Michigan Real Estate Blog

www.apartmentwealthmachine.com and Lance Edwards Present Apartment Investment Tips and Apartment Investing Tips with Today′s Topic Section 8 Housing. For More Information On Topics Like This Go To: www.apartmentwealthmachine.com

In the last few years, homes have became increasingly owned by single homeowners. Many single people are realizing that there are many benefits to owning a home that aren’t just for married couples.

Single homebuyers face unique challenges in buying. They have to compete with dual-income households, which can be tough when the market is hot and competition is fierce.

But whether you are single or married, some real estate basics hold true. For example, the biggest decision factor for both continues to be the old and true — location, location, location. The neighborhood, price, and closeness to work, school, family and friends are important factors to consider in a home.

With the ever-present economic uncertainty and high home values in many areas, many single homebuyers wonder if they can afford a home. With rising interest rates, this is a valid worry.

In many areas, inventory is slim. Sellers are receiving multiple offers. If you find a home you like, you better be ready to jump on it.

Be ready. Spend time getting your finances in order. Compare different mortgages and lenders so that you find the best plan for you and your financial situation. Go ahead and get pre-approved once you find the right lender. Not only will you know exactly how much you can spend, but you have an extra edge when placing an offer. Most sellers in a hot market only accept offers from pre-approved buyers.

Make sure you know what your requirements are before you begin looking. Think about the square footage, number of rooms and neighborhoods. This will save you time in your search by narrowing down the properties to only the ones that fit your needs.

Consider buying a condo or townhouse. Usually more affordable, this type of housing offers little upkeep, close neighbors and community facilites, such as a pool or workout room. But keep in mind that condo living means little privacy outdoors and virtually no back yard. If you like to entertain outside, it may not be for you.

Keep in touch with your agent throughout the search. Let your agent know that you are a serious buyer. Make sure that he or she understands your needs. You want your agent to call you first when a new listing hits the market. Don’t be afraid to search the MLS listings online and then call your agent with any properties you are interested in.

Remember that there is no such thing as a perfect home. Decide what aspects of a home are most important to you. You may find that you are willing to sacrifice, for example, an extra bedroom for the perfect location close to work.

Base your bid on what you want to offer, not what you think other people will offer. Don’t let yourself be stretched farther than you are comfortable with just to get the home.

Don’t be shy. If you find a home that fits your criteria, jump on it. When markets are hot, as many are in the metro areas, you can loose a home by hesitating. Ask your agent how long you have to decide and take their advice. If they say you have to decide within a few hours, you have to decide.

So you’ve seen your umpteenth infomercial with the guy in his neatly pressed button-upped white T-Shirt grinning ear to ear waving his rock-solid no-money-down rags-to-riches real estate investment course for 3 easy payments of a gazillion dollars (but only if you call now) and now you are thinking, “wow this looks like a great deal, I better get it fast before the special offer expires.” You notice how there’s always a special offer? Anyway, I am not saying this guy isn’t telling the truth, however regardless of which course or school of thought you buy into there are several key areas that one must avoid when engaging in any real estate related transaction.

Pitfall Number 1: Don’t Overpay!

The whole point in investing is to find properties that are undervalued. How does one find out what is undervalued versus overvalued? Without getting into technical details, the bottom line is you need experience. Yes much like shopping for anything else, real estate is essentially one of the highest ticket items in the shopping center of life. It’s advisable to stick with one market, perhaps the one closest to you in proximity as a starting off point. Through your experience and asking the right questions, you will eventually have a feel for the pulse of the market you are looking after, and of course identify what is considered a good buy.

Pitfall Number 2: Know the Market

Yes, you are actually going to have to do more work! This part is really common sense though, but executing it where the beauty and the payoff comes in. How do you make money in real estate? The most basic way is to buy low and sell high. So from the first step, you have identified general trends in the value of homes, and are pretty good at spotting undervalued homes. Assuming you acquire that home, you may want to profit from it by selling it off to someone else for a higher price. How can you do this? Well there are many ways. For one, most markets appreciate in value over time so if you want a longer term approach that will work. Making upgrades to the property will automatically raise the price of the home as well. Think in terms of what the market wants, not what you personally want. You aren’t the one buying it; you are trying to sell it to someone else for a higher price than you bought it.

Pitfall Number 3: Know Your Budget

It may be a fine philosophy to go through life on a whim, but real estate is serious business, and thus diligent financial planning and budgeting is critical to your success. Don’t worry you don’t need to be a finance geek, however you need to be disciplined and know your budget from the onset, or you may be finding you are learning that you need to make certain renovations or upgrades, and didn’t anticipate it going over to a certain cost. Think ahead as to what is needed before actually going forth with investing in real estate.