Real estate is a long term asset that offers tax advantages and a way to hedge against inflation. Real estate generally increases in value. Overall, real estate can with minimal risk, generate positive returns. And everyone needs a home or somewhere to live.
Develop a plan
Buying a new or used home, especially on the day you move in to it, is one of the most exciting and fun things in life. It is likely the biggest financial decisions a family or individual can make in life. The real estate market is very competitive with large comitments of time in money. So as you prepare to buy a home and jump into the real estate market, plan, plan, plan!
Buying real estate has never been easier and opportunites abound. Mortgage rates and mortgage options for new homes in the real estate market currently excellent. In addition, the tax advantage available to homeowners in the real estate of deductible mortgage interest make home ownership a great opportunity. Remember we all need a place to live.
Realisticly analyze your situation. Factors to consider are:
Do you own a home?
Are you renting and what is the cost of breaking the lease?
Do you travel making a condominium more desirable than a houce (less time in outdoor maintenance)?
Do you have children or plan on children in the near future? Having a home with a yard may be a priority.
Is a garage important to you?
What kind of neighborhood are you looking for?
Access to freeways.
Home location. Is commuting through rush hour traffic an issue to you or would you rather walk to work.
Homes for sale
Brainstorm and make a list of the top ten to twenty things that are important in a new home. As you search the real estate market, you will likely find a home that covers most of your list. When you decide on a home, you will be compromising in some way. When you list the qualities you are looking for in a home, you know in advance what you are giving up. Focus on the qualities that are a priority to you.
Finding a real estate agent
Most real estate agents are honest, hard working and ethical individuals. However, finding a real estate agent that fits this criteria and who seems to “click” with you personality-wise intially does mean it will be that way in the long run. So take the time to talk to several real estate professionals. Also, any real estate agent you choose should have access to the MLS system in your area. This will give you the opportunity to see the entire local inventory. And begin with the end in mind.
Before entering into a contractual agreement with any real estate agent:
Understand what the exit strategy with the real estate agent is going to be if the business relationship does not work.
Understand when you will owe the real estate agent a commission.
Outline your expectations of the real estate professional.
Develop milestones for your expectations so you have concrete measures of performance.
Have the real estate agent help you understand your expectations and develop milestones. Any good real estate professional can do this and will be able to assist you. This helps both sides in getting you to your ultimate goal – your new home.