Home ownership is better than renting. By owning a home one
invests into the property, so the money that you would normally use towards
rent now goes into ownership. Once you know which home you want to buy, you
should make an offer. Your real estate agent can assist you with the offer.
Factors to consider are: The price should be in line with prices of similar
homes in the area; the condition of the home (will it cost you a substantial
amount of money to refurbish); has the home been on the market for some time
now (the seller may be eager to accept a lower offer); make sure you can afford
the offer. The closer your offer is to the asking price, the more likely your offer
will be accepted. Offers often get rejected. The real estate agent will
negotiate on your behalf.
When families enter into a contract to
buy or sell a house, two things are true:
-
The buyer wants to
own the home.
-
The seller wants
to sell the home.
In order for both these things to take
place, the transaction must be completed. That is not an easy task in the
current market. The National Association
of Realtors (NAR) released their Existing Homes Sales Report yesterday. In the
report, NAR announced that one out of every three contracts to purchase a home
in October never made it to a closing table.
How does that ratio stack up against previous numbers? Cancellations
have more than quadrupled in the last 14 months! According to NAR, cancellations are caused
by: "declined mortgage applications, failures in loan underwriting from
appraised values coming in below the negotiated price, or other problems
including home inspections and employment losses."
Having someone who truly knows the
market is crucial if you are planning to buy or sell a home. This expert should
know what is happening in real estate, understand why it is happening and be
able to simply and effectively explain each point to you and your family. There can be consequences if you don't have a
true industry professional on your side.
No one can guarantee you won't face
challenges. However, the best agents and mortgage professionals know how to
manage the expectations of all the parties involved thus dramatically
increasing the chances your deal will close and you and your family will be
able to move on with your lives.