Tips for buyers
Tips for Buyers
Buying a home can be nerve-racking, especially if you're a first-time home buyer. Here are some useful tips to keep in mind when you are buying a home whether this is the first you buy a home or if you have previously bought a home(s).
Hire an Agent
Buyer’s Representation is Free.
Make sure you have someone looking out for your interests. When sellers negotiate with a realtor the commission they will pay for selling their homes that includes paying the commission that will be paid to an agent representing you. Take advantage of it.
Get Pre- Approved not just Pre-Qualified
Being pre-approved for a loan gives you certainty and peace of mind. This is because you know that your home loan will be approved thus, allowing one to focus on finding a home. Your offer will carry more weight once you are fully approved for the home loan in advance.
It’s OK to not Know Everything When You are Buying Your First Home.
Some people want to do tons of research and watch all the TV shows before taking the step into home ownership. And that may be helpful but it’s perfectly ok to have the desire and the finances to buy a home and move forward without knowing everything. Buyer’s agents exist for a reason! Hire a qualified real estate agent who can guide you through the process and answer the many questions as they come up. Look for an agent who not only knows the market well but who understands your needs as well and someone you communicate well with.
Communicate Clearly With Your Agent.
Real estate is a business built on trust!
The more specific you are with your Realtor as to what you are looking for, the more helpful your Realtor will be. Simply telling your Realtor, “I want a three bedroom house with two bathrooms” isn’t enough. Your agent will keep your criteria in mind when running searches for you, when they talk to other Realtors, and when they preview homes.
Sit Down With Your Agent and Let Them Walk You Through the Process
If you are a first-time home buyer, you’ll have lots of questions, and our job is to help you navigate through this and prepare you, as best as possible, for what exactly you’ll be experiencing — we will set realistic time frame goals and expectations on what your money can buy. If your agent is “too busy” or doesn’t have the desire to educate you on what buying a home looks like, you may want to consider interviewing someone else who truly cares about you having the best experience possible.”
Buy The Home You Think You Will Need 3 to 5 Years from Now
Let’s say a single young adult wants to buy a home and finds a nice one-bedroom; that’s great and enough space. However, chances are the buyer will find someone, fall in love, even welcome a child; then the young home buyer will need to go through the sale of the current home and find another home. It is wiser to buy the kind of home you’ll need in the near future; Over time you will fill it with stuff, pets, hobbies, and love.
Look beyond the staging
The psychology of staging homes does work; staged houses look far better than houses that are still being occupied. When you are considering a house, mentally try to remove the staging. Pay more attention to the layout of the house and the structure itself. Ugly wallpaper and paint can be easily fixed later.
A word about flipped homes
A flipped home is one that was bought recently by an investor, renovated and upgraded, and is re-sold within a couple of months at a much higher price for profit. These homes obviously are more attractive to buyers who are usually willing to pay a premium since the home is “move-in ready”. This reasoning may be ok especially if you won’t have sufficient funds after you purchase your home for home improvements. However, often times buyers discover that after they purchase these homes the quality of materials or workmanship isn’t the best.
Don’t go for shiny! If you find a home that meets your criteria and it’s not improved but you can live with it and do the improvements or upgrades you’d like later, chances are you will save some money and will be able to select quality materials and qualified trade persons to do the work.
Look at ALL the Expenses When You are Budgeting for the House
When budgeting for the house, don't stop with principal, interest, taxes, and insurance; add in utilities, cost of commuting and upgrades. Call the utility companies that service the house you are considering and ask for an estimate of what the cost will be, as well as talking to residents of that area. Will the gas budget for your car go up if you are moving further away from the places you frequently visit? Budget all of these expenses and see if you can still afford the house.