How to Make Your First Real Estate Investment
So, it’s time to make your first real estate investment. Whether you are buying yourself an apartment or a house, or want to turn them over for profit, you are taking a big step. We asked the experts for advice.
Do not invest in real estate alone
You may be living alone, but you shouldn’t tackle this task alone. To do this, you need to have sharp people skills because you will be talking to realtors, homeowners, bankers and maybe even lawyers and contractors. Now is not the time to be shy, not least because you have to be bold and assertive when you make your proposals.
Choose an agent you like with experience in the area where you want to live. Ask them about their history and how many places they have visited in recent years. Be clear about what you need to have, whether it’s a garage or convenience store within walking distance, and what you could live without. Indicate which areas you are interested in, which you will not go to, and which you are ready to consider if there will be a suitable property. If the agent gives you feedback that you don’t like, or tries to moderate your expectations a little, don’t reject them entirely; it is a learning process and you have to listen to people who know what they are talking about.
“It is important that there is a strong team behind the buyer. They need to have a trusted buying agent to recommend, highlight any red flags, and advise on the correct bid price and pricing, ”said Jessica Levin, one of Douglas Elliman’s top agents, both in terms of transaction volume and gross fee and commission income since 2011. …
Build a trusting relationship with your agent, and if you promise them you won’t look back with any of their competitors, don’t look back with any of their competitors. Treat everyone involved with respect because every person you meet has some degree of power over whether or not you get a job.
“Don’t try to be smart or you will lose your home,” said Sean Elliot, managing director of Nest Seekers International. “Come on, step your best foot forward.”
Get ready to be disappointed
It happens all the time: a lot of people like the house. Several people make a home offer . Only one person can get a home. Everyone else will be disappointed.
“Bid wars are common in the current market, so strategy, approach and timing can be critical,” Levin said.
Elliot added: “This is the seller’s market. In the seller’s market, homes are usually sold either on demand or over-priced. In a seller’s market, when interest rates are at historic lows, you don’t go in and underestimate. If you come in, you have to come red-handed, because there are 10 more families behind you who want the same. All markets have it: New York, Hampton, South Florida. “
Don’t expect to get the first spot you bid for, but be glad if you do. Manage your expectations, give yourself time to find a place, and communicate with your agent every step of the way. Ask them questions – many questions. In the end, if you are qualified, you will get something, but this is usually not a one-time deal.
Improve your chances of buying the place you want
“If you know you have creditworthiness and you have money, then you have to give up mortgage contingencies as a cash buyer, which really means you look better because your conditions are better than people. with whom you compete, ”said Elliot. … “A prequalified letter from your bank will also help with the proposal, along with giving the seller a choice of the closing date.”
Levin noted: “A proposal that is ‘not dependent on funding’ is almost equivalent in strength to a proposal that is entirely about cash. The buyer must also make sure that he understands the mortgage he is entitled to and the various products and options on the market. This helps to stay within budget and allows the buyer to feel comfortable raising prices in the event of a bidding war. This can help the buyer gain a competitive advantage in today’s ruthless market. ”
If all of this didn’t make sense to you, take a step back. Run it as your agent. Check out the homebuyer’s glossary and forums for first-time homebuyers. The more information you read and ask questions, the better prepared you will be to propose your first home. Now go and schedule a few visits to promising properties.