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Central Florida real estate in plain language.

Understand the ins and outs of real estate

Buying real estate is a complex matter and can be especially confusing for the first-time homebuyer. Do yourself a favor and learn as much about the process as you can before you begin.

There are plenty of resources on the Internet, and I will take the time to explain things in plain language.

You may also be able to research the real estate process by attending community-sponsored classes, or you can you can ask me, a real estate professional.

Figure out your finances first.

That means determining how much money you can raise for your down payment and how much you can afford to pay on a monthly basis. Go to a lender to find out the size of mortgage you qualify for and get pre-approved. Better yet, use a mortgage broker to find you the best mortgage rate possible.

When calculating the costs of home ownership, remember to plan for homeowner's insurance, property taxes, private mortgage insurance (if required), utilities, repairs, and maintenance.

Use a licenced real estate agent.

Some people think that selling their home will save money and give them an advantage over the majority of people who use a licenced professional. Before you start down this path, here are some reasons why a real estate professional is very important:

1) You will be drastically limiting your exposure to potential buyers, which means it can take between 10 and 15 times longer to sell your home. Houses that take a long time to sell usually sell for less because buyers believe there must be something wrong with them.

2) Most buyers find negotiating with sellers extremely awkward, and therefore avoid For Sale By Owner situations.

3) Most buyers use an agent in their home search, and most buyers' agents will typically not work with FSBOs because they will not be paid. This means you will have to offer a selling commission to attract buyer's agents, which will cut into your expected "savings."

4) Lack of negotiating experience can result in a lower selling price, or worse, a bungled contract and possible lawsuits. It is probably unwise to pit your negotiating skills against those of experienced professionals.

5) If you plan to use a lawyer to help you negotiate, your lawyer's fees could be considerably higher than your agents commission. Unlike agents, lawyers do not get paid for proactively representing your best interests or mediating delicate situations.

6) You only pay a commission to your agent if they successfully sell your home at a price you are happy with.