Anyone interested in buying property in the USA will have a careful eye on the endless promotions for discounted property there, but the resounding message coming from experts is to take care when you purchase.

 

With prices still falling in many parts of the country and homeowners continuing to fall victim to foreclosure, any potential buyer should do thorough due diligence. With this in mind, a property expert in Florida has suggested these are 10 tips for helping you buy safely:

1. 1. Know your timeframe
      Are you looking to stay in an area for five years or more? Or are you expecting to move locations? If moving to the USA, it might be more viable to rent before buying.

 

1. 1. Understand the ways to finance a home
      These days most mortgages require a 20% down payment, better-than-average credit and are subject to more scrutiny.

 

1. 1. Prioritise what you want from a purchase
      What do you want in a home? What do you need? Prioritise these qualities, and find your home based on what is really important to you.

 

1. 1. Evaluate your financial limitations
      How much of a home can you truly afford? The old rule of thumb was three times your annual salary; now it is closer to 2.5 times your salary. Throw in additional expenditures and also consider maintenance and property taxes.

 

1. 1. Look at renting vs. buying
      Many homebuyers – especially today – believe buying is too costly and choose to rent instead – this may make sense for you. You should also consider lifestyle – many tenants like the flexibility that comes with renting for employment reasons.

 

1. 1. Consider the home foreclosure market
      If you choose to buy, there are plenty of foreclosure listings out there that are incredibly affordable and available. Some may need work, but the price savings are substantial.

 

1. 1. Choose a buyer’s agent
      A buyer’s agent is a buyer’s best friend because he or she is interested only in the buyer’s interests, and therefore will represent you entirely. Plus, they frequently are paid by the sellers, so their services are essentially free.

 

1. 1. Always make a lower bid
      Don’t hesitate to haggle; throw in a low-ball bid and work from there if you can. This is a buyers’ market, and you should take advantage and get the best deal possible.

 

1. 1. Seek out pre-approval
      If you are financed through a mortgage lender, get pre-approval before you go house-hunting. This is a required step in many locations for foreclosures and REO homes, and is a valuable tool to use to show sellers that you are ready to buy.

 

1. 1. Use a currency specialist
      When you need to exchange pounds into dollars and send them to the USA for your purchase, use currency specialist Smart Currency Exchange. Smart offers better rates than high street banks and has a range of contracts designed to benefit property buyers.

 

To understand the full step-by-step process to buying a property in America, collect The Overseas Guides Company’s ‘USA Property Buying Guide’