MN first time home buyers are looking for investment properties that they can fix up and sell quickly to turn a profit. Mature home buyers are more likely to be in the market for a primary residence since they want to settle down and establish themselves in the neighborhood. Identify your goals beforehand and decide what you think will give you more benefits.

Once you have decided and thought about the amount you are willing to spend for your new home, its about time to choose between an existing or a new home. These questions may all be helpful as you pick the best option suited to your budget and future plan.

Get Your Loan Pre-approved And Pre-qualified With These Simple Steps

One of the most important steps to home buying involves getting the right loan amount for your ideal  MN property. There are several ways you can get prequalified to purchase a home and preapproved for a home loan, and it's generally a good idea to check your credit report before approaching this step. A prospective lender will be reviewing your credit report and other financial details in great detail as you set the prequalification or preapproval process in motion, and you can obtain a free credit report from any of the three major credit bureaus to check it for errors.

Have your credit records immediately cleared if you notice any discrepancies in it and ensure that you keep intact all proof of communication with the credit institution. When all these have been settled, it's now easier to proceed with your homebuying experience; the following tips are important in the prequalification and preapproval of your loan:

1. Do a research on various mortgage program via the Internet. There are many online resources where you can actually see the lists of current interest rates for various loan packages such as LendingTree.com and Bankrate.com. An initial step would be to look at some options or better yet, submit your personal information for sample or preliminary review. In just a few days, a loan representative may communicate with you and guide you along the way.

2. Approach your area bank. Most people turn to a mortgage loan officer at their bank to obtain a prequalification letter or preapproval status in person. Ilyce Glink, author of '100 Questions Every First Time Home Buyer Should Ask' explains that this process can actually take longer than the online process. However, some people prefer the face-to-face communication and will be more comfortable going to the bank in order to get things started. However, you will be receiving the same type of service either way.

3. Dial the telephone. Another option you may try is transact your loan prequalification over the telephone, instead of online or bank methods. Some lenders offer this kind of service and all you have to do is ask the local bank for the number so you can give or submit your personal details through the phone.

4. Try a national lender. National lending companies such as Countrywide home loans and Bank of America also offer online services and over-the-phone prequalification and preapprovals, giving you more options for your future loan. Visit these lending companies' websites to learn more about current rates and send in your information to become prequalified for your loan.

5. Use an aggregator website. This is helpful especially when you need a website that has rates and services from different lending institutions yet requires you to send your info only once, or if you experience difficulty choosing between banks and financial institutions. You have the freedom to select from a number of packages once you have sent in your personal details.

Ultimately, homebuyers need to get prequalified and preapproved for a home loan first before the actual process is done. The abovementioned resources are helpful tools in finding the best deal for your mortgage and getting started.

About the Author: Alexandria P. Anderson is a Lake Minnetonka real estate agent that helps people to find and purchase Lake Minnetonka homes and properties for sale in the Twin Cities of Minnesota.