While some people go for the new home, most people buy an existing home. In this case, the home could be just one year old but it has had a previous owner. The thing to remember when buying an existing home is that depending on the age of the house, you could be faced with some challenges that might develop into costly repairs.
One of the things you want to remember from the beginning is that when working with a lender, especially if you become pre-qualified or pre-approved, just because you are told you can afford a $300,000 house does not mean that is what you should buy. Unfortunately, lenders put things on paper and then based on certain ratios, tell you what you can afford to buy. The problem is that they put y at the top of the range. Because of this, you might have to give up quite a bit to afford such a home. Therefore, after identifying the number from the lender, you need to determine the amount you can afford based not just on that number but also on debts and lifestyles.
Then, although the house will have a price tag, you need to take a little control in what it actually sells for. For instance, if someone has your dream home on the market for $200,000 but your budget is $175,000, offer your top dollar knowing that you may or may not get the house. If the seller is not interested in reducing the cost that much, you can walk away. At that point, the house will either sit or sell. If it sits, it is possible the seller’s agent will contact you to bargain. Depending on the seller’s situation, they may take your offer. For instance, if the buyer is motivated because of being transferred with a job, they do not want the house sitting very long. Because of this, they may realize your offer is not too bad.
Make sure you have your own real estate agent. The reason is that if you were to use a dual agent, someone that represents both seller and buyer, chances are because of the commission the agent would have the seller’s best interest at heart, not yours. Therefore, it would be worth your while to get an agent or buyer’s broker. That way, you would have some fees but nothing to do with the commission. The same is true in using the services of the seller’s agent. You see, by law, the seller’s agent has a fiduciary responsibility to that individual. This means the agent would disclose any information to the seller while doing everything to close the deal.