First Time Home Buyers Tips And Advice

This week Coldwell Banker has written a series of blog posts in commemoration of first time home buyer week. They have written some great articles and provided the general public with lots of information to help them along buying a home. You can visit the blogs posted about it at blog.coldwellbanker.com #FirstHome.

What i wanted to do today in keeping with the theme they ran all week is list the things i noticed and try to help advice my buyers on that are first time home buyers. I sell an extensive amount of homes to first time home buyers and they are definitely different than ones that have purchased homes in the past in terms of knowledge and how the process works.

First, I always ask them to put together two lists for me. One list is of the needs in the house. Things they absolutely have to have in a house. Like four bedrooms, 3 bathrooms, 1500+ square feet, garage, back yard, office space, etc.... The second list I ask for is there wish list. Besides the needs what would your ideal home have in it. Granite countertops? Jacuzzi tub? Master suite on the lower level? Updated kitchen? Hardwood floors? etc... You get the idea.

the reason i do this is i start out looking for homes for them that fit there wants and needs. I send that list first and start our search that way. At the same time I send them another list fo homes that fits just there needs but may have some or none of the wants in there as well. this allows them to pick out homes and decide if their wish list is to unrealistic or not....

Second, I never ask a potential home buyer what they want to pay for price. I ALWAYS ask them what you comfortable with in regards to monthly payments are. You are not being married to the price for the next 30 years (if you stay that long) but the payment. A few thousand dollars one way or the other will not dramatically alter the payment. but if I know what they want for a payment and the type of loan they are looking to do (FHA, conventional, or VA) then I can back into a maximum price point I know they can comfortably afford that will keep them in their desired payment.

the best part of it is i can put in the maximum price (which usually i inflate $5000 to $10,000) to cover negotiations and it will give me everything that is at the highest that price and all the way down to the lowest price. So, I am not taking out any homes for being to low in price but capping them at a price. This way they know looking at all the homes; the most any of them is going to cost them is the max monthly payment they gave me and may be less depending on the house.

Third, I tell them that having your parents come along and give you advice is great. But ultimately it is your decision to make and only you can make that decision. Just because your parents may not like the house does not mean it is not a great deal for you. You are the ones that are going to be living there and making the payments. it may sound harsh...I know since I have high schoolers right now that do not listen; but unless I am making that payment for them; all I can tell them is what I think and to make sure they are happy with their decision.

Fourth, decide on an area you want to live and look at the neighborhood and style of homes and price points and make sure it is something that you can afford. One thing i ALWAYS tell my buyers that are first time home buying; "Do not overpay for a house based strictly on the neighborhood". Yes you may not be exactly where you want to be. But another three to five minute commute may get you the right house and at the right price....

Too many times I see clients that want to live in one place but it would be stretching their budget and I advise them to look somewhere else for now. In three to five years you can sell and move to the area you want to live (if that is still the area you want to be in). But do not over pay. When you own a home you have additional costs associated with repairs and maintenance you do not have when renting.

Fifth, talk to a mortgage professional about your mortgage needs upfront. You may even need to shop around and talk to more than one. Make sure you find one that you are comfortable with and feel is working in your best interest. Just as you would want with your Realtor. You want a Realtor that understands your needs and wants and will help you find the right house.

To many times I hear people ask me the question that it may take a while to find a house. My answer is always the same. So? The decision is ultimately yours and I am here to guide and help you along the process and locate some homes that will work for you. I have had clients find homes in a week and others take 6 months and everything in between. I have had clients look at 6 homes and select one to buy and others that literally looked at 100 + homes before making a decision. It does not matter to me as long as you are happy with your decision. I am not in it for the short term but the long term....And I live by one simple rule: "treat others as you would want them to treat you".

Dave diCecco
Realtor/Broker
Coldwell Banker United
Cell:704-519-7895
ddicecco@cbunited.com
www.davedicecco.com