Top 4 Mistakes Homebuyers Always Do – Local Records Office

LOCAL RECORDS OFFICE — Getting excited about the home buying process and wanting to jump in immediately is a common reaction to most people says, Local Records Office. Having the realtor chauffeur you around to look at beautiful homes and neighborhoods, holding the door for you, etc. I mean, it feels like you’re a celebrity for a day. However most buyers make common mistakes which always cost them time and money.

Here are 4 mistakes buyers make when shopping for a new home:

  1. Not Having Their Financials In Order

It’s OK to have fun during the process, but not coming prepared can quickly turn the excitement phase into a panic phase if you don’t have your financials in order. A pre-approval for your home loan and/or proof of funds letter for the down payment is one of those golden things that sellers look for to let them know you are serious and not wasting their time.

Always have several versions of your proof-of-funds letter and your pre-approval handy at all times. This will put you above the competition when you find a home that you want to go after.

  1. Not Researching The Neighborhood

Knowing a neighborhood by only listening to what your realtor is telling you, as opposed to actually researching the neighborhood, are night-and-day differences says, Local Records Office. It’s important for you to actually speak to the locals at “Mom-and-Pop” stores, cafes, restaurants, markets, etc. Immersing yourself into the neighborhood as a “local” will allow you to catch information that will not be disclosed by your realtor. This will give you a clearer picture of your surroundings. Always, go back to the neighborhood at nighttime. It amazes me how one neighborhood can be in the daytime vs. night. Loud music, parties, etc. can sometimes be observed only at night. So it’s a good idea to drive by a few times to see what’s going on after the sunsets.

  1. Not Mentally Preparing To Deal In “Large” Numbers

Your home is (for most of us) the largest purchase you will make in your life says, Local Records Office. Now consider how you live your daily life – shopping at the market, buying gas for your car, shopping for clothing, etc. Your mind is constantly dealing with “smaller” amounts of money; i.e., “how can I save $10 on this shirt/blouse” or “Wow, the price of avocados really go up”.

Also, if you are getting a mortgage, think in terms of how much your monthly payment will be instead of thinking always in terms of the sticker price of the home. Sometimes adding another $20,000 on to the purchase price of the home, really doesn’t amount to much of a change in your monthly payment.

  1. Not Doing Proper Research On Their Realtor

Local Records Office says, “Seeing a working real estate agent can be deceptive”. From the surface, it looks pretty easy – I mean, showing a home and talking about the view, the kitchen, etc. while wearing some fancy shoes and expensive car lease – How hard can it be??

The truth is agent’s deal with enormous amounts of stress and complications. Many of them are expert problem solvers, have “insider” information about properties/areas and can get you a great price on your home from their negotiation skills. Just like in any profession though, there are the good and the bad. An inexperienced agent can cost you time, money and can actually minimize your chances of finding the property you really want.

Always research your agent, thoroughly. I’m not talking about looking about their rave reviews on their own website, but actually speak to their past clients says, Local Records Office. If they’ve sold a home in the neighborhood, don’t be afraid to knock on the door and say that you’re thinking of moving there. Ask the owner about the agent and how their experience was with them.

To learn more about homebuyers and real estate go to www.LocalRecordsOffice.co

4 Disturbing Experiences Homeowners Go Through While Buying That No One Speaks Of – Local Records Office

LOCAL RECORDS OFFICE: Let’s face it, buying a home is a tiring and sometimes a scary experience. However, home buying sometimes can be just plain annoying. Here are four common occurrences to be prepared for when buying a home.

For first-timers, buying a home can be an intimidating and terrifying experience, punctuated by moments of uncertainty and utter frustration says, Local Records Office. You might wonder what strange land you’ve wandered into and feel like you’re about to completely lose your mind.

READ MORE: When Being a Real Estate Agent Becomes Dangerous – Local Records Office

If you know what to expect heading into the home buying process, you can navigate it like a cool-headed pro and keep from being a funny story at the real estate agency’s holiday party.

Local Records Office says, “when buying a home stressful things will happen at many different junctures, and chances are you’ll experience at least some of these possibilities”:

  1. Dealing With Disorganized Real Estate Agents

You find a great house online and call the listing agent, expecting someone who’s eager to make a big sale to answer the phone and quickly set up an appointment. Much to your disappointment, you get sent to voicemail and are forced to leave a message. A day or two goes by without any sign of life, and you start to grow impatient or perhaps a little angry at the home buying process. Do they not care? Did the house already sell? What is it?

Local Records Office says, “agents deal with many properties at the same time when buying a home”. One will call you back, and when she does, she’ll set up a time to see the house within the next few days. This, too, will be annoying to you. You’ve now waited almost an entire week to see the property — but don’t freak out. You’re on the schedule.

READ MORE: The Dark Side of Being A Real Estate Agent – Local Records Office

When you finally arrive at the house for your tour, the agent will likely struggle to get the key out of the lockbox. He or she will shuffle through a stack of papers and perhaps make a few phone calls in search of the right combination — and you’ll be standing there, dwelling on the five days you’ve spent arranging this visit.

Don’t lose your cool. He’ll find the combination, he’ll open the door, and you’ll get to take a long-awaited tour of your dream home.

  1. Going Back and Forth With the Original Deal

Loving the house as you do, you want to make an offer. Your agent will need to gather a lot of paperwork before this can happen — a home buying process that can take a few days. Be sure to remain patient here; this is just the beginning of what will likely be a long, tedious process.

Once you get all of the paperwork together and sign what feels like hundreds of documents, you’ll submit an offer you think the seller just has to accept. You envision the seller jumping for joy when he sees how reasonable it is, and you’re convinced he’ll say “yes” on the spot — but this almost never happens. You might not hear anything for days.

Local Records Office says, “once the seller does respond, you’ll be extremely lucky if he accepts your first offer”. He’ll probably make a counteroffer, and if you’re not crazy about it, you can choose to counter that offer, and he can counter your counteroffer — and so on. Each round of offers when buying a Home requires a fresh batch of signatures and paperwork, and this can stretch on for days or weeks. You’ll want to freak out every time you hear the word “counteroffer,” but don’t; this is a natural part of the home buying process.

  1. Piles and Piles of Paperwork

If you thought your real estate agent liked paperwork, wait until you meet your lender.

You’ve already been pre-approved for a loan, but now that it’s time to apply for an actual loan for an actual house, you’ll be asked for copies of financial documents you never knew you had. It will seem ridiculous, and you’ll wonder why he didn’t ask for all of it in the first place. Just remember the lender is on your side; he wants you to get this house, so don’t freak out.

READ MORE: Local Records Office is Rising Over The Competition Focusing on Quality Over Quantity

If you’re applying for an FHA loan, that can take 30 to 45 days to process from the date of the purchase agreement. It’s a long time, but that’s just how it is when home buying. Don’t let it get to you.

  1. Wary Home Inspection

Before a lender will approve a loan, he’ll require a home inspection. Inspectors make a living off of finding a multitude of defects, so be prepared for your delightful little dream home to have a termite problem, a leaky roof, mold growing in the basement, or electric wiring that needs repair. Unless it’s a brand-new house, nothing in that inspection report should shock you.

Once the list of issues finds its way into your hands, it’s normal to ask the seller to shoulder the cost of a few of the repairs. This in itself can be a negotiation process when home buying, so be prepared for some back and forth. It’s worth it to have most of the problems fixed before you move in. That way, you can focus on enjoying your new home, rather than focus on finding a plumber to unclog the basement sink.

If the inspection report is especially scary, consider asking the seller to pay for a one-year home warranty. This will end up making any further issues that pop up much, much cheaper to fix.

There will be times during the home buying process that will make you want to give up and live in a van down by the river. But if you keep a cool head throughout the not-so-cool parts of this experience, you’ll have plenty of reason to celebrate. Throw a big party for your family and friends, put that patio to use, and make some new memories.

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People Are Buying Properties to Rent Out With Low Rents. This is Why – Local Records Office

Local Records Office – In this article, I am going to tell you how you can make money with low rents; the two primary reasons why landlords keep their rent below market; and how you can profit handsomely because of it says, Local Records Office.

I am a value investor. What does that mean? That means I look for opportunities in the marketplace where I can buy a property that has a small problem, fix that problem and make a bunch of money because of it. In the market place, this is called “value add.”

If you want to maximize your return on your real estate investments, you should be buying a property that has a value add component says, Local Records Office.

One of my favorites “value add components” is buying a property that has low rents. Of course, when we buy a property with low rents, we are going to buy the property based on the actual cash flow of the property. Therefore, we are going to buy based on its actual numerical value.

READ MORE: How to Rent Your House, FAST

I stress this because some brokers and sellers try to sell properties based on “pro-forma” numbers. If you swap the word “pro-forma” for the word pretend, they you will understand the value of these numbers.

With income properties, we always determine value based on actual cash flow. This is step one to making money with low rents.

The next step is to understand why those rents are low. When I say low, I mean they are not at the market rate, but below it. Typically, rents are kept low for two reasons.

Local Records Office says, “The first reason is landlords are afraid to increase rents because they are afraid tenants will call and ask for repairs to be done to their properties”.

This is crazy because if common repairs are not done on a regular basis, those repairs will get worse and will cost a lot more money to fix. The money to fix them could have come in the rent being brought to market.

READ MORE: 7 Ways To Reduce Your Electricity Bill

Plus, the more wear and tear an apartment has, the lesser quality tenant you will get who will accept that type of living condition. Now not only do you have a property that has lost value because of needed repairs but also you have less quality tenants who will turn over more often, costing the owner lost rent from vacancies.

The second reason is landlords are afraid the tenants will move out if they raise the rents. Well, if you are taking care of your tenants like you should be, treating them like the gold that they are– let’s face it, your tenants are you business’ cash flow, and you’ve got to take care of that income stream– and you raise your rents to the market rate, your tenants will not leave.

Why won’t they leave? Because you are taking care of them properly and they won’t be able to get a better deal somewhere else with the same quality ownership says, Local Records Office.

So we scour the markets for owners who have these erroneous mindsets and buy their properties from them based on the current cash flow stream.

READ MORE: Top 5 Real Estate Scam

When we take over the property, we do an evaluation of the property. We make the necessary repairs, if any are needed. Sometimes there are some needed and sometimes there are not. Then we have the management company start raising the rents as the leases start to renew.

Since leases are typically a one-year term, and all lease contracts are transferred to the new owner, it takes a full year to raise all of the leases. But as the year goes by, your cash flow is getting higher and higher and more importantly, the value of the property is getting higher and higher. And, all you did was do what the previous owner should have done– do regular repairs on the property and raise the rents.