Making a Real Estate Offer: What is the Purchase Offer?

Due to the money involved, a real estate transaction is often the most complex deal that most people will ever face. There’s plenty of paperwork to complete, negotiations to settle, rules and laws to comply with etc. Once the ‘honeymoon phase’ of home searching ends, it’s time to suit up and get down to work before someone else beats you to your dream property.

You can’t buy a house without first making a formal offer on it. In the state of Oklahoma this offer is made in writing on a standard contract form called the Oklahoma Uniform Contract of Sale of Real Estate.  It is a legal document that informs the seller about the price you’re willing to pay for the home. Once you’ve decided on a property to buy, your real estate agent will fill out this contract form and you will sign it. This is now an offer and it is then submitted to the seller or their agent. The seller can then choose to accept, counter, or reject your offer to purchase the property.  Once the seller accepts your offer by signing this contract, it is said that the buyer and seller have come to a meeting of minds and an official agreement has been made between buyer and seller.  That agreement is called a real estate sales contract. Continue reading “Making a Real Estate Offer: What is the Purchase Offer?”

Three Useful Tips for Successful Long-Term Real Estate Investments

Homeownership is a goal for many Americans. Some plan to own their house for a few years, while for others, it’s a lifetime investment. If you plan to cherish your home for the long term, here are tips to help you make the most out of your real estate purchase.

Think ahead

Although this part is practically common knowledge, few real estate investors know how to execute their plan properly. A real estate agent can help you create and execute a plan for your investment in the neighborhood you’re interested in. Long-term strategies may include renting and saving at the early stages, and with that said, it’s important for you to discuss all possibilities with an agent. Ask your realtor how well your home would sell after a few years just in case you need to move again.

Know your budget

Real estate involves a significant amount of money, so you need to be diligent in planning and budgeting to ensure all that monetary investment doesn’t go to waste. Although you don’t have to be a finance genius to make your budget work, you need to practice utmost discipline and know the limit of your budget from the very start. Try to work out what your expenses would look like if you live in that home; don’t just focus on mortgage payments.

Know the requirements

When investing in real estate, you will need to furnish certain documents to legitimize the transaction. Go over zoning, title issues and other restrictions with the seller. Get a Federal Tax Identification Number. It would be wise to go over your requirements with a real estate professional to know if your papers are complete and in order.

 

Sources:

Real Estate Investment Tips: Things to Do and Learn in Order to Avoid Heartbreaks in the Business, RealtyToday.com

Important Considerations to Have when Looking at Real Estate Options

House-hunting is such a fun and exciting time despite what other people may say about it being a taxing and overwhelming activity. Finding that perfect piece of real estate you can finally call your own is always a cause for celebration.

Aside from the style of the house’s architecture and the size of the plot of land it sits on, however, there are various other considerations that must be made before you make a decision.

Continue reading “Important Considerations to Have when Looking at Real Estate Options”

Lessons in Real Estate: How to Become the Most Attractive Home Buyer

How has the house hunting been going so far? Does someone else keep beating you to a property that you’re interested in? Then you understand how competitive the process can get. What you need to do is separate yourself from other real estate buyers, and on that note, here are three steps to make you more memorable in the eyes of sellers.

Pay in cash

You’ll have a better chance of catching the seller’s eye if you pay in all-cash. If this is not possible, get pre-approved and have the approval documented in pre-approval letter. This tells the seller that you have the full capacity to pay for the house with your finances, and that he will have less of a problem dealing with you. Additionally, express your willingness and ability to put a hefty down payment on the house, somewhere around 35 to 40 percent. With this, the seller will know that you’re serious about buying his property.

Research, plan, and decide aggressively

The U.S. currently experiencing a seller’s market, in which inventory is low and housing prices are high. In such a market, buyers need to stay aggressive with research and planning and be decisive whenever an opportunity to buy presents itself, because you may not have another chance.

Be reasonable

Great buyers are easy, flexible, and responsive to work with, especially during negotiations. Don’t ever give the seller a hard time. He may be facing many offers, so you’ll only diminishing your chances of being chosen if you’re hard to deal with. If you can confirm multiple offers, be prepared to compete and have a good counteroffer.

It pays to work with a real estate agent when you’re house hunting. Although you may have to pay more upfront, the speed at which your agent can find you the right house—and the significant savings he can fetch you in the process—can make the investment more than worthwhile.

Sources:

How to be the Most Attractive Homebuyer, foxbusiness.com

How to Be the Most Attractive Home Buyer in a Seller’s Market, consumerreports.org

How to Avoid Experiencing Buyer’s Remorse in Real Estate Transactions

It’s not unusual for homebuyers to experience buyer’s remorse after purchasing a house—some even feel it immediately. Oftentimes, the cause of this remorse is the discovery of a thing or two about the home that can either be too costly or utterly impossible to fix.

Since home buying involves a huge investment, buyer’s remorse can be devastating to a buyer, and as such, it needs to be avoided at all costs. Here are some of the steps you can take to avoid buyer’s remorse and enjoy your new home more.

Buy based on ‘need’ and not ‘want’

One of the most important realizations you can have about buying a home is that it’s practically impossible to find a property that has everything you want. However, it’s very much likely that you can find one that has everything you need. Make a list of all your needs and wants when buying a home. Keep going back to your list at every step of the home purchase.

Get to know the property inside and out

Avoid getting a home that you’ve seen only once. You need to view and review every part of the house to ensure it’s the right one for you. Likewise, check the property’s proximity to transportation, schools, parks, and highways. A property that doesn’t provide easy access to important facilities is one of the greatest causes of buyer’s remorse.

Stick to your budget

The home buying process can come with a lot of additional and hidden fees, and if you’re not careful, you can easily find yourself over budget, paying more monthly dues than you can afford. It’s critical to know all the expenses involved in owning a home before finalizing the purchase, and to keep monthly real estate expenditures below one-third of your net income.

Real estate agents can help buyers in reminding buyers of their original plan when looking for homes for sale.

Sources:

How To Avoid Home Buyers’ Remorse, Forbes.com

How to Avoid Home Buyer’s Remorse, thebalance.com

Four Smart Steps to Take Before You Decide to Invest in Real Estate

Buying a house can be an emotional experience, but in order to get the property that you truly want, you need to be smart. Even if you’re not paying cash upfront for the property, there are many other ways to ensure that the seller considers you over other interested parties. Apart from listening to your agent’s advice, you should also consider taking the following steps before you invest in real estate.

Clean up your credit

Your credit will affect whether or not you’ll get a better mortgage rate. Remember that there are other people interested in the same properties you’re looking to buy, so it’s a good idea to be in a better financial standing than the rest. You can check for errors on your credit reports for free by requesting a report from any of the three credit reporting agencies in the country. In addition, you should strengthen your credit score before applying for a mortgage. Generally, a credit score of 700 to 750 will get you the best loan rates.

Save up

Sellers usually favor the buyer who can offer a bigger down payment on the property. To make sure you have the upper hand over other buyers, save up enough cash to be able to offer more than the minimum down payment. Additionally, you should save up for the closing costs and loan fees, as well as have cash for up to at least three to five months of mortgage payments.

Get pre-approved

An underwritten pre-approval from a lender is almost as good as cash–something which will definitely give you a leg up on the competition. Getting pre-approved means that the mortgage lender has already looked into and verified your credit, assets, and income.

Consider other options

Admittedly, a 20% downpayment is a sizeable amount, and it’s possible you might not have that kind of cash saved up. You can look into alternative mortgage options to help you acquire the property you want. The Federal Housing Administration, for example, allows you to put a downpayment of just 3.5%, as well as work with buyers that don’t have the ideal credit score of 700 to 750.

 

Source/s:

6 Smartest Moves for First-Time Home Buyers, TIME.com