Home Buying Tips: ACT 1

Is now the time to buy a home. This question is asked daily across the globe. My straight forward answer: If you can secure a mortgage loan now is the time to buy. My follow up question to the asker is: Do you know what you need? That answer usually fluctuates with every house you have been shown. A majority of buyers view home in their desired neighborhood, accumulate addresses, record prices to develop their shopping list and drive around looking and hunting...long before they contact a realtor. Fewer take the time and energy to list their needs, wants and desire with as much gusto. There is a huge difference between what you want and what you need. How much money to spend on your investment is Key! A budget consideration should be the absolute maximum price you can afford monthly and still have money to live on, and money you have left to take care of emergencies and life's luxuries (i.e eating out taking a trip, going to the movies, health care, etc.). The term "living within your means" seems to escape this culture. "Keeping up with the Jones" and status symbol houses have helped lots of people land in the economic challeges they are facing. Something for nothing is still a bad deal in my opinion and careful scrutiny of loan offerings is a must. Of course you need to consider: how many bedrooms, kitchen size, appliances, the age of a home, schools, location and sundry things. Have you really considered how long you will leave there; what will the resale value of the house be; how much would it cost me over time to remodel/fix my home; how will future real estate taxation or utilities effect me; what predicament will I be in if I lose my job tomorrow; if I am relocated what will I do with my home? If interest rates are ideal today, why would you wait for home values to go up along with interest rates? When you choose a realtor to work with, your needs in a home must be clearly defined (write it down). It's not fair for the realtor to have to play negotiator between two buyers of one property who want entirely different things. Once the realtor understands what those are it is so much easier to find specific homes that meet those standards and more importantly the homes that are available. God bless the buyers that come with fifty houses they want to see that they found while committing drive-by house hunting or that they found during their marathon web surfing. There is no better search then the realtor's search which is "real time" and "not under contract" or "SOLD." Special Tip: you will have a better time being shown homes without hungry, restless, and unruly children tagging along. They will embarrass you, annoy, you and constantly ask: can we go home now? To be continued