Blonde Girl Homebuyers

Saturday, August 27, 2016

5 Tips You Need To Know When Buying A House

Investments on any kind of an asset is always a great way to use your hard earned money to make you more money by buying assets.  When you decide to buy a house, there can be a lot of fear and uncertainty but also a lot of excitement.

It surely is a big step for you and your family, not only with the financial adjustments but also with making the change to a new neighborhood or city. But the feeling of owning a house and being able to call it your own is amazing.

Prior to purchasing your new house, there is surely lot to do from your end, apart from only investing your money. You would certainly like the best, both with your investment and for your family.

Keep these 5 tips in mind when planning to purchase your new house.


Market: It is very important to keep an eye on the market, at least 6 months prior to buying a house. As it is known, the market rate does fluctuate and when it is at the lowest, bid on the property you have been had your eye on. If you feel the market has not quite reached a low point you can wait for a little longer. Keep an eye on the market indicators such as building permits, existing home sales and foreclosures. These economic indicators can give you a good idea in which direction the market is heading. Be careful not to over analyze just the data you have to consider other factors such as mortgage rates and of course your families happiness.

Smart Bid:  Be very careful when making offers on houses you are interested in.  Some houses do not have much room for bargaining but you can still get some great extras that really add up. Ask questions like will the seller pay the closing costs?
Does this home come with a home warranty or Does the furniture stay? These are all great bargaining points that will get you a better deal even though it may not be a reduced price.
You will never know how much play the seller has in their asking price until you make a few offers. Don't always assume that "They'll never take that amount". You would be surprised sometimes. Make sure that you hire a good agent that is skilled in the art of negotiation as they will be submitting your offers and doing the negotiating.

Mortgage Rates and Terms : Get in touch with your bank or a mortgage broker to understand how much of a  loan you qualify for and what interest rate and terms you can get. This can greatly affect the amount of the house and the price range you can look in when buying a new house. Make sure to get pre qualified before you start your search, otherwise you may be wasting everyone's time looking at houses you are not qualified to buy.

Don't forget to include all of the other expenses you will incur when buying a house such as transfer taxes, title insurance, commissions etc. You may be able to roll all of these back into your mortgage in some cases.You also must consider all of the benefits you get from investing in real estate such as the write off on the interest expense of the mortgage. 

Keep A Reign On Your Expenses: When you decide to buy a house  you must start planning and saving well in advance. It usually can take several months to save the money needed. Once you decide on of the best ways to save the money quickly is to cut your expenses. Cut out all unnecessary spending and out that money in a separate a account for your house buying fund. Before you know it you'll have saved enough to get your dream home. It all starts with planning and saving.

Research The Neighborhoods:  When you have narrowed down where you want to buy your new home make sure to research the area thoroughly. One of the best ways to do this is to just talk to the neighbors in the areas and ask them what they like and don't like about the area. They usually will not hold back and let you know the good and bad. Another great way to learn about the neighborhoods is to call a local house buying company. These companies make a living out of buying, selling and renting properties. they usually can give you great insights into the area. Take this information and decide what is best for you and your family.
Visit the area at different times of the day, so you get the feel for what's going on. Keep in mind the area you choose and how convenient it is for shopping and schools. you may want a secluded place away from everyone but when to comes time to go shopping it will be an arduous task that you might end up regretting the choice. Look for balance between how you want your lifestyle in the future.


Keep these few points in mind when deciding on buying your next house. It is a huge investment of time and money so make sure that you will be happy with your choice in the years to come.












Thursday, August 18, 2016

Step By Step Real Estate Investing

What Constitutes A Real Estate Property? 


According to oxford dictionary it is a property consisting of land or buildings.Investing in real estate means purchase, ownership, ownership, management, rent or sale of real estate for profit. Real estate development entails improving a real estate property to make it a more profitable investment.

Real estate investments and tips that can save you money because they can be capital intensive, which means they require large sums of money. The value of a purchased property depends on various factors like location, market scenario and others. 

  Like many other capital intensive investments, if these factors are not understood or managed properly, real estate becomes a risky investment. Real estate investment is also highly cash flow dependent. Also, compared to other investments, real estate has limited liquidity, i.e. relative difficulty in converting asset into cash and vice versa.

Despite all this, real estate investment has become immensely popular over the last fifty years. What makes it popular?Real estate is one of the few investments where using bank’s money is easier. It also provides attractive and stable income return in the form of rental income.

Real estate investments are more complicated than stocks. Real estate markets in most countries are not very organized. Hence the factors effecting volatility differs from nation to nation. Real estate investments are also very expensive when compared to stocks or bonds. Hence the investor has to be very careful while purchasing any kind of real estate property.  

Individual properties are unique from each other, hence present challenge to an investor in evaluating value of the property. This makes locating properties a tricky work and also increases competition among investors. But it also makes way for opportunities to obtain properties at bargain properties. Some sources to properties include:

·        Market listings
·        Real estate agents or real estate brokers
·        Banks
·        Public auction
·        Private sales
·        Government entities


Though markets vary from country to country, the basic process of how one goes on about purchasing a property is almost same everywhere. Once a property is located, it is necessary to verify and investigate condition and status of the property. The acquisition process can be complex and must be executed properly since improperly executed transactions can be costly mistakes.


During this process, an investor typically makes a formal offer along with a payment of “earnest money” at the start, to reserve the investor’s rights to finish the transaction. This payment may or may not be refundable. The terms of the offer can also typically include contingency period which will allow the investor to verify the condition of the property, obtain the capital required. Within this period, the investor can cancel the offer if he discovers one of the five hidden costs when selling your property  without any penalty. Very rarely, investors pay entire amount of purchase price in cash. 

Usually, a large part of price is financed by a mortgage loan, which uses the property itself as collateral. While looking for an ideal property, location matters, and understanding tax benefits will definitely help. Real estate investing offers great benefits. But understanding the risk factors and managing them helps mitigate them.