Here is an informative article about some of the things you’ll want to consider before purchasing a rental property or converting your home into one:

If you’re in the market for an investment property right now, you probably know all too well that it’s a seller’s market and that many of the best properties receive multiple offers. So how do you – and your offer – stand out among other buyers? Here are the main factors that most sellers consider when evaluating offers, and what you should think about when putting in a bid of your own:

Price. Although some home buyers still believe that traditional home-buying wisdom dictates they start out with a lowball offer and work up from there in the negotiation process, this strategy can backfire in a strong market like the one we’re in today. Consider making your best offer upfront.

Financing. Some sellers prefer cash buyers above all else because it greatly reduces the likelihood of the deal falling apart and speeds up the closing process. If there are no cash buyers, some sellers prefer buyers with conventional loans who are making sizable down payments. You may have little choice, depending on your circumstances, about your financing options. But at a very minimum, you’ll want to make sure you’re pre-approved before making an offer.

Contingencies. Is your offer contingent upon a home inspection? That’s always a good idea. Beyond that, sellers are likely to balk at buyer conditions or contingencies. For example, in a hot seller’s market, you probably aren’t going to have much success making an offer contingent upon the sale of your existing home or a host of other demands.

Once you get your home inspection report back, you may be tempted to ask the seller to make a variety of small fixes so the home is in move-in ready condition on closing day. Think twice about insisting that the seller complete a series of small repairs, buy a home warranty and/or pay all of your closing costs. The more you ask of a seller, the less likely they are to want to accept your offer. That doesn’t mean you shouldn’t make any demands if the home inspector said it has a bad furnace and roof and that there’s mold behind the walls, of course. It just means that if the home is priced right and in good condition, you may want to consider making small repairs yourself and purchasing your own home warranty rather than asking the seller to do it for you.

Buying a home in today’s market can be a bit challenging. Having a good real estate agent and lender on your side can make all the difference!

Real estate transactions can be complicated. Some of the most complicated of all? Distressed properties. And while it’s never a good idea to try and buy a home without the professional representation of a real estate agent, this is especially true with bank-owned homes and short sales.

Simply put, your agent knows your real estate market and what it takes to buy a home in today’s competitive market. Figuring out how much to offer on a distressed home can be difficult. When was the last time you negotiated with a bank? A bank has a real estate expert on their side; why not have one on yours? In a market of multiple bids and counteroffers, an agent is a must.

Agents can help you decide whether you’re getting enough of a bargain to stick with the often time-consuming and frustrating experience of buying a distressed property – or if you should just walk (or run!) away. Having an agent on your side while you’re buying a distressed property is one of the smartest things you can do to make sure your home purchase is a successful one.