If you want to delve into the world of real estate and make a business out of flipping houses, be prepared to learn the basics to become successful. It’s not just about trolling listings to see which houses are under the radar for foreclosure or jumping at the first house that has a for sale sign on the front lawn.
You should have a keen eye for detail in weeding out the best properties for you; you should also have great negotiating skills and the energy to seek out these homes that are within your budget. There are additional skills that you will need that can assist you in becoming a skilled modern homebuyer.
The first skill that you need to have is negotiating skills. Even if you need to seek out help or advice from an agent, it’s something you should have under your belt. Before negotiating, put your game face on, remain calm, and try not to divulge any information up front, such as your personal spending limit or even how much you like the property.
This is where self control and discipline come into play. You must be the only one who is in complete control of what you can afford to spend on a home, to avoid overspending. Even under the advice of a real estate agent who may tell you to get a home that is higher than what your budget allows, you shouldn’t. In this case, you should definitely reconsider looking at houses in a lower price range. If you’re looking for a four bedroom, consider a three bedroom.
Strategize to get the most out of the market and your budget. It’s important for you to do your math. You need to have an understanding of what you can and cannot afford. Sit down with your spouse or partner and discuss bills, investments and bank accounts to know how much money comes in and out on a monthly basis. Get an idea of how much you can collectively afford to put down on the home and how much you can afford to spend on the mortgage and maintenance each month.
With this information you can talk to your agent and work with them to set a price range when searching for a house that you’re interested in.
Listening is an important skill to have when buying a home. If you’re a smart house hunter, you will listen to the numbers, market data and trends, feedback from agents in reference to successful and unsuccessful offers. Also, listen to what the seller of the property wants and needs. Take all of these into consideration during the process.
Another factor to take into consideration is to find out why the property is being put up for sale and gather as much information about the vendor as possible.
Discovering certain facts will make you more knowledgeable about the property, which may provide an opportunity to negotiate a lower price.
Ask the following questions:
- How long has the property been on sale?
- Why are the owners selling?
- What price are they looking for?
- Is the price negotiable?
Getting answers to these pertinent questions can aid you in the process of buying your first home. Even if you have several properties under your belt these skills are essential to becoming a skilled home buyer.
Kaia is a freelance writer for MyBankTracker who specializes in real estate, saving and banking.