Success Keys for Every Real Estate Buyer

By
Real Estate Broker/Owner with Cornerstone Business Group Inc 0225086119
https://activerain.com/droplet/4SYg

Success Keys for Every Real Estate Buyer

There are success keys for every real estate buyer. It doesn't matter if you're an investor, first-time buyer or a seasoned homeowner. Getting the best deal possible starts with knowledge.

Knowledge is power for every real estate buyer

Know the numbers.

  • What did the seller pay for the property?
  • How long ago did he buy the property?
  • Has the seller refinanced during his ownership?
  • Did he take cash out if he refinanced?
  • What do neighborhood or area comps tell you about the list price?
  • How many days has it been on the market?

Neighborhood trends every real estate buyer needs to know

What is the neighborhood trend? I recently sold two properties in neighborhoods where I Real Estate Buyersaw new trends forming. I listed my properties 10-15% above the most recent sales, and I was able to push the neighborhood trend up about $10000 in each case.

What are the trends? Any skillful Realtor can find that information with a simple multiple listing service search and a little math. Knowing the neighborhood trend helps you understand the list price.

If the list price is well above the trend, you may have a seller who is trying to recoup years of investment in the property. It may also be a seller who has been underwater and finally has an opportunity to make a little money or break even. A lot of American homeowners suffered significant losses after the September 2008 real estate market collapse. Many held on to their properties in hopes of being to unload them without ruining their credit or without bringing money to the closing table.

What is the trend in the neighborhood? If the trend is up, you may have to pay a little more. If the trend is flat and the price is higher, you may want to move on to a better deal. Every real estate buyer needs to know the trends.

As a real estate buyer, always be ready to buy.

One of the most important and necessary keys to your real estate buying success is financing. If you're not paying cash, you should stay on top of your finances and always be ready to make an offer. Some deals appear out of nowhere, and you've got to be ready. What can you do?

  • Know your credit score. Knowing you credit score is important for a myriad of reasons, but just know that a lender is going to look at that early in the process.
  • When you're on the hunt for a property, don't expand your debit. Pay down credit cards, don't make new debt, pay your debts on time and don't open new Real Estate Buyeraccounts. The only exception is if you don't have adequate credit for a lender to make a decision. Make sure you have some evidence of a credit history, such as, utility accounts, cell phone account, etc.
  • If you're paying cash, have a bank letter showing that you are capable. Keep it updated and on file for such spur of the moment opportunities.
  • Keep your financial statement up to date and keep a copy at your preferred lender's office. Update it quarterly and make sure your lender gets a fresh copy.

Establish financing relationships

During the 1990s, I was buying a lot of rental properties. I kept my financial statement up to date all the time. On one occasion, I walked into the office of a local bank president. I handed him my financial statement and a listing I was interested in buying. I told him what I was willing to pay. He reviewed my statement and asked, "When do you want to close?" We closed in two weeks. I had established a relationship with the bank, and I kept them up to date on my financial condition.

It's important to keep that information up to date so you can move quickly when an opportunity presents itself. There are more keys to success for real estate buyers, but these three will get you started. And, when you're ready to buy, give your Cornerstone Business Group, Inc., agent a call. We are your local real estate sales pros, and we are experienced and successful real estate investors.

Success Keys for Every Real Estate Buyer

 This post was originally published at www.winchestervarealestate.com; Success Keyes for Every Real Estate Buyer. #cornerstonehomesales, #winchesterhomesales, #mikecoopersellshomes, #yourlocalrealestatesalespros. 

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Rainmaker
2,650,814
Myrl Jeffcoat
GreatWest Realty - Sacramento, CA
Greater Sacramento Real Estate Agent

Knowing the numbers is a critical component to the homebuying process.  While some would say that what a seller paid for a home, and/or whether he refinanced or not is irrelevant, it helps to know where the seller is coming from. 

Jul 05, 2016 04:03 AM #1
Rainmaker
654,221
Peter Mohylsky, Beach Expert
PrimeSouth Properties - Santa Rosa Beach, FL
TOP LISTING AGENT ALONG THE BEACH

These are all great ideas for any agent, old or new. Spending  time learning the market and more importantly changes in the market is very important.

Jul 05, 2016 08:21 PM #2
Rainmaker
3,062,040
James Dray
Fathom Realty - Bentonville, AR
Exceptional Agents, Outstanding Results

Good morning Mike.  Timely information while around here it is still a sellers market.  

Jul 05, 2016 08:39 PM #3
Ambassador
4,045,153
Kathy Streib
Room Service Home Staging - Delray Beach, FL
Home Stager - Palm Beach County,FL -561-914-6224

Well said, Mike.  Years ago when the market was at a low point in Houston, the smart investors/developers were getting their ducks in order to purchase properties at now well below market prices. 

Jul 09, 2016 04:50 AM #4
Ambassador
4,045,153
Kathy Streib
Room Service Home Staging - Delray Beach, FL
Home Stager - Palm Beach County,FL -561-914-6224

 

                                               Thanks Mike Cooper 

Jul 09, 2016 10:43 AM #5
Rainmaker
3,770,975
Sheila Anderson
Referral Group Incorporated - East Brunswick, NJ
The Real Estate Whisperer Who Listens 732-715-1133

Good morning Mike. I love the statement thing and your last story. 

Jul 09, 2016 10:21 PM #6
Rainmaker
3,438,993
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

Good morning Mike. Knowing the trends allows you to become a trend setter! Enjoy your day!

Jul 09, 2016 10:29 PM #7
Rainmaker
1,029,723
Kevin J. May
Florida Supreme Realty - Hobe Sound, FL
Serving the Treasure & Paradise Coasts of Florida

Information is always a key component. The more we gather the better the outcome in most cases.

Jul 09, 2016 11:31 PM #8
Rainmaker
957,309
Thomas J. Nelson, Realtor e-Pro, CRS, RCS-D, Vets
Big Block Realty 858.232.8722 - La Jolla, CA
& Host of Postcards From Success Podcast

Great advice overall. The Knowledge is power for every real estate buyer is great criteria for a flat or buyers market, but likely is less useful in a multiple offer seller's market, since your leverage is mostly removed. But, it can still help you to understand that market and how to approach the seller.

Know the numbers. (great list)!

  • What did the seller pay for the property?
  • How long ago did he buy the property?
  • Has the seller refinanced during his ownership?
  • Did he take cash out if he refinanced?
  • What do neighborhood or area comps tell you about the list price?
  • How many days has it been on the market?
Jul 10, 2016 01:01 AM #9
Ambassador
4,123,663
Jeff Dowler, CRS
eXp Realty of California - Carlsbad, CA
The Southern California Relocation Dude

The principles remain the same despite shifts in the trends, the percentages and the numbers. There's a lot of valuable thinking here for any type of buyer.

Jeff

Jul 10, 2016 01:22 AM #10
Rainmaker
1,504,491
Kat Palmiotti
406-270-3667, kat@thehousekat.com, Broker, Blackstone Realty Group - brokered by eXp Realty - Kalispell, MT
The House Kat

Yes, these are good keys for buyers. Having the data is the main one!

Jul 10, 2016 01:35 AM #11
Rainmaker
1,054,509
Sam Shueh
(408) 425-1601 - San Jose, CA
mba, cdpe, reopro, pe

Always have a preapproval letter ready if one sees his dream house.

There is no time to waste when there is competion.

Jul 10, 2016 02:20 AM #12
Rainmaker
2,147,814
Sharon Tara
Sharon Tara Transformations - Portsmouth, NH
New Hampshire Home Stager

Congrats in being featured on Kathy's post! It's excellent advice for all buyers!

Jul 11, 2016 09:23 AM #13
Ambassador
4,302,956
Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

Mike Cooper - it is good to know what the sellers bought the home at - however, that is the indication of then market.... just my two cents.

Jul 11, 2016 02:29 PM #14
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Rainmaker
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Mike Cooper, GRI

Your Neighborhood Real Estate Sales Pro
Winchester has a place for you! Call me.
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