How to get the best price as a buyer
Buying a home is one of the biggest investments that you'll ever make, so you should only do it after you've done all your research. Most people cannot afford to buy a home outright, and since you will need to finance the purchase, you should get the best price possible. Taking the time to get a preapproval for a loan means a greater chance that your offer will be accepted, and it is better than holding out for a higher offer without guaranteed approval.
Getting a loan preapproval is more involved than prequalifying. It means that you've been approved for a loan of a specific amount, and all financial and background verifications have been done already. All that remains is for buyer and seller to accept the offer and for a home inspection to be done.
Find out what comparable properties in the area have recently sold for, to get an idea of what you should offer. You can check public records at the local court clerk's office to find out their value of the property. You then have the choice of buying from a real estate agent or a private home seller.
It's a lot more difficult to buy through a private seller because there's no one there to help you negotiate. You also need to be knowledgeable of the contract to make sure you're getting exactly what you expect to get. Most people are much more comfortable when they buy from a licensed real estate agent.
However, most private home sellers can offer you a lower purchase price because they don't have to pay realtor fees. You can easily have a legal professional or real estate agent look over the paperwork for a nominal fee in order to ensure its completeness and accuracy.
Homes that have entered foreclosure are usually sold at auction for what's owed, and this is typically done so that the lender can finally collect. To buy a home in this way, you will either need a loan or a line of credit so you can put some money down at auction time. You'll also need to have the house inspected to ensure safety and that you're getting what you're paying for.
