Tips

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Before you start looking for a home you should ask yourself a few  questions. Where do you want to live? Do you want to be close to  schools, shopping, or work? What kind of house would you like (need)?  Are you looking for a particular style? How many bedrooms and bathrooms  do you want? Do you want a yard? How much house can you afford? Have you  consulted a REALTOR or mortgage lender to determine the size of the  mortgage you would qualify for? Here are a few tips to help you get  organized: 

• Pull a credit report on yourself and make sure  the information is accurate. If you find any errors take steps to  correct them immediately.
• Browse through real estate  advertisements in the newspaper and Homes magazines. This will give you a  good feel for the types of homes that are on the market and what they  cost.
• In many communities, REALTORS may have television programs  or interactive phone systems which will allow you to find out  information.
• Visit open houses on the weekend. It doesn’t cost  anything to look, and looking at a few different homes might give you  some ideas for things you’d like in a house but haven’t considered.
• Start saving money – you’ll need to have cash on hand for a down payment and closing costs.
• Don’t incur any additional debt. Pay down your credit cards – and don’t  apply for any new ones. Don’t make any major purchases on credit – buy  the furniture or car later.
• Contact a REALTOR. Your REALTOR can  help you determine how much you can afford, and they can provide you  with information on homes that may interest you. The REALTOR will also  help you complete all of the necessary forms when it comes time to make  an offer.

Simply put,  you can afford a house that costs as much as the largest monthly  mortgage payment you qualify for. A quick way to estimate the size of  mortgage you qualify for is to take your gross monthly income (that’s  before taxes and other deductions) and multiply it by .28. This works  out to just over 1/4 of your gross income. Mortgage companies use  something called qualifying ratios to determine how much they’ll lend  you. Most mortgage companies use either a 28/36 ratio or a 25/33 ratio.  The first number in each pair is the percentage of your gross income  that the lender would consider acceptable as a monthly mortgage payment  (i.e. if you make $3,000 per month, 28% of that is $840 per month). The  second number in each pair is used when all debt payments are  considered, not just the mortgage. (i.e. if you make $3,000 per month,  but also have a $250 a month car payment, 36% of $3,000 is $1,080, minus  the $250 car payment equals $830). As you can see, in this example the  numbers work out to be almost the same. Obviously if you have more debt  you would qualify for less. 

Working with a professional REALTOR to buy your home is a good idea for several reasons:

• They’ll analyze your financial situation to help you determine how much you can afford
• They’re familiar with the process of buying a home and can explain things to you.
• They can easily access information on all properties listed for sale by REALTORS in your area.
• They can set up appointments for you to see homes that interest you.
• They’ll help you complete all the necessary paperwork when it comes time to make an offer.
• They’ll help you arrange financing.
• They’ll be there at closing to answer your questions and make sure everything runs smooth.

Searching  for your dream home can be a time consuming experience. Working with a  professional REALTOR will make the process much more efficient. Since  most people spend a fair amount of time with their REALTOR, it’s  important to choose a REALTOR you feel comfortable with, and one who is  responsive to your needs. The following questions will help you decide  if a particular REALTOR is right for you:

• Do they return your phone calls?
• Do they ask you questions to determine what you want/need in a house?
• Do they perform a financial analysis to help you determine how much you can afford?
• Do they explain things clearly?
• Do they suggest financing methods?
• Do they seem knowledgeable about the community?
• Do you feel comfortable spending time with them?

If  the answer to most of these questions is “Yes” – you’ve found yourself a  great REALTOR. If you find yourself answering “no” to many of these  questions, or to any individual questions that are important to you, you  should keep looking until you find a REALTOR you feel comfortable with..

If  you’re planning on selling a house, you’ll have to decide what price  you’re going to ask for the home. This is one of the most important and  difficult decisions you’ll have to make. Buyers select by comparison  shopping, so your home will have to have a fair market price in order  for it to sell. A real estate professional can help you determine the  market value of your home while still obtaining the top-dollar price for  your piece of property. Some of the things to consider when choosing  your home price are:

• What is the age & condition of your home?
• Does it need updating?
• What have similar homes in your area sold for?
• Have homes in your area been increasing or decreasing in value?
• Are there a lot of homes for sale in your area?

Remember,  your home is only worth what someone is willing to pay for it. By  working with a qualified real estate professional, you can ensure that  your property will receive the needed exposure to attract interested  parties who are willing to make an offer.

When  you’re selling your home you’ll want to put forth the very best  product. Buyers aren’t coming for just a quick look but for a careful  inspection. Keep the exterior neat by painting the trim, clipping the  hedges, mowing, edging, and weeding the lawn and you may even want to  plant a few flowers. Inside you’ll want to lighten up the darker  corners, perhaps add some fresh paint and put the clutter away to give  the rooms an open feeling. Make sure there are no “stale” odors in the  home. This can be especially important for remote areas such as a  basement or attic. On the day of your open house, you may want to  consider baking some cookies or bring in some fragrant fresh flowers.  This will add a cheery and pleasant scent to your home. These little  things just may help you sell your home a bit more quickly.