Buying or selling a house is one of the most significant financial moves you’ll ever make. It’s an investment of money and a major commitment of your time and energy, so you need to be prepared before wading into the real estate market. There’s plenty you can do before hiring a real estate agent.
If you’re a seller, do your legwork before settling on an asking price. If buying, you need to research the market before deciding what you want and where you want to live. These are preparatory tasks that will help your realtor do the best possible job on your behalf. Reverse Mortgage Loan Advisors shows you how to check them off your to-do list before engaging an agent.
If you’re in buying mode, being prepared means getting your finances in order and being familiar with your credit report. It’s important to have a clear idea of what you can afford and, as the Home Buying Institute adds, if there are any complications with your credit report that could cause problems when you apply for a mortgage loan. Knowing exactly what you’re facing will make it that much easier to get your affairs in order before a realtor starts lining up homes to view and bid on.
What can you afford?
It’s always a good idea to know what you can afford before beginning to search in earnest. This is where an expert from Reverse Mortgage Loan Advisors can help get you targeted. As you work through your options, bear in mind that with an FHA loan, your monthly mortgage payment can’t exceed 31 percent of your gross monthly income; 28 percent if it’s a conventional loan. If you need a ballpark estimate of what you can afford, there are online tools that can give you estimates based on information such as monthly income and monthly household debts.
Know the Market
HGTV notes that sellers need to have a good understanding of the real estate market in their area, especially what comparable houses are selling for, as well as home values. Check out the listings online and take a look around the neighborhood to see how active the market is in your area. Once you’ve got a good idea of what your home is worth, think about an asking price. It’s important to price a house to sell, but you also need to earn enough profit to recover the money you’ve invested in your home.
Check with an Agent
The next step is to get your house physically ready to show potential buyers. That means cleaning and decluttering, but it can also mean making renovations. Before diving into a major upgrade, touch base with an agent to see if it makes sense for your situation. Since you want your property to look its absolute best when it’s on the market, having the advice of an experienced agent is of the utmost importance. Instead of diving into projects that could negatively impact your home’s value, an agent can tell you what buyers are looking for in the area and guide your projects accordingly.
A Working Partnership
Remember that you and your realtor are involved in a working partnership, which requires trust and cooperation. Buyers and sellers can make an agent’s job easier by being direct with them from the jump. By working together, you can ensure that you’re both working toward the same end goal.
Remember, the work you do before hiring a realtor will not only benefit your agent, it’ll also help you in the long run. Your real estate adviser is there to help get you the best deal possible. Be sure to arm them with the best, most complete information you can right out of the gate.
Author – Chelsea Lamb
Chelsea Lamb has spent the last eight years honing her tech skills and is the resident tech specialist at Business Pop. Her goal is to demystify some of the technical aspects of business ownership.
Reverse Mortgage Loan Advisors educates the public about the FHA-insured Home Equity Conversion Mortgage, a.k.a. a reverse mortgage in layman’s terms. The intent is to provide unbiased reverse mortgage info on the subject — the great, the good, the bad, and the ugly. Reach out to us today! (714) 271-8524