So, you have decided to take the plunge into the real estate world, but aren’t exactly sure where to start. Anyone who has ever been at this point knows that this can be a very overwhelming stage. You may be getting pulled in ten different directions. In your excitement to get a property under your belt, every home looks like a winner. As you will find out, not every property looks as good as it appears online or even in your initial view. If you are just starting out or looking for a fresh take on buying, start with a specific price range and area and go from there. Everyone needs to focus on a starting point when buying a home.
Once you have a desired price range, it will dictate what neighborhoods you are approved for or comfortable with. Like anything else you are buying, the price will have the greatest impact on your purchasing decision. Look at what is on the market in your area and see what you can get for what price. The mistake that most new buyers make is thinking that the cheapest property will net them the biggest return. Of course you want to get the property for the least amount possible, but some of the cheapest houses can be the biggest headaches and will end up costing you more in the long turn. Look for quality properties with the biggest upside given the price range you are looking at.
There is a common misconception from people outside of the business that you look at a few properties, make some offers and wait for them to get accepted. The reality is that you will most likely have to look at dozens of properties before you even find a property that fits your offer criteria. You need to be self motivated to push on and find the deals that fit you. From there, you may get one seller to make a counteroffer. This isn’t a terrible thing, in fact, this is how you learn the business and get a feel of the neighborhood. The more houses you look at, the more you will see what is on the market and all of the different styles and layouts available. The more properties you see, the more you will know what you like and don’t like and what works and what doesn’t.
The final piece of the puzzle is to make an offer on the property. Again, the misconception is that you make an offer and just wait for it to get accepted. Inside of every offer is a contract specific to the property you are buying. Some properties and sellers may require a quicker closing, some may want an earnest money deposit and some look for decreased contingencies. Your realtor can walk you through the process, but with each offer you will get more comfortable with the contract itself and the process. The better you can feel the seller out and figure out what they want, the more successful you will be at getting your offers accepted. Doing the work in finding properties won’t do you any good unless you can push the ball over the goal line and actually close the deal.
There is a lot happening when you look at real estate. If you keep your focus narrow and stick to the three main areas, you will be much more successful and close many more deals.