Real Estate Investing Tips for Buyers
If you’re buying a home for investment purposes, you might think of yourself as a seller too. What would make any seller extremely happy? Answer? A reasonable return on one’s investment! This advice from Realty ONE Group agents can help you find a solid investment for your money.
Unless you’re a cash buyer, you’ll have to be lender approved for a mortgage amount not to exceed a certain price point. That lender approval tells the seller your credit is good, your income is sufficient, your down payment is 20 percent. Lender rationale is the more skin in the game, the less likely you’ll walk away.
However if you don’t have 20 percent, it’s still doable but in a competitive market the more down payment the better. Last year according to Inside Mortgage Finance, 1.9 million borrowers or 80 percent of all borrowers put down less than 20 percent.
And really excellent news for the buyer. According to Freddie Mac, mortgage rates on a 30 year fixed mortgage were 3.61 percent for week ended May 5.
Here’s another way to enhance your offer. Typically contractual language says, regarding the home inspection – if repair issues arise, the seller may be required to pay for all or part of the property repair. You can waive that. Good for seller. It also helps you flip homes, although be warned that according to real estate investor Kuba Jewgieniew, it may result in a lower sales price. If time is of the essence, be prepared to sacrifice in other areas.
Your contract should say you have the right to terminate if you’re dissatisfied with the findings of the home inspection. Good for buyer.
So jump ahead of your competition by offering the best contract terms and conditions you can.