Homeowners are not familiar with the buying process can often benefit from a few first-time homebuyers tips. It can help to know what they are getting into. Steps in the home buying process can vary from state to state and can depend on local custom, but there are basically only five.
HIRE AN AGENT
You do not hire a buyer’s agent if you prefer to go to open houses or look through a home online. But doing so will save you time and probably a bit of uncertainty as well. An agent can send you listings directly from MLS that fit your parameters. Agents often know of new listings that are about to hit the market before they do. You can burn the agent's gas and not your own when you travel about to tour homes. Some agents will even preview homes for you. An agent can generally spot overpriced listings and advise you accordingly.
FIND A HOME TO BUY
Finding the right home is not always an easy task. You probably won't want to schedule more than seven homes at a time because any more than that will make your head spin. Most buyers do a lot of research before ever stepping foot in a home. They spend an average of six to eight weeks trying to figure out where they want to live. Most buyers end up buying a home after two or three home tours once they've selected a neighborhood.
GET A LOAN
It is not always necessary to have a mortgage broker or bank linked up before buying a home, but it is smart to get loan pre-approval in advance. Pre-approval is not a guarantee that you will ultimately get the financing, but it lets you know for sure how much you can afford.
NEGOTIATE THE OFFER
Buyers sometimes make the mistake of comparing the sales price of a home to other homes they've seen, but this can be a mistake. Sellers can ask any price they like, and it doesn't mean that the home will actually end up selling at that price. An agent can provide comparable sales and pending sales. Comparable sales are similar home types in the same condition and location that have sold within the past three months. Keep in mind that you might have to pay over list price in a seller's market when many buyers are vying for the same inventory. Your agent can give you a reasonable price range and help you manage your expectations. A good buyer's agent knows that there's always more to an offer than its price, but the price is paramount.
DO A HOME INSPECTION
In some states, a home inspection is conducted before buyers make a purchase offer. It's a contract contingency in others. A contract contingency means a buyer has the right to cancel the contract if the inspection turns up problems. Sellers generally aren't required to make repairs if problems are discovered during a home inspection. The inspection is performed for the buyer's edification—forewarned is forearmed.
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