Buying Real Estate can be your dream come true or your biggest nightmare. I have compiled a top ten list of the most important considerations when it’s time to buy. Buying Dallas Real Estate Tip #10: Big Purchases should not even be considered Huge purchases and moving money from account to account will send up red flags in every underwriters mind. The golden rule is to budget for no large purchases for the first three to six months before buying any real estate, period. This will help scrutinizing of your credit profile. Lenders need to see that you’re consistent and capable of making payments to get the lowest possible rate. It will be close to impossible for underwriters to give you a loan if you open a credit card with high limits or accumulate debt in another way. My advice . . . if you want a house or condo, make sure your credit is where it needs to be to ACQUIRE your new house or condo!
Buying Dallas Real Estate Tip #9: Before you look at one property, get pre-approvedThere’s a big difference between a buyer being pre-qualified and a buyer who has a pre-approved mortgage. Anybody can get pre-qualified for a loan. Getting pre-approved means a lender has looked at all of your financial information (i.e. pay stubs, credit report, and bank statements) and they’ve let you know how much you can afford per month and how much they will lend you according to your down payment. Being pre-approved will save you a lot of time and energy so you are not blindly looking around looking at houses you can't afford. It also gives you the opportunity to shop around for the best deal and the best interest rates. Many times you can find a lower rate and the company you are already pre-approved with will match it. Make sure there are no hidden fees or additional points that the lender charges you for that low rate.
Buying Dallas Real Estate Tip #8: Be border controlBuying a house or condo will take a lot of brain power. There are just some things you would never think of. It’s absolutely essential to get a survey done on your property so you know exactly what you’re buying. This is because knowing precisely where your property lines are may save you from a potential dispute with your not-so-friendly neighbors in a couple months. Also, your property tax is likely based on how much property you own, so it is best to have an accurate map drawn up if not provided with one.
Buying Dallas Real Estate Tip # 7: The Housing Market has a mind of its ownTrying to time the market and figure out when is the best time to buy is a bad mistake for 85% of buyers. Buying at the right time in the housing market is practically impossible. The greatest time to buy is when you find your perfect residence and you can have the funds for it. Real estate is recurring, it goes up and it goes down and it goes back up again and you have guessed it . . down. So when you can’t sleep the night you view a home, call them in the morning!
Buying Dallas Real Estate Tip # 6: Bigger isn’t always betterWho doesn’t love the biggest, most beautiful house on the block? Me, even though I, myself, got sucked into a floor plan that is the largest in the community. Larger is usually not better when it comes to homes and Condos. There’s an old motto in real estate that says don’t buy the biggest, most stunning house on the block. The largest house only appeals to a very minute audience and you never want to limit prospective buyers when you go to sell in the future. Your home is only going to go up in value as much as the other houses around you. At times it is best to buy the worst house on the block, because the worst house per square foot always trades for more than the biggest house.
Buying Dallas Real Estate Tip #5: Heads up on costs associated with a home or condoNearly all people just focus on their mortgage expense, but they also need to be aware of the other costs such as property taxes, utilities and homeowner-association dues. New homeowners and condo owners also need to be ready to pay for repairs, maintenance and potential property-tax increases. Make sure you budget for costs so you’ll be covered and won’t risk losing your residence.
Buying Dallas Real Estate Tip #4: Remember that you are buying real estate, not marrying itIf there is one thing I have learned in my Real Estate career it is this. Buying a property based on emotions is just going to break your heart somehow, someway. If you fall in love with something, you might end up making some pretty terrible financial decisions for yourself. There’s a big difference between your emotions and your intuition. Going with your intuition means that you recognize that you’re getting a great house for a good value. Going with your emotions is being obsessed with the paint color or the location. It’s an investment, so stay calm and be wise when signing that contract.
Buying Dallas Real Estate Tip #3: Do some homework on the pastWould you buy a car without checking under the hood? I sure hope not. Call an inspector. It’ll cost about $175, depending on location in the country, but could end up saving you a large headache. A home inspector’s sole responsibility is to present you with information so that you can make a decision as to whether or not to buy. It’s really the only way to get an unbiased third-party opinion. It’s better to spend the cash up front on an inspector than to find out later you have to spend a fortune.
Buying Dallas Real Estate Tip #2: The details in your offer Sellers respect an offer that is an oddball number and are more likely to take it more seriously. A nice round number sounds like every other bid out there. When you get more specific the sellers will think you’ve given the offer careful thought.
Buying Dallas Real Estate Tip #1: Use a Real Estate Broker that is a New Home or Condo Specialist Before you buy new, do your research on which 3rd party broker or agent has experience with the builder, developer and the community or building. Many buyers have come to the conclusion that if they use a realtor that they will not get as good of a deal than dealing direct with a builder or developer. Is this thought correct . . . absolutely! Builders have margins and the real estate commission is included in those margins. Now you are probably asking,
“Well Brad, that makes no sense to use a realtor if that is the case?” The answer is if you do not use a realtor, you might cut the costs by commissions, but you will most likely lose out on upgrades, buy-downs and other incentives that only a realtor would know because of their relationship and dealings in the past. This in my mind is where the builder takes advantage of the buyers uneducated thought process when dealing with the builder or developer. It is up to you though. I would rather let the pro do the work rather than worry about if you left anything on the table.
Good Luck in the Future.
Brad Holden is broker of
Holden New Homes specializing in residential real estate in Dallas, Texas. Contact him directly at (469) 733-2723 if you have any questions about Dallas Real Estate.
