4 Ways to Make Home Buying Process Faster

a couple signing a contractIf you already have experience in the purchase of a residential property, you know how long and tough the entire process can be. The application and approval process with the bank or financial institution alone can take a month or so.

Fortunately, there are trusted and proven ways to assist those who do not have the patience to wait for months. These are four ways that will help you speed up the entire process so that it will be finished within a few weeks:

1. Borrow from a hard money lender.

Hard money lenders are among your best options if you are looking to speed up the process. These lenders usually have fewer requirements compared to banks and financial institutions.

Plus, they do not really have a minimum credit requirement that you have to adhere to. Search for residential hard money lenders in Florida so that the process of purchasing the house will be faster.

2. Hire a reliable broker.

Brokers have a lot of experience in the purchase of a house. This experience will be useful in avoiding errors in the process. If you want to speed up the process, the brokers are your friends as they will be able to steer you in a direction that will make things faster.

3. Prepare the paperwork in advance.

Getting the paperwork ready for the purchase of a house sounds easy. But you would be surprised how much of a struggle it can be. To make things simpler, make sure that you prepare them in advance.

4. Already have a house in mind.

Keep a list of must-haves and no-no’for the house that you will buy. This will make the process of narrowing down the houses you will consider more efficient.

The purchase of a house does not have to entail an absurdly long process. When there are strategies you can do to make the process faster, you should definitely consider doing them to save you some time.

3 Best Tips for Negotiating the Price of Your Dream Home

Handshake in foreground, house with lawn in backgroundSo you’ve crunched the numbers and established how much you can realistically pay on your desired house. Perhaps you’ve even visited homes for sale in Richland, WA, and have made up your mind on which one you want.
There’s just one problem though. The asking price of the house is slightly over what you had budgeted for. How do you get the seller to lower the price? 

Find a Competent Broker

A great broker has the skills and experience to negotiate on your behalf so that you get a reasonable price on your dream house. Ask around for reputable professionals, or head online and check out a few. Talk to two or three of them, and ask about their process, approach, methodology and tactics. Choose the one who demonstrates the ability to help you out.

Understand the Market

The market your dream house is located in determines how much negotiating room you have. If the home is in a competitive market, then negotiating may be a bit harder. Do a little research on the price of homes in the area to find out what figure you should offer to make the negotiation more effective. 

Study House Inspection Reports

Naturally, you’re going to have your home inspected before you purchase it. If the report reveals certain issues with the house and you feel you want to buy it, then use the report as your leverage. Most sellers will be willing to listen to your concerns and lower the price of the home.
You negotiate for most other things you want to buy, and there’s no reason not to do the same when buying a home. By applying a few smart strategies, you can get the seller to reduce the price to a level both of you are comfortable with.

How to Make the Most of a 1031 Property Exchange

people working at the officeSurprising as it might seem, the IRS can give you a leg up when playing the real estate market, explains an expert in 1031 exchange services here in Nevada. Under the section 1031 of the US tax code, you can hold on to the capital gains of a property you hold for productive use or investment.

Such properties include industrial warehouses, office complexes, apartment blocks, rental houses, and any property with an income. However, you need to play by a few rules to enjoy this support.

Designate the replacement property

Tax on capital gains can be anywhere from 15 to 30 percent of the profits you realize from a sale. Therefore, deferring the tax will amount to considerable savings. To realize these benefits, you need to identify the replacement property when making a sale.

Ideally, the property should be an equivalent value if not higher. The earlier you do, the better your chances of success as you have 45 days to identify the target property. Meanwhile, you need to appoint a qualified intermediary to handle the cash from the sale of your original property.

At no point during the exchange does the money find its way to your possession.

Avoid boot

Ideally, you shouldn’t make any financial gains from a 1031 exchange except for the new property. For further gains, commonly known as boot, are taxable. As such, you need to approach the process with a great deal of care. Otherwise, this is money out of your pocket.

Sometimes, working out the boot might prove tricky as it involves other issues that the selling and buying price.

You need to account for mortgage and other debts. Failing to balance your liabilities on both properties can lead to serious headwinds. Even if you don’t receive any cash back, a decrease in liabilities on the acquired property is considered a gain and as such, taxable.

Factors to Consider when Buying Your First Home

house and keysFirst-home buyers have a checklist when looking at properties for sale. It should be in a nice, quiet neighborhood, especially if they are starting a family. Obviously, it should be within budget, and for millennials, that means looking at a city that’s not too expensive to live in.

If you’re considering a home purchase but don’t know if Utah is the right state for you, these factors will help you decide:

Attractive Mortgage Terms

You don’t just look at an Ogden mortgage loan uncontested and decide it’s the one, at least not if you’re a wise homebuyer. You’ll want to compare all the available options in Ogden and take some time to think about the different terms and rates you qualify for.

There are plenty of things to consider, such as your monthly expenses, other loans, and salary.

Manageable Cost of Living

It’s ambitious to live in Los Angeles or New York City if your bank portfolio is not plump enough. What you’re looking for is a city that allows you to live comfortably without worrying about your savings running dry.

In Ogden and other cities in Utah, you’ll have job options that pay well, so there will be no worries about you going bankrupt if you work and live smart. You can even start saving up for your children’s future and your retirement early on.

Peaceful Environment

No one wants to settle down in a place known for turmoil and crimes. That’s why the price of real estate near communities with high crime rate is lower in comparison with other neighborhoods known for safety and security.

You don’t even want to consider those cheap but compromised neighborhoods; the money you save makes a big difference in your peace of mind.

It’s time for you to settle down and you want a house to get started. Consider the important factors before you make up your mind.

“Explain this, please…” Justifiable Reasons to Pause Closing & Settlement

A Newly Sold HouseClosing and settlement is the last stage of purchasing real estate property. As a new homeowner, you must be eager to get the keys to your house. Reign in your excitement for a moment during closing, however. This stage is an important part of the purchasing process. Because you will essentially be agreeing and committing to all the legal details in the contract, it’ll serve you well to proceed with caution. This is, after all, your last chance to review the paperwork before agreeing to a legal contract.

Take Note of the Details

Not to make real estate sellers sound mercenary, but there is always a possibility that they might include and gloss over additional costs in the paperwork. Be alert and take note of these details; they might be payments you had verbally agreed to in earlier communications or service fees that you overlooked. Not paying it proper attention could come back to bite you later.

Other details you need to double-check are interest rates, escrow costs (which is normally 3-5% of the house’s purchase price), property taxes (if the rest of the year is paid off, you’ll need to refund the seller for the months starting from closing until the end of the year. If the seller hasn’t paid any property tax at all, he or she owes you the sum covering the months prior to the closing date), the title binder and the seller’s mortgage payoff statements.

Calling to Pause

As a property buyer, it is your right to put the closing on hold until the other parties involved have addressed your concerns. If terms are missing from the contracts, or you and the seller agree to make some changes, the lawyers will draft an amended contract. After everything is to your satisfaction, only then should you sign. According to Town Title Agency, a title insurance and settlement service provider in New Jersey, this signals the end of a closing and settlement. All that’s left is for you and your lawyer to receive copies of the closing package.

Don’t rush through the closing and settlement stage of the purchase of your new home. Neither should you feel that you have to please everyone in the room. If something stands out to you and you need clarification, speak up. Your lawyer will be with you to explain things or negotiate terms on your behalf.