How Not To Pay Too Much For Your Home in Hawaii
The process of buying a home can be an emotional time, whether you are buying your first home or your third. Each time is just as stressful as the last. Do not become pressured into buying a house just because you want the process to be over. Believing that you have made the right decision in the end will help you to sleep better at night.
#1 Keep a Detached Attitude
Keeping a detached attitude while searching for your perfect home can help ground you in reality. Everyone has a picture of their ideal home etched in their memories, but that perfect home may be way out of your price range. If you create your search with a more practical state of mind, you will have a better chance in finding the right home to fit all of your needs.
Developing a balanced list of sensible and practical needs will help you to find a perfect compromise while choosing your dream home. Practical and sensible can include adequate space, good neighborhood, or a garage. Impractical can include a tennis court or a large swimming pool. These are desires that can be added to your new home once you have made more money through the years. You will make better decisions when you are in a rational state of mind.
#2 What is a serious buyer?
A serious buyer is someone who is ready to make a commitment. When they are ready to sign the papers, they are showing that they want that home. Sellers will more apt to give you a permanent price that will not change after you make your decision.
#3 Have the proper people in place
Having the proper people in place while buying a new home will create less chaos when each person knows what their job is. From the bank lender, down to the inspector, all of these people will be detrimental in the process. Each person will have an important part when you are buying a home.
#4 Communication is Key
A Realtor can only help you if they understand all of your needs. Communicating with them about the type of house you are looking for, the price range you are looking at, and the neighborhoods to look at will give them more ammunition when they start their search.
#5 Finding the best neighborhoods
Finding the right kind of neighborhoods that a person wants to live in is just as important as the house itself. No one wants to live around gang activity and drugs. If a person ends up in a bad neighborhood, they could end up selling their house before they are ready just to get out of danger. Also, finding homes that are near schools, public transportation, and where a person works is much more desirable than having to commute for miles.
Having great questions for your Realtor will help to understand what is most important when searching for a house. If a neighborhood has a lot of barking dogs in them, a person may decide that neighborhood is not right for them. Being kept awake until all hours of the night can make a person regret the decision to buy a house. Buying a house should be the best decision of your life, not the worst.
#6 Learn from your Realtors example
Seeing how your Realtor work can help you to learn by their example. You will learn more about what is involved in buying and selling a home buy listening and watching what your Realtor does. Realtors know the most important aspects of buying a house are to most people because they have been doing the job for many years. Just knowing that you have an experienced Realtor that can do all of the ground work, can free you up to observe what is going on around you.
#7 Watch out for major flaws
Most people don't even realize that major flaws in a home can end up costing them more money. What looks like a small minor problem can actually be a huge problem. Knowing what is an easy problem to fix, and what is a major one will protect you from losing anymore money than you already have. Smaller flaws like peeling paint, worn out carpet, or the wrong color for wallpaper are easy things to repair. These type of flaws can be a big negotiating factor to the seller. You can negotiate the price down by pointing out these smaller flaws.
Larger problems cannot be easily repaired. In fact, they could end up becoming a huge headache that will cost large amounts of money to repair. These major flaws are cracks in the ceiling, water spots, and a faulty electrical wires. Plumbing can also become a costly endeavor if there are a lot of flaws with it. These type of flaws are harder to negotiate. In fact, it might be better to pass this type of home up for greener pastures.
#8 How an inspector can help to catch major flaws
The cost of an inspector will not cost as much as repairing a home with major flaws in it. The peace of mind that you will receive after a home gets a clean bill of health will put a smile on your face and your purse strings. An inspector can find all of the flaws that come with plumbing, electrical, and foundation problems.
#9 What is a fixer upper and what is a major headache
A fixer-upper can be purchased for a lower price than most houses on the market . Repairing a house and then flipping it for a higher profit is a great way for people to make money. But it is not considered a fix upper when there is major damage that can end up costing you more than what you originally paid for the property. People who buy a fixer upper and then see the major flaws after they buy it, without doing the proper inspections, will end up with a headache instead of a potential money maker.
#10 Considering how your life will be ten years from now
Looking into the future will help when thinking about the kind of house you want to buy in the present day. Taking an accurate look at the way you live now, will help you to consider the future that you will eventually have when it comes to having children and pets.
#11 When should a person act when they make their decision
A person may wonder when it will be the right time to act once they make their decision about the right home for them. The best answer is to act as quickly as you can, without feeling pressured. When a person knows what they want, they will usually not change their mind. So making the proper arrangements right away will keep the house from selling to another buyer.
#12 Who works for who?
Getting an agent who is on your side instead of the side of the seller is crucial when buying a home. If an agent is working mostly for the seller, then they are going to make decisions that help the seller instead of you. If you end up buying a home that was not the actual one that you wanted, it could be because the Realtor was working on the side of the seller instead of making sure that the house was everything that you needed.
#13 Knowing what a fair price for a home should be
There are certain reports that a Realtor has access to that can give an accurate price range for a home. Getting the most accurate and fair information on prices of homes is important when deciding what will fit in your budget. Ask the Realtor to draw up a report that gives this information. You will look more knowledgeable to the agent and the seller when you know what you are talking about.
#14 Getting a good feel for the seller
Finding information that can help a person in the negotiation process is the difference in paying less or paying more. Listening to what a seller is telling you about their reasons for selling a property can work to your advantage. Knowing that a seller is wanting to sell their property fast, will help you to get your foot into the door of your new home much faster than finding out the house is going to sit on the market for months.
#15 Keep information to yourself
Sharing information with your Realtor and sharing information with a seller are two different animals that should never meet. Providing too much Information that a seller can work against you if the seller uses that during the negotiation process.
#16 Don't be pressured
There should be an equal balance between moving fast on a home, and being pressured to move faster than you are ready for. Sellers who are anxious to get rid of their homes do not have your best interests in mind when it comes to making sure that you are happy with your choice. The home will eventually sell to someone, just make sure that it is not you if it is not the right fit for you
#17 Learning how to negotiate
Learning how to haggle can be a depreciating endeavor if you have no idea how to do it. Sometimes it is better to leave it up to the Realtor if you are not good at negotiating. Some people are great at it, and others are uncomfortable with it.
#18 Don't fall into a trap
Bidding wars can be a trap that many people can fall into when a seller is using unsavory tactics to try to get you to buy. Stating that they will increase the price if you don't act right away is not a tactic that any seller should use. It will make them look bad and it will make buyers weary of ever buying anything from them.
#19 Keeping sellers honest
Sellers are under legal obligation to expose all property defects to a buyer. Making sure that you are getting all of the correct information on a property before signing any documents.
#20 Understanding the costs
Added costs will always come with buying a home. Doing the proper research on how many more costs will be added to the cost of the home will protect you from paying more than you can comfortably afford. The extra costs should be in with the rest of the costs of the house. Adding other expenses that were not disclosed to you until after a sell could end up financially harming you.