Property Pig™ - Real Estate Without Commissions

How to make an offer.
How to negotiate price.
Should I buy or rent?
When do I apply for financing?

How to make an offer.

After you’ve looked at the properties for sale, and found the one you like, it’s time to make an offer. Check pricing on Zillow, local newspaper advertising, RealEstateABC.com and Realtor.com to make sure you know what properties are selling for in your area. Then, decide what you want to pay for your property. Go to the Buy Tab and in the Buy Property column click the Make Offer link. Fill out the offer form so the Seller can receive and respond to your offer.

How to negotiate price.

You should understand the prices of properties in the neighborhood you’ve chosen. The Seller knows those values too. You should both be realistic about what is a fair price for the property. Offer the fair price. If the Seller agrees, you have a deal. If he asks for a higher price, you can agree, or ask him to lower his asking price. One way to get the Seller to lower the price is to already have your financing in place, and be able to close escrow quickly. You can often get a discount for a fast closing.

Should I buy or rent?

Usually buying is a better deal because you get both tax benefits and appreciation. If you own your property you can deduct the interest you pay on your loan from your income taxes. Check with an accountant to understand how this may affect you. In general, you can deduct interest on up to $1,000,000 in 1st mortgage loan, and $100,000 in 2nd mortgage loan. Also, when you own your property, you get to keep any profit if the value of the property goes up while you own it, and historically, over time, values of real estate go up.

Renting might be better if you have cash flow problems, and need a lower monthly cost, or you don’t think you will be staying in the same area for long. Some people think they can’t afford a property because they don’t have a down payment, but many loan programs exist now to solve that problem. Talk to a lender about whether your income qualifies you for a loan, and what loan you can afford. You can find a lender on our Buy a Property Page by clicking the Get Loan link.

When do I apply for financing?

The best time to apply for financing is immediately, so you can get pre-qualified with your lender. Then, you will know just how much property you can afford to buy, and you will be in a better position to negotiate with the seller because you will already have your loan in place.