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10 Home Buying Secrets!

Buying Secret #10: Get a pre-approval first!

There’s a big difference between a Rocky Mountain House homes buyer being pre-qualified and a buyer who has a pre-approved mortgage. Anybody can get pre-qualified for financing. Getting pre-approved means a lender has looked at all of your financial information and they’ve let you know how much you can afford and how much they will lend you. Being pre-approved will save a lot of time and energy so you are not running around looking at Rocky Mountain House houses you can’t afford.

Buying Secret #9: Keep Your Money Where It Is
It’s not wise to make any huge purchases or move your money around three to six months before buying a new home. You don’t want to take any big chances with your credit profile. Lenders need to see that you’re reliable and they want a complete paper trail so that they can get you the best loan possible. If you open new credit cards, or buy a lot of big-ticket items, you may have a harder time getting a loan.

Buying Secret #8: Know your Boundaries
It’s absolutely essential to get a survey/Real Property Report (rpr) done on your property so you know exactly what you’re buying. Knowing precisely where your property lines are may save you from a potential dispute with your neighbors. If the sellers don’t have a current rpr you can request one be done, or discuss title insurance to go with whatever existing survey they have to offer you some extra protection.

Buying Secret # 7: Don’t Try to Time the Market
Don’t obsess with trying to time the market and figure out when is the best time to buy. Trying to anticipate the housing market is impossible. The best time to buy is when you find your perfect house and you can afford it. Real estate is cyclical, it goes up and it goes down and it goes back up again. So, if you try to wait for the perfect time, you’re probably going to miss out.

Buying Secret # 6: Rocky Mountain House Houses–Bigger Isn’t Always Better
A lot of people are drawn to the biggest, most beautiful house on the market. But bigger is usually not better when it comes to houses. There’s an old adage in real estate that says don’t buy the biggest, best house on the block. The largest house only appeals to a very small pool of potential buyers and you never want to limit potential buyers when you go to re-sell. Your home is only going to go up in value as much as the other houses around you. If you pay $500,000 for a home and your neighbors pay $250,000 to $300,000, your appreciation is going to be limited. Sometimes it is best to is buy the worst house on the block, because the worst house per square foot always trades for more than the biggest house.

Buying Secret #5: Consider All Costs
The difference between renting and home ownership in and around Rocky Mountain House is the sleeper costs. Most people just focus on their mortgage payment, but they also need to be aware of the other expenses such as property taxes, utilities, and homeowner-association dues. New homeowners also need to be prepared to pay for repairs, maintenance, and potential property-tax increases. Make sure you budget for all costs so you’ll be covered and won’t risk being “house broke.”

Buying Secret #4: You’re Buying a Rocky Mountain House Home – Not Dating It
Buying a house based on emotions is just going to break your heart. If you fall in love with something, you might end up making some pretty bad financial decisions. There’s a big difference between your emotions and your instincts. Going with your instincts means that you recognize that you’re getting a great house for a good value. Going with your emotions is being obsessed with the paint color or the backyard. It’s an investment, so stay calm and be wise.

Buying Secret #3: Inspect
Would you buy a car without checking under the hood? Of course you wouldn’t. Hire a home inspector. It’ll cost between $500 and $800 but could end up saving you thousands. A home inspector’s sole responsibility is to provide you with information so that you can make a decision as to whether or not to buy. It’s a great way to get an unbiased third-party opinion, and there are many trusted inspectors in the Rocky Mountain House and Clearwater County area. If the inspector does find any issues with the home, you have a chance to re-evaluate your purchase. It’s better to spend the money up front on an inspector than to find out after closing date that there are expensive repairs needed to the home.

Buying Secret #2: Know the Neighbourhood
Before you buy, get the lay of the land – drop by morning noon and night. Many homebuyers have become completely distraught because they thought they found the perfect home,  only to find out the neighbourhood wasn’t for them. Drive by the house at all hours of the day to see what’s happening in the neighbourhood. Do your regular commute from the house to make sure it is something you can deal with on a daily basis. Find out how far it is to the nearest grocery store and other services.

Buying Secret #1: The Secret Science of offer to purchase
Your offer to purchase should be based on two things: what you can afford and what you and your real estate associate really believe the property is worth. Make your offer something that’s fair and reasonable and isn’t going to totally offend the seller. A lot of people think they should go lower the first time they make an offer. It all depends on what the market is doing at the time. You need to have your agent show you what other homes have sold for in that neighborhood in recent months. Sellers respect an offer that is an oddball number and are more likely to take it more seriously. A nice round number sounds like every other offer out there. When you get more specific the sellers will think you’ve given the offer careful thought.