5 Tips for Buying a Property
Looking to buy a property? Here are five essential tips for making the process as smooth as possible.
Get your finances in order.
Start by getting a full picture of your credit. Obtain copies of your credit report. Make sure the facts are correct, and fix any problems you find. Next, find a suitable lender and get pre-approved for a loan. This will put you in a better position to make a serious offer when you do find the right house. A Pre-Qualification Letter is a minimum requirement for putting in any offer. We can provide names of local lenders.
Find a home or investment property you can afford
When buying a primary residence, there’s a general rule of thumb: two-and-a-half times your annual salary. There are also a number of tools and calculators online that can help you understand how your income, debt, and expenses affect what you can afford. If you are a business owner or consultant rather that an employee for someone else, only a good lender can help you understand what price meets your income. Don’t forget, too, that there are lots of considerations beyond the sticker price, including property taxes, energy costs, etc.
When buying an investment property, you have to factor in potential income to off-set the expenses and talk to your tax accountant about the other benefits of owning investment property.
Hire a professional.
While the Internet gives buyers unprecedented access to home listings and resources, many aspects of the buying process require a level of expertise you can’t pick up from surfing the web. That’s why you’re better off using a professional agent than going it alone. We recommend using a Buyers’ Agent — one call to see anything you want to see instead of calling individual listing agents. A Buyers’ Agent will help from start to finish and have your interests at heart.
Do your homework.
Before making an offer, do some research to determine the state of the market at large. Is it more favorable for sellers or buyers? Next, look at sales trends of similar homes in the area or neighborhood. Your agent will get that for you. Look at prices for the last 6 – 8 months. Come up with an asking price that’s competitive, but also realistic. Otherwise, you may end up insulting the seller. Your Buyers’ Agent is a great help with all of this!
Think long term.
Buy with your future in mind. Are you looking for something to rent now and move into later? For Kauai, vacation rent or long term rent? That makes a difference on Kauai and can be a different kind of property. Buying to move right away? Buying as an investment? These are things to explore with your Buyers’ Agent. Kauai is unique so when you buy your Piece of Paradise, ensure that it is right for you. In Maryland, location and taxes may have an impact on your purchase. Your Agent is your Partner!