Buying Property--Overview And Tips
Author: Robert Davis

There are many reasons for buying property. You may be starting
a family or taking a new job. Your purchase could be an
investment, or simply to signify your independence. Whatever
the reason, buying property is one of the largest financial
commitments of your lifetime, so be sure to give your decision
time and careful consideration.

With multiple offers being extremely common and the number of
suitable homes on the market diminishing, you need to position
yourself to have the best chance of having your offer accepted.
A few basic steps will help to increase your chance of success:

Get pre-approved for your mortgage. Most lenders will review
your situation and set a mortgage amount before you make your
offer. You will know the price range in which you qualify, and
best suits your lifestyle. Mortgage pre-approval takes little
time and is of great value in your home purchase process.

Submit a strong and competitive offer. Don't lowball the seller
just for the sake of playing the real estate "game". Assume that
there will be multiple offers.

Make a substantial deposit. Acceptance of your offer may be
determined by the amount of your cash deposit. Larger sums can
signify a more serious commitment to the seller.

Go easy on the conditions and contingencies. Most sellers are
interested in a fast closing, and want to worry about as few
conditions as possible.  Don't worry about whether the blinds
are ceiling fans are included in the purchase price. Fewer
contingencies will make your offer appear much more attractive.


Create a buyer profile. Some sellers will be interested in
knowing a few things about you. Be prepared to share your
profile, with certain details like the amount of time you've
been employed at your current job, and the reason you're
purchasing the seller's property.

Be ready and waiting to preview new properties. In real estate,
time is gold. Be sure that you are always accessible and ready
to go when a new property becomes available. When the market is
hot, homes will sell very quickly, sometimes in hours, and
you've got to be ready. Be prepared to make decisions quickly,
and be accessible to changing terms instantly. Sellers will not
want to wait while you hedge over details.

Make yourself available at all times. It is essential that you
are accessible at all times during negotiations. Your agent
must be able to access you instantly through office phone,
email, voice mail, fax, pager or cellular phone.

Whether you are buying property for investment, or as your
personal residence, do what you can to make the experience as
stress free and low risk as possible. Here are some ways to be
aware of and avoid the pitfalls of buying real estate:

Don't let emotions push you into a making a rash decision.
Consider why you wish to purchase the property. If you intend
to live there, be sure that the home and neighborhood suit your
needs. If you have young children or elderly relatives living
with you, you might wish to avoid homes with multiple levels.
If you would you like to install a swimming pool in the future,
be sure that the property is big enough and zoning laws will
allow it. Is the garden too big, or too small? If your family
is growing, make sure there are enough bedrooms.

Do your homework. Before making a commitment to purchase the
property, be sure to review reports for building and pest
inspections. If the property has undergone recent renovations,
check with the local council to ensure planning or building
permits were approved and obtained by the contractor or seller.


Know your neighbors. If you are buying a villa, apartment,
condo or townhouse, you'll likely be sharing a common wall with
your neighbors. If possible, check noise levels before you
commit. Try to meet your new neighbors to see if they share
similar values and lifestyles.

Be informed. Research the overall real estate market in your
particular area of interest. You'll be better informed on
property values and neighborhood trends, and in a stronger
position to make a wise decision.

It can be difficult to determine how much to offer. You can
make your best offer up front, or start with a lower amount and
be prepared to negotiate up. However, other potential buyers who
make higher offers might secure the property without giving you
the opportunity to increase yours.

To avoid someone else purchasing the property you have decided
to buy, be prepared to exchange the contract with a cooling off
period.

The estate agents need to regard you as a serious applicant.
Show a willing attitude and be eager and available to view.
Call your agent regularly, and you'll be at the top of the list
when a new property comes on the market.

Gazumping is a term for outbidding rivals at the last minute.
This is a real estate horror that real estate agents are
powerless to stop, even if they wanted to. Unless you're lucky
enough to live in Scotland where there are laws to protect the
buyer, gazumping is a fact of life that you need to be prepared
to deal with. Under the Estate Agency Act, estate agents are
obligated to pass on all offers they receive, although a
determined buyer may well go straight to the vendor.

There is little that can be done to repel a determined bidder,
but there are ways to lessen the chance of it happening, or
reduce the impact if it does.

When making your offer, agree to the full asking price and
request the property be removed from the market. Have respect
for the seller, be flexible and don't quibble over minor
points. Make it clear that you are willing to complete the deal
on their calendar, not yours. If you've established some kind of
relationship with the seller, it may be harder for them to let
you down. But just to be safe, consider taking out insurance
even before you instruct your solicitor. This will ensure that
you're refunded the cost of various fees in the event that you
are gazumped.

The home of your dreams can soon be yours if you know the
rules, understand the legalities and work with an agent that
you trust.


About The Author: Robert Davis writes for several web sites,
especially http://rosuf.com and http://dicez.com