Home Buying Negotiating Tips
When it comes to buying a home, the ability and willingness to negotiate is a must for both the buyer and seller. In general, sellers ask for more than they are actually willing to accept and buyers offer less than they are willing to pay. The trick is to find the perfect balance so that you, as a buyer, feel good about the purchase price without leaving the seller feeling insulted.
Know Your Market
Real estate is a business that either favors the buyer or seller, hence the terms buyer's market and seller's market. When negotiating a purchase price, it's important to know which of the two you are in. As the buyer, you will have the best chance at a successful negotiation if you research the price of other comparable homes in the area before making an offer.
Make It Personal
When you make an offer, the seller will see nothing more than a piece of paper with some numbers on it that represent the price you are willing to pay. If you really want the seller to take your offer to heart, let them know why you want to buy the home. You can do this by preparing a handwritten letter expressing your interest and the reasons you fell in love with their house. If you have a family, tell them about everyone who will be living in the home. Let them get to know you and allow them to picture the happiness that you can bring to their house. Believe it or not, some sellers actually look at the process like finding a good home for a lost puppy. They want quality people to buy their home, so do your best to show them that you are sincere.
Nobody Likes Rejection
Not every offer is accepted, so don't be disheartened if your first offer isn't a winner. In some cases, the seller will make a counteroffer for your consideration. Have you ever heard the old saying, “never take the first offer?” The same is true in real estate, and almost every seller knows it. Your first offer is likely to be less than you are actually willing to pay, which leaves you some bargaining room.
Why Your Offer May Not Be Accepted
There are a number of reasons why a seller may choose to reject an offer, including a feeling that the offer was just too low, the house is newly listed on the market or another offer may be higher than the one you created. In some cases, sellers may also reject an offer that includes owner financing or other requests that are impossible to meet. One example may be an offer that requires the house be available within a certain amount of time. Most contracts require that the seller move out within 30 days, but anything less would require negotiation.
Read The Fine Print
Before you sign anything relating to a real estate transaction, make sure that you read over every detail of the agreement. If you have any questions, ask your REALTOR®. After all, real estate is their business and they are there to help you through every step.
Tuesday, March 20, 2012
Wednesday, March 7, 2012
Recognizing Predatory Mortage Lenders
Recognizing Predatory Mortgage Lenders
A predator is defined as one that preys on others, which is why some lenders have fittingly earned the title as predatory mortgage lenders. Excessively high interest rates, questionable and/or hidden fees and high pressure tactics used to direct borrowers to a larger loan than they may be able to afford are trademark characteristics of a predatory mortgage lender.
Prey Verses Predator
When it comes to obtaining a mortgage, the rules of the jungle often apply. If you aren't careful, you may find yourself in the grasp of a questionable foe. If you are someone who has had past credit problems or simply find yourself struggling to obtain a mortgage, it may seem like a good idea to sign on with any lender who can close the deal.
But wait, jungle etiquette suggests that you should be knowledgeable of your surroundings and always look before you leap. Before making a quick decision on a loan that nobody else would approve, ask yourself whether or not the deal is a good one for you.
Measuring Up
If you suspect that you have been subjected to a predatory mortgage lender, look at how they measure up to other lenders. Were you charged fees up front and, if so, how much were they and what were they for? Do the lender's interest rates compare to current market rates or do they exceed them? When reading the fine print, do you notice fees that were never mentioned before but have now suddenly appeared in the paperwork? An honest lender has nothing to hide and will not surprise you with unexpected costs.
Who's At Risk
To put it simply, anyone is at risk for dealing with a predatory mortgage lender. This likelihood increases, however, if the homebuyer lacks the proper knowledge in how to identify an unscrupulous lender who preys on the misfortune of others.
Individuals who are especially vulnerable include those that have been turned down by other lenders and have little or no hope of obtaining a conventional loan. This may include individuals with severe past credit problems, accounts in collections, first-time homebuyers with little or no credit history and the elderly who have difficulty understanding the loan process or reading the fine print.
When it comes to obtaining a home loan, the process can be both exciting and confusing. There is a lot of paperwork to be signed, details to be worked out and numbers to be crunched. Your REALTOR® can help to steer you toward a lender that will help you to get the best value for your dollar.
A predator is defined as one that preys on others, which is why some lenders have fittingly earned the title as predatory mortgage lenders. Excessively high interest rates, questionable and/or hidden fees and high pressure tactics used to direct borrowers to a larger loan than they may be able to afford are trademark characteristics of a predatory mortgage lender.
Prey Verses Predator
When it comes to obtaining a mortgage, the rules of the jungle often apply. If you aren't careful, you may find yourself in the grasp of a questionable foe. If you are someone who has had past credit problems or simply find yourself struggling to obtain a mortgage, it may seem like a good idea to sign on with any lender who can close the deal.
But wait, jungle etiquette suggests that you should be knowledgeable of your surroundings and always look before you leap. Before making a quick decision on a loan that nobody else would approve, ask yourself whether or not the deal is a good one for you.
Measuring Up
If you suspect that you have been subjected to a predatory mortgage lender, look at how they measure up to other lenders. Were you charged fees up front and, if so, how much were they and what were they for? Do the lender's interest rates compare to current market rates or do they exceed them? When reading the fine print, do you notice fees that were never mentioned before but have now suddenly appeared in the paperwork? An honest lender has nothing to hide and will not surprise you with unexpected costs.
Who's At Risk
To put it simply, anyone is at risk for dealing with a predatory mortgage lender. This likelihood increases, however, if the homebuyer lacks the proper knowledge in how to identify an unscrupulous lender who preys on the misfortune of others.
Individuals who are especially vulnerable include those that have been turned down by other lenders and have little or no hope of obtaining a conventional loan. This may include individuals with severe past credit problems, accounts in collections, first-time homebuyers with little or no credit history and the elderly who have difficulty understanding the loan process or reading the fine print.
When it comes to obtaining a home loan, the process can be both exciting and confusing. There is a lot of paperwork to be signed, details to be worked out and numbers to be crunched. Your REALTOR® can help to steer you toward a lender that will help you to get the best value for your dollar.
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