Buying Secret #10: Keep Your Money Where It Is
It’s
not wise to make any huge purchases or move your money around three to
six months before buying a new home. You don’t want to take any big
chances with your credit profile. Lenders need to see that you’re
reliable and they want a complete paper trail so that they can get you
the best loan possible. If you open new credit cards, amass too much
debt or buy a lot of big-ticket items, you’re going to have a hard time
getting a loan.
Buying Secret #9: Get Pre-Approved for Your Home Loan
There’s
a big difference between a buyer being pre-qualified and a buyer who
has a pre-approved mortgage. Anybody can get pre-qualified for a loan.
Getting pre-approved means a lender has looked at all of your financial
information and they’ve let you know how much you can afford and how
much they will lend you. Being pre-approved will save you a lot of time
and energy so you are not running around looking at houses you can't
afford. It also gives you the opportunity to shop around for the best
deal and the best interest rates. Do your research: Learn about junk
fees, processing fees or points and make sure there aren’t any hidden
costs in the loan.
Buying Secret #8: Avoid a Border Dispute
It’s
absolutely essential to get a survey done on your property so you know
exactly what you’re buying. Knowing precisely where your property lines
are may save you from a potential dispute with your neighbors. Also,
your property tax is likely based on how much property you have, so it
is best to have an accurate map drawn up.
Buying Secret # 7: Don’t Try to Time the Market
Don’t
obsess with trying to time the market and figure out when is the best
time to buy. Trying to anticipate the housing market is impossible. The
best time to buy is when you find your perfect house and you can afford
it. Real estate is cyclical, it goes up and it goes down and it goes
back up again. So, if you try to wait for the perfect time, you’re
probably going to miss out.
Buying Secret # 6: Bigger Isn’t Always Better
Everyone’s
drawn to the biggest, most beautiful house on the block. But bigger is
usually not better when it comes to houses. There’s an old adage in real
estate that says don’t buy the biggest, best house on the block. The
largest house only appeals to a very small audience and you never want
to limit potential buyers when you go to re-sell. Your home is only
going to go up in value as much as the other houses around you. If you
pay $500,000 for a home and your neighbors pay $250,000 to $300,000,
your appreciation is going to be limited. Sometimes it is best to is buy
the worst house on the block, because the worst house per square foot
always trades for more than the biggest house.
Buying Secret #5: Avoid Sleeper Costs
The
difference between renting and home ownership is the sleeper costs. Most
people just focus on their mortgage payment, but they also need to be
aware of the other expenses such as property taxes, utilities and
homeowner-association dues. New homeowners also need to be prepared to
pay for repairs, maintenance and potential property-tax increases. Make
sure you budget for sleeper costs so you’ll be covered and won’t risk
losing your house.
Buying Secret #4: You’re Buying a House – Not Dating It
Buying
a house based on emotions is just going to break your heart. If you
fall in love with something, you might end up making some pretty bad
financial decisions. There’s a big difference between your emotions and
your instincts. Going with your instincts means that you recognize that
you’re getting a great house for a good value. Going with your emotions
is being obsessed with the paint color or the backyard. It’s an
investment, so stay calm and be wise.
Buying Secret #3: Give Your House a Physical
Would
you buy a car without checking under the hood? Of course you wouldn’t.
Hire a home inspector. It’ll cost about $200 but could end up saving you
thousands. A home inspector’s sole responsibility is to provide you
with information so that you can make a decision as to whether or not to
buy. It’s really the only way to get an unbiased third-party opinion.
If the inspector does find any issues with the home, you can use it as a
bargaining tool for lowering the price of the home. It’s better to
spend the money up front on an inspector than to find out later you have
to spend a fortune.
Buying Secret #2: The Secret Science of Bidding
Your
opening bid should be based on two things: what you can afford (because
you don’t want to outbid yourself), and what you really believe the
property is worth. Make your opening bid something that’s fair and
reasonable and isn’t going to totally offend the seller. A lot of people
think they should go lower the first time they make a bid. It all
depends on what the market is doing at the time. You need to look at
what other homes have gone for in that neighborhood and you want to get
an average price per square foot. Sizing up a house on a
price-per-square-foot basis is a great equalizer. Also, see if the
neighbors have plans to put up a new addition or a basketball court or
tennis court, something that might detract from the property’s value
down the road.
Today, so many sellers are behind in their property taxes and if you
have that valuable information it gives you a great card to negotiate a
good deal. To find out, go to the county clerk’s office.
Sellers
respect a bid that is an oddball number and are more likely to take it
more seriously. A nice round number sounds like every other bid out
there. When you get more specific the sellers will think you've given
the offer careful thought.
Buying Secret #1: Stalk the Neighborhood
Before
you buy, get the lay of the land – drop by morning noon and night. Many
homebuyers have become completely distraught because they thought they
found the perfect home, only to find out the neighborhood wasn’t for
them. Drive by the house at all hours of the day to see what’s happening
in the neighborhood. Do your regular commute from the house to make
sure it is something you can deal with on a daily basis. Find out how
far it is to the nearest grocery store and other services. Even if you
don’t have kids, research the schools because it affects the value of
your home in a very big way. If you buy a house in a good school
district versus bad school district even in the same town, the value can
be affected as much as 20 percent.
Lake Marion is the largest lake in 
Located in five of South Carolina's counties including: 
This aerial rendering of Summers Corner shows the 6,000-acre development plan. (Rendering/Provided/MWV)
