Hilton Head Island Real Estate - Property List
Buyers Tips
Buying a home will probably rank as one of the biggest personal investments one
can make. Being organized and in control will contribute significantly to
getting the best home deal possible with the least amount of stress. It's
important to anticipate the steps required to successfully achieve your housing
goal and to build a plan of action that gets you there.
Before you can build a plan of action, take the time to lay the groundwork for
your decision-making process.
First, ask yourself how much can you afford to pay for a home. If you're not
sure on the price range, find a lender and get preapproved. Preapproval will
let you know how much you can afford so that you can look for homes in your
price range. Getting pre-approved helps you to alleviate some of the anxieties
that come with home buying. You know exactly what you qualify for and at what
rate, you know how large your monthly mortgage payments will be, and you know
how much you will have for a down payment. Once you are pre-approved, you avoid
the frustration of finding homes that you think are perfect, but are not in
your price range.
Second, ask yourself where you want to live and what is the best location for
you and/or your family. Things to consider:
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types of homes in neighborhood, for example condos, town homes, co-ops, newly
constructed homes
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convenience for all family members
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proximity to work, school
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private and public school quality
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shops, restaurants, leisure time activities, neighborhood
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crime rate of neighborhood
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local transportation
The best seller is one who is highly motivated. A highly motivated seller is
more likely to sell for less than his or her house is worth. And it matters
that you find out why; learning the reason why can help you get the price you
want and help the seller get what they want: a timely sale.
When given the opportunity to meet with sellers, ask them why they are selling.
The reasons could be anything from job change to a new location to financial
problems. If you can solve their problem, whether it is cash related or time
related, do so. For example, if the sellers are highly motivated because they
need to move quickly, give them a fast sale - and a lower price. If you can
make an offer, even a low one, that gives them cash in a short time, they are
more likely to accept.
There are also some sellers that you should avoid. Not every seller is as
genuinely motivated as they make themselves to be. Some possible hints:
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stall on having the home appraised or inspected
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unable to clear up liens against their property
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do not own 100% of their property
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do not have a replacement property or back up plan
It is impossible to find the perfect seller. But it is possible to find out
which sellers are legit, and which ones aren't.
Hot Market
This is an extremely competitive market, one that is advantageous to the
seller. Sometimes, homes will sell as soon as they are listed or even before
homes are listed. Typically, during a hot market, multiple offers will be made
on each home and more often than not, homes will sell for more than their
asking price. It is even more crucial to be prepared and to be ready as a buyer
when the market is hot. It can be easy to get caught up in the bid for a home,
but if you are prepared (pre-approved, solid in price range, realistic about
your needs), it is easier to remain focused on your housing needs and price
range.
Normal Market
In a normal market, there is fairly a large number of homes available and an
average number of buyers. This market does not necessarily favor the buyer or
the seller. A seller may not have as many offers on their home, but he or she
may not be desperate to sell either. Again, it is the buyer's responsibility to
be prepared. During a normal market, the chances to negotiate are higher than
in a hot market. As a buyer, you can expect to make offers at lower than the
asking price and negotiate a price at least somewhat less than what the sellers
are asking.
Cold Market
In a cold market, houses may be listed for more than a year and the prices of
houses listed may drop considerably. This market is advantageous to the buyer.
As a buyer, you have the time to make an offer that works to your best
interest. It is not uncommon to low-ball and to find that sellers are
accommodating to meet your needs. Keep in mind that even though this market is
a great time for buyers, you do not want to lose your dream home by being
unrealistic. Your goal is to get the your dream home at the best possible
price.
It's important that you choose an experienced agent who is there for you. Your
agent should be actively finding you potential homes, keeping you informed of
the entire process, negotiating furiously on your behalf, and answering all of
your questions with competence and speed.
First, find an agent who represents you and not the seller. This is beneficial
during the negotiation process. If you are working with a buyer's agent, he or
she is required not to tell the seller of your top choice. In addition, he or
she is also focused on getting you the lowest asking price.
Also, when you use a buyer's agent, you will see more properties. Not only are
they plugged into their Multiple Listing Service, but also they are actively
finding homes that are listed as FSBO, or homes that sellers are thinking about
listing
Don't go on a spending spree using credit if you are thinking about buying a
home, or in the process of buying a new home. Your mortgage pre-approval is
subject to a final evaluation of your financial situation.
Every $100 you pay per month on a credit payment could cost your about $10,000
in home eligibility. For example, a car payment of $300/month could mean that
you qualify for $30,000 less in a mortgage.
Even if you have accumulated enough savings, you should consider not making any
large purchases until after closing. The last thing you want is to know that
you could have purchased a new home had you curbed the urge to spend
It used to be that buyers could go house shopping and when they have found
their dream home, then they go to get pre-approved. However, in today's market,
that has proven to be one of the least effective methods in landing the dream
home.
Most lenders can pre-qualify you for a mortgage over the phone. Based on
general questions about your income, debt, assets, and credit history, lenders
can estimate how much mortgage you qualify for. However, being pre-qualified
and pre-approved are different things. Pre-approval means that you have applied
for a mortgage; you have filled out the mortgage application, received your
credit report, and verified your employment, assets, etc. When you are
pre-approved, you know exactly what the maximum loan amount will be.
A pre-qualified letter is not verified and in essence, does not count for much
if you are competing with other buyers who are pre-approved. When you are
pre-approved, you and the seller know exactly how much house you can afford. It
gives you credibility as an interested buyer and lets the seller know
immediately that you will qualify for a loan to buy their property.
In addition to being pre-approved, it's important to be pre-approved with a
legitimate lender. Legitimate lenders include: banks, mortgage bankers, credit
unions, savings and loan associations, mortgage brokers, and online lenders.
Some lenders to avoid: those who lose a form or misplace a file, those who
gather information from you in an unorganized manner, those who are not
informed about interest rates, points or costs, and those who cannot provide
you with the right information.
As a buyer, you are entitled to know exactly what you are getting. Don't take
for granted what you see and what the seller or the listing agent tells you. A
professional home inspection is something you MUST do, whether you are buying
an existing home or a new one. An inspection is an opportunity to have an
expert look closely at the property you are considering purchasing and getting
both an oral and written opinion as to its condition.
Beforehand, make sure the report will be done by a professional organization,
such as a local trade organization or a national trade organization such as
ASHI (American Society of Home Inspection). Not only should you never skip an
inspection, but also you should go along with the inspector during inspection.
This gives you a chance to ask questions about the property and get answers
that are not biased. In addition, the oral comments are typically more
revealing and detailed than what you will find on the written report. Once the
inspection is complete, review the inspection report carefully.
You have to demand an inspection when you present your offer. It must be
written in as a contingency; if you do not approve the inspection report, then
you don't buy. Most real estate contracts automatically provide an inspection
contingency.
By asking the right questions, and knowing exactly what your needs are, you can
find the right loan for you. There are certain approaches that you can take
while mortgage shopping that can cost or save you money.
It is still true that the better qualifications you have, the lower your
interest rate will be. However, there are mortgages available for almost
everyone; it's the interest rates or the down payments that vary.
Before speaking with a lender, know what monthly dollar amount you feel
comfortable committing to. Then when you discuss mortgage pre-approval with
your lender, it is easier for you to determine the monthly amount and what
value of home the monthly amount translates into. Do not put yourself in the
position where you will be paying more each month than you intended simply
because the "dream" house requires it.
Do your research on the types of mortgages available to you and find the one
that best suits your needs. There are a number of considerations to be made in
terms of finding the best mortgage for each individual:
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What type of market are you in? Are the interest rates falling or rising?
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Do you want a fixed mortgage rate, where you will always know what your payment
is going to be?
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What are your long-term goals? Do you intend to resell the property? Do you
only need the mortgage for a short time?