Tuesday 27 August 2013

Short Form Valuation – The Savvy Homebuyer’s Valuable Tool

Buying a house can be a tricky endeavour, even if you have had prior experience. For some people, getting the service of an experienced and trusted real estate agent is an integral part of the whole process, making it easier with fewer hassles on their part.

However, the services of a real estate agent can make a significant dent on one's budget. Opting to forgo the services of an agent results in savings which can then be channelled towards further repairs of the property bought or other important expenses. That is why some people have chosen to purchase a property directly from homeowners, eliminating the middleman.

While engaging in the home buying process entails lots of time and effort on the part of the buyer, it is certainly doable and rewarding, if done right. Here are a few important tips to consider.

The first things you should do prior to looking for prospective houses to look at is to determine both the area which you want to live in as well as how much can you afford. These two are the primary factors that allow you to make a realistic shortlist of houses to look at. Don't forget to factor in other costs like association dues and commuting costs.

Getting pre-approved for a loan prior to entering into negotiations with a home seller can benefit you in two ways. First, you'll know exactly how much you can afford. Second, when you enter into a negotiation with a buyer, he will perceive that you are acting in good faith. Prior to searching for a home, prepare pertinent documents and talk to a lending institution.

Once you have found a suitable property that matches your budget and preferences, contact the owner. As the homeowner shows you the property, ask as many questions as you need. At this point, a short form valuation can be a valuable tool. This brief report contains both an internal and external inspection of a house along with reviews of the sale of comparable properties as well as prevailing market conditions. This gives you a third party perspective of the house's condition as well as a good gauge of how closely the owner has priced his property to fair market value.

Before making an offer, it is a good idea to enlist the aid of a local lawyer with experience in real estate to aid you in the buying process. When making an offer, base it on the prices of similar properties recently sold in the area. Remember to take an objective approach; deduct a few dollars from your offer from parts or add-ons to the house which you think do not add value to the property.

Once you have reached an agreement with the owner, it is now time to finalise your loan and seal the deal.

Do you have have any questions or suggestions? Fill free to write in comment section.

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