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 saw 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 accounts. 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.