If you're thinking about buying or selling your house, you want to know everything there is to know about real estate before making your final decision. Here are six tips from the experts on what to do, and not to do, when you're buying or selling your house.
1) Get a Real Estate Agent
When it comes to making one of the most important decisions of your life, it's not enough to just know what you want. You need someone who knows the market and can help you find the perfect home. A real estate agent can also help you find listings that are not publicly available and negotiate on your behalf.
2) Get a Mortgage Pre-Approval
The first step in buying a house is getting pre-approved. You want to do this before looking at homes, because it will tell you how much house you can afford. A mortgage pre-approval is the best way to get an idea of how much you can spend on a home. Plus, after you're pre-approved, the lender has more confidence that you'll be able to make payments on time, which gives them more incentive to work with your offer on any given house.
3) Know What You Can Afford
One of the most important things to know before buying is how much you can afford, this is not a car rental in Reykjavik, you are buying or selling one of the most important things you have ever owned. A good rule of thumb is to take your monthly gross income and divide it by 12 (the number of months in a year). This will give you an idea of what you can spend on payments each month, but don't forget that this doesn't include other costs such as taxes, maintenance, and closing costs. Once you have this budget in mind, start looking at homes within those parameters. Remember that your mortgage payment should not be more than 28% of your gross annual income.
4) Do Your Research
Learn as much as you can about the market, your price range, and the type of property that suits your needs. This information will be essential when it comes time to find your dream home. Don't forget to learn about mortgages too. You'll need to know what kind of loan you're eligible for and how much money you'll need saved up for a down payment before you start browsing online listings. The more research you do ahead of time, the smoother this whole process will go.
5) Be Ready to Compromise
Be ready to compromise. Look at what you need and what you want, as well as your budget and the market, then take time to think about what you can live with. Be honest with yourself and your realtor about any problems in the house before deciding whether to buy it or not. If you are selling a house, make sure it is clean and repaired before putting it on the market.
6) Have a Backup Plan
Whether you're looking to buy or sell, it's always important to have a backup plan. When buying, make sure your home is inspected before the closing date. It will help avoid unpleasant surprises and make the process more streamlined. Don't settle on one option too soon, especially if you're trying to buy. Research different areas and find out what's available in terms of price and features so you can weigh the pros and cons. You don't want to get stuck with something that doesn't meet your needs because of lack of research.
