Joseph D. Federico's Blog
Whether you are buying your first home or are upgrading, consider buying a larger home. Even if you are just planning on starting a family, a larger home allows you to grow into it. And, you don’t have to put up with the pesky chore of moving when it’s time to go bigger. If you are upgrading, you should still go bigger than what you think you need because you’ll eventually run out of space. As long as you can afford it, going bigger has more benefits than downfalls.
Save Money When Your Family Grows
Instead of trying to sell a home and buy a larger home when your family starts growing, you’ll already have the larger home. If you plan on two kids but often have relatives or friends visit overnight, you’re better off with the extra bedrooms: one for each child, the master suite and at least one guest bedroom. When you have more than one guest bedroom, you’ll be able to make one into an office or a library if you decide to work for yourself later in life or if you decide you just want a quiet place to escape to once in a while.
A home with at least one extra bedroom and bathroom commands more money on the market when you decide to sell it. Instead of a three-bedroom, two-bath house, you might consider a five-bedroom home with at least three bathrooms. You’ll get more for a sale than you would for a three-two. While you might pay more for the house, depending on how the market is when you sell, you could see quite a bit more appreciation than in a smaller house.
Generally, larger homes also have larger living spaces in addition to the extra rooms. You’ll have a more spacious kitchen and a larger living room that won’t feel as crowded when you entertain. You might find a new hobby later in life and will have the extra space to accommodate that hobby. And, because you have more space, your home will look less cluttered because you won’t have to “find” room to store your stuff.
Finally, you can get the furniture you want, instead of settling for something just because it fits in your living room. If you’ve always wanted that big-screen TV or even a room with movie theater seating, you can have that when you go bigger.
What You Can Afford
Look at your debt-to-income ratio as that determines what you are able to afford. If you can go bigger, the benefits outweigh the larger utility bills and the amount of extra time it takes to clean. And, look for a house that is on some acreage so that you can create a large outdoor living area and won’t be on top of your neighbors.
In real estate, cash is power. It’s not exactly the amount of money that you have been approved for by a lender. This type of “cash” is what you can pull directly from your account to buy a property on demand. It can be difficult to compete with cash buyers especially in tight real estate markets. Below, you’ll find some tips to help you match up against any cash offers that you may be competing with when you buy a home.
Make Your Offer Look Attractive As Possible
First, you should always have a pre-approval letter from your lender. This lets sellers know that you’re a qualified buyer. You should also get your lender or realtor (or both) to provide some financial information about you along with your offer. This helps to add to the case that you’re a dependable buyer.
Let Things Move Quickly
If you allow your lender to send an appraiser to the property as quickly as possible, this will give you an advantage in the home buying process. You want to reduce the amount of time that it will take to close on the house. That means you should consider cutting down on both the appraisal and contingency time. You could even consider waiving any contingencies if you feel comfortable.
To speed up the process, even more, you should pre-order an appraisal in advance. You can do this before your offer has even been written. It can be difficult to arrange this, especially with larger scale lenders, but it’s always worth a try. Once the offer is written, the lender can relay to the seller that an appraisal has already been scheduled.
You’ll also want to get the inspection done fairly quickly. You only have a short window of time to get the inspection done. The quicker you get this done, the more serious of a buyer you appear to be. You should have the inspector who you’ll use ready before you even put an offer in on a home in order to expedite this part of the process. Usually, inspectors don’t take terribly long to schedule appointments knowing that their clients have short windows to get inspections done.
Make A Strong Offer
Making a good offer could mean paying extra for a home you love in order to compete with cash offers. Spending more money helps to win. Here’s why: Sellers almost always will give a cash buyer a bit more of a discount since they’ll be getting all of the funds up front. If you love the house and plan to live in it for years to come, the extra money you spend will be well worth it.
Write An Offer Letter
An offer letter adds a bit of a personal touch to the number you put down as a buyer. Here, you can tell the seller who you are and why you love the home. It can be emotional to sell a property, but a seller will feel more comfortable knowing that the home is going to someone who will appreciate it.
An open house can be a life-changing event for a homebuyer. If you plan ahead for an open house, you should have no trouble determining whether a residence matches or exceeds your expectations. And if the answer is "Yes," you can proceed quickly to submit a competitive offer to acquire a house.
What does it take to prep for an open house? Here are three open house preparation tips that every homebuyer needs to know.
1. Understand Your Budget
Before you attend an open house, you should find out how much money is at your disposal. Thus, you may want to meet with banks and credit unions to see if you can get pre-approved for a mortgage. That way, you can kick off your home search with a budget in hand.
Although you know that you have only a certain amount of money to spend on a residence, it may be worthwhile to consider attending open houses for residences with initial asking prices that are above your price range. Because in some instances, a home seller may be willing to accept an offer that falls below his or her initial asking price.
2. Create a List of Questions
A home is one of the biggest purchases that a person can make, and as such, it pays to be diligent. If you craft a list of questions before an open house, you can get immediate responses from the showing agent. Then, you can determine the best course of action.
When it comes to an open house, there is no such thing as a "bad" question. As a homebuyer, it is paramount to get as much information as possible about a residence to determine whether a house is right for you. Therefore, if you create a list of questions in advance, you can improve your chances of getting the most out of an open house.
3. Consult with a Real Estate Agent
If you're uncertain about how to approach an open house, you're not alone. Fortunately, real estate agents are available nationwide who are happy to teach you the ins and outs of the real estate market. By doing so, these housing market professionals will make it easy to take an informed approach to any open house, at any time.
A real estate agent will always keep you up to date about new residences as they become available. Also, if you are interested in homes in a particular city or town, a real estate agent will notify you about open houses in this area. And if you need extra help prepping for an open house, a real estate agent is happy to assist you in any way possible.
Let's not forget about the support that a real estate agent provides throughout the homebuying journey, either. A real estate agent will help you submit an offer on a house, negotiate with a seller's agent on your behalf and much more.
Be diligent as you get ready for an open house – use the aforementioned tips, and you can fully prepare for an open house.
A homebuying plan is a must-have, particularly for those who want to enjoy a successful property buying experience. Lucky for you, there are many things you can do to execute a homebuying plan to perfection.
Now, let's take a look at three tips to help you put your homebuying plan into action and achieve the best-possible results during the property buying journey.
1. Establish Realistic Homebuying Goals
As you craft your homebuying plan, it generally is a good idea to establish milestones. That way, you can take a step-by-step approach to go from homebuyer to homeowner.
Of course, it is paramount to set realistic homebuying goals. Think about why you are pursuing a home in the first place, and you can map out your homebuying plan accordingly.
It may be beneficial to hone your home search as well. If you narrow your house search to a select group of cities and towns, you may be better equipped than ever before to streamline the homebuying journey.
2. Maintain Flexibility
Although you may devote many hours to craft an effective homebuying strategy, it is important to remember that problems may arise as you search for your dream residence. Fortunately, if you maintain flexibility, you will be ready to adjust your homebuying plan as needed.
If you have to modify your homebuying strategy, there is no need to worry. Instead, adjust your plan and continue your pursuit of your ideal residence. Because if you are flexible as you search for your dream home, you can minimize stress and boost the likelihood of discovering a residence that may serve you well for an extended period of time.
3. Collaborate with a Real Estate Agent
When it comes to developing and executing a homebuying plan, you do not have to work alone. In fact, you can hire a real estate agent who is happy to help you find and purchase a terrific residence at an affordable price.
By consulting with a real estate agent, you can receive expert homebuying support. A real estate agent knows what it takes to acquire a first-rate home at a budget-friendly price, and as such, will work with you to ensure your homeownership dream can come true.
If you are unsure about where to search for homes, for example, a real estate agent can help you determine where to pursue residences. He or she also can help you get in touch with banks and credit unions so you can obtain home financing. Plus, a real estate agent is ready to help you submit an offer to purchase your dream residence. And if you have concerns or questions during the homebuying journey, a real estate agent is prepared to respond to them too.
For those who want to seamlessly navigate the homebuying journey, you may want to craft a property buying plan. Thanks to the aforementioned tips, you can get the most out of a homebuying strategy and ensure you can quickly find your dream residence.
If you're ready to pursue your dream house, it generally is a good idea to enter the real estate sector with an open mind. In fact, there are many benefits to keeping your options open as you search for your ideal residence, and these benefits include:
1. You may be able to discover a bargain.
As you kick off your home search, it helps to pursue houses in a wide range of cities and towns. Doing so can help you separate your dream home must-haves from your wants. Also, this may enable you to find an affordable residence that matches or exceeds your expectations.
There is no telling whether a real estate market will favor buyers or sellers. The housing sector fluctuates constantly, and a buyer's market today may morph into a seller's market tomorrow.
Luckily, if you maintain an open approach to buying a house, you can remain patient as you search for your perfect residence. Perhaps most important, you can capitalize on homebuying opportunities as they become available and avoid the temptation to overspend on a house.
2. You can move quickly to acquire your dream residence.
With an open approach to the homebuying journey, you should have no trouble moving quickly to acquire your ideal residence. If the opportunity presents itself to buy a great house at a terrific price, you can submit an offer and proceed accordingly.
Of course, you should always think ahead before you submit an offer on any house, at any time. If you put together a competitive offer on a residence, you may receive an instant "Yes" from a home seller. Then, you can seamlessly finalize your home purchase and move into your dream residence.
3. You can minimize stress throughout the homebuying journey.
Buying a home is a major decision, and as such, stress can be problematic throughout the homebuying journey. If you are open to new ideas as you pursue a home, however, you may be better equipped than ever before to purchase your perfect residence.
Remember, stress may force a homebuyer to make rash decisions – something that a homebuyer probably wants to avoid at all costs. But if you're willing to take a deep breath and step back from the homebuying cycle at times, you can look at the big picture. And as a result, you can remain calm, cool and collected as you consider all of your homebuying options.
For those who are looking for extra help in their pursuit of the perfect home, it may be beneficial to hire a real estate agent too. This housing market professional can share details about a broad array of houses in cities and towns where you want to live. Plus, a real estate agent can keep you informed about new residences as they become available, help you submit offers on houses and much more.
Make your homeownership dream come true – take an open approach to the homebuying journey, and you may be able to accomplish your homebuying goal faster than ever before.