Buying a home is one of the biggest purchases most people will make in their lifetime. It is an endeavor that is known to be a sound investment, but one that shouldn’t be taken lightly. When you are getting ready to buy a house, it can be exciting to shop around. If this is the first time you have bought a residence of your very own, you may not know the ins and outs of buying property yet. Central Texas Auction Services would like to share some tips to remember when buying residential real estate.
Real Estate Bidding War Strategy Basics; How to Win on a House
When a house is placed on the market well under market value, the seller is more than likely looking for a bidding war. When you find yourself in this position, you might feel like you need to act quickly and with a strong offer in order to win the house. The problem with a bidding war is the fact that you could end up spending too much for the home. When buyers feel pressure, it can cause them to make an unwise financial decision. Come up with a maximum number based off of research and comparable homes in the community and don’t go over that figure.
Go Home Loan Shopping with a Mortgage Lender Early
If you are looking for a home in an area that is booming, you may find that as soon as you get interested in a home, it sells right out from under you. For this reason, you shouldn’t wait to get going on the loan before you even go house hunting. Get the process going to help you understand your budget as well. This will allow you to act fast if needed.
Beware of Hidden Costs Involved in Buying a House
This is a big one. When you are buying a home, you may think that the price of the house is just that. You shouldn’t have to pay more right? Wrong. You need to set aside $5,000-$7,000 to help cover other fees and costs. You may need to pay for things like home inspections, property taxes, appraisal fees, title and home owner’s insurance. Depending on the amount of money you have for a down payment and your credit history, you could have to buy PMI or private mortgage insurance as well. There are always costs that come up that you should plan for.
When Purchasing Residential Real Estate, Do Your Research
Before you start looking for a home, search for neighborhoods that are rapidly growing. If a community has many businesses and restaurants, maybe even a transit system of some sort, it is a good sign that the community is a stable one.
Don’t Wait for the Bubble to Burst!
As the cost of housing rises, it may be tempting to say you will just wait for the bubble to burst to buy a home. The real estate bubble of 2007-2008 was a big one and it did burst, but most real estate cycles don’t have the same outcome. They will more than likely slowly move up and down. There will always be peaks and valleys when it comes to real estate.
Buying & Selling Homes in Belton, Killeen, Temple & Central Texas
If you are getting ready to buy a home, a great place to find one is at a real estate auction. Central Texas Auction Services has the proper protocol and procedures to ensure you get your home at fair value. Call us for more information on our upcoming auctions.