5 Tips for Home Buyers
Buying a home is the biggest financial decision most people will ever make. It's not something to jump into and hope it all works out. You need to do your research and have a game plan before you start.
Here are 5 tips to help get you started.
1 - Know what you can afford. This should go without saying, but it is the first step. Look at your budget and decide how much you can spend each month on a home. Don't forget, that not only will you be paying principal and interest on your home, but you will also need to pay taxes and insurance and budget for maintenance items as well.
2 - Get pre-approved by a lender - This helps the seller know that when you make an offer on their home, most likely the loan will go through ok. (But remember, what you qualify for and what you can afford are two different numbers. If a lender qualifies you for more than you have determined you can afford, stick to your budget.)
3 - Find a REALTOR® you can trust. As I mentioned in the beginning, this is a large purchase. There are a lot of details and paperwork and inspections, etc to keep track of. Don't try to do it yourself. Did you know that as a buyer, a REALTOR® doesn't cost you anything? The seller pays the commission to her agent and to the buyer's agent! So since the seller will have an agent working for her to get her the best deal they can, you need someone on your side.
4 - Shop, shop, shop and then stop - Look at several homes. This will help you narrow down the things you really want in a home and the things that are nice but not necessary. Then after looking at several homes and finding one you love, make an offer and stop shopping. If you find a home you like better and your offer is accepted you will have a sense of buyer's remorse. But if you quit looking, you won't know about that "better" home. Yes, sometimes ignorance is bliss.
5 - Listen to your agent's advice on your offer. It is tempting to offer a low price so you have room to negotiate, but in a seller's market where homes can go for 10%, 20% or more above asking price, your low offer won't even be looked at. Your agent knows the market. He knows what homes are worth and what they are selling for. He knows what offer will at least get you in the running for that home. So listen to him and work with him to come up with a competitive offer. And yes, sometimes that offer will be lower than the asking price.
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