But . . . you don't know how to get started?
If you are a First-Time Homebuyer or a Seasoned Veteran Homebuyer, the dilemma can be the same . . . because let's face it, this is not something that most people do every day. So, here are a few pointers for you:
- Find a Realtor to Help You. I really cannot stress this enough. By having your own Realtor, you can save time, save headaches, and save money. Your Realtor can help you save time because they are more familiar with the market and where the best places are to look for just the right house for you. So many folks spend time driving around in neighborhoods that end up being out of their price range . . . or they look through the magazines and call on every house that looks interesting, just to find out that the house is out of their range or has already been sold. That is a lot of time wasted. After you have a counseling session with your Realtor, they can "pre-screen" homes to make sure that they have the things your are looking for and are in your price range. Your Realtor can hep you save headaches because they know the ropes. They know what paperwork needs to be used and what it all means; they know how to help protect your interests by recommending home inspections, special contract addenda, financing options, etc; and they know how to help you steer clear of problems, or how to successfully get through problems that may occur. Your Realtor can help you save money because typically they have had special negotiating training and are practiced at it; they regularly become aware of some great deals before they ever come on the market; they know what "incentives" that local builders are willing to give (even thought the builders may not advertise it); and they can pull a Comparative Market Analysis (CMA) and help you analyze what similar properties are selling for. When choosing a Realtor, make sure that they are a good fit for you (see my post on Selecting the Right Realtor for You . . . it is geared more towards if you are selling a house, but many of the points/questions will work for a Buyer's Agent too). Also, once you have found a good Realtor, stick with them and listen to their advice. Also, most Buyer's Agents are paid through the listing side of the transaction, so you don't have to pay them.
- Get Pre-Approved for Your Mortgage. Before you go out looking for a home is the perfect time to talk to a mortgage company. Not only will this help you establish the price range in which you should be looking, it will help to give you better negotiating power when you do find the right house. How does it do this? Well, think about this . . . if you make an offer on a house and you already have the backing of a strong mortgage company, the sellers know that they have a "real" buyer who can actually purchase their house and they are going to be much more willing to negotiate with you. This is as opposed to someone who makes an offer and has not been to a mortgage company. In this case, the sellers are not really certain that the buyer can buy, and so therefore may not be as willing to come off of their asking price.
- Keep Your Finances Stable Until Closing. This means: don't go buy a new car, don't deplete all of your cash reserves, don't quit your job, don't go buy a new plasma tv (or any other high ticket item). In other words, once you are serious about buying a house, put all of the rest of your spending on hold at least until you have closed on your home.
- Do Your Homework. Get online and do a little research about the area that you are thinking of moving to. This might trigger questions that you should ask your Realtor. This will also help you to determine how much house you can get for the money that you are planning on spending.
I could probably go on and on about the process and all of the things you need to look for . . . but if you follow my advice on item #1 (Find a Realtor to Help You), then your Realtor will walk you through everything.
Now, GO BUY A HOUSE . . . BECAUSE THIS IS A GREAT TIME TO DO IT!!!
Tracy Kirkley
For more information on the home-buying process, check out Tracy Kirkley's Buyers Guide
Tracy Kirkley
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