SELLING YOUR HOUSE?
Pre-Qualification: Meet with a mortgage broker and find out how much you can afford to pay for a home
» Pre-Approval: While knowing how much you can afford is the first step, sellers will be much more receptive to potential buyers who have been pre-approved. You’ll also avoid being disappointed when going after homes that are out of your price range. With Pre-Approval, the buyer actually applies for a mortgage and receives a commitment in writing from a lender. This way, assuming the home you’re interested in is at or under the amount you are pre-qualified for, the seller knows immediately that you are a serious buyer for that property. Costs for pre-approval are generally nominal and lenders will usually permit you to pay them when you close your loan.
» List of Needs & Wants: Make 2 lists. The first should include items you must have (i.e., the number of bedrooms you need for the size of your family, a one-story house if accessibility is a factor, etc.). The second list is your wishes, things you would like to have (pool, den, etc.) but that are not absolutely necessary. Realistically for first-time buyers, you probably will not get everything on your wish list, but it will keep you on track for what you are looking for.
» Representation by a Professional: Consider hiring your own real estate agent, one who is working for you, the buyer, not the seller.
» Focus & Organization: In a convenient location, keep handy the items that will assist you in maximizing your home search efforts. Such items may include:
- One or more detailed maps with your areas of interest highlighted.
- A file of the properties that your agent has shown to you, along with ads you have cut out from the newspaper.
- Paper and pen, for taking notes as you search.
- Instant or video camera to help refresh your memory on individual properties, especially if you are attending a series of showings.
- Location: Look at a potential property as if you are the seller. Would a prospective buyer find it attractive based on school district, crime rate, proximity to positive (shopping, parks, freeway access) and negative (abandoned properties, garbage dump, source of noise) features of the area?
» Visualize the house empty & with your decor: Are the rooms laid out to fit your needs? Is there enough light?
» Be Objective: Instead of thinking with your heart when you find a home, think with your head. Does this home really meet your needs? There are many houses on the market, so don’t make a hurried decision that you may regret later.
» Be Thorough: A few extra dollars well spent now may save you big expenses in the long run. Don’t forget such essentials as:
- Include inspection & mortgage contingencies in your written offer.
- Have the property inspected by a professional inspector.
- Request a second walk-through to take place within 24 hours of closing.
- You want to check to see that no changes have been made that were not agreed on (i.e., a nice chandelier that you assumed came with the sale having been replaced by a cheap ceiling light).
All the above may seem rather overwhelming. That is why having a professional represent you and keep track of all the details for you is highly recommended. Please email me or call me directly to discuss any of these matters in further detail.
- Pre-qualify with a lender – Being pre-qualified alleviates stress and allows you to be prepared to make an offer when you do find your dream home. It gives the seller assurance that you can afford the home and are a credible buyer
- Meet with Agent
- Determine time frame and price range on future home
- Discuss and decide on other home search criteria (schools, location, etc.)
- Set up tours
- Make offer
- Contract negotiations
- Offer Acceptance
- Mortgage Application
- Inspection Period
- Home Inspection
- Contingencies to be met
- Mortgage approval
- Closing attorney selected
- Pre-closing walk through date set
- Closing Date set
- Contact utilities/termite inspection
- Pre-closing walk through
- Move into your new home!
Purvis Realty Group also specializes in office, industrial, retail and land investment sales. Nathan, Susan and Mike have years of experience working with investors and will work closely with you to determine which property best suits your needs. As a first time investor:
- Understand the different property types and their cash flow as well as maintenance.
- Work with Agent to determine location and other property criteria. Location is critical. If the location of the property is not in demand, more than likely finding tenants or developers will be difficult and result in vacancies or undeveloped lots.
- Analyze comparables in the area, including researching future development. Otherwise known as “comps,” these assets refer to prices paid for recently sold properties and helps determine market value.
- Underwriting- Carefully analyzing all expenses, as well as calculating these formulas is essential to determining the return the property will produce:
- Net Operating Income: Revenue minus operating expenses
- Cap Rate: Ratio of net operating income to property asset value.
- Cash On Cash: Rate of return when relying on financing to purchase their property.
- Market Research – Is the market in this location moving toward growth or decline?