Tips On Buying A Home In Today's Climate.

Tips On Buying A Home In Today's Climate.

For those who are in a position to be buying, today's real estate market provides many unique opportunities. However, it is vital to have a "game plan" in place, when preparing to buy a home, in order to avoid frustration and disappointment. 

First and foremost, finances need to be in order. If you're purchasing with cash, be ready to provide a bank statement as "proof of funds". If you're going to be financing part of your purchase, be sure to interview several individuals (both lenders and mortgage brokers), to not only see who can offer you the best deal, but to be sure that you're working with a diligent professional. The number one "killer" of deals lately has been finance related issues. You'll want to work with someone who understands our current market environment and who will be able to handle issues, should they arise. Also, with regards to finances, put as much down as you can. If there is anything that the last bubble has taught us, it's that greed mixed with financial leverage can lead to bad situations. Conventional loans require anywhere from 10-20% down, this is a good starting place, but the more the better.

Once your financing is in order, you're now ready to begin working with an agent, if you aren't already. This is where a lot of people make mistakes. Believe it or not, Realtors are humans too (most of us are at least). Not every realtor is going to mesh well with your style of thinking. It's important to spend some time on the phone with a few different realtors. After a few minutes on the phone with you, a good realtor should be asking the right questions to develop an idea of what it is you're looking for. By the end of the conversation, they should have an image of what you're looking for, and should be ready to send properties your way for review (yes, you should review the properties prior to seeing them, this will cut back on a lot of wasted time spent seeing properties that the agent THOUGHT you MIGHT like).

By now, both you, and your agent, should have an image in your heads of what you're wanting. Be specific, however you must also be patient, there is an abundance of properties on the market, many of which are great properties.

It is definitely ok to be selective, after all you aren't buying a pair of shoes (then again, if you only knew how picky I am in buying my shoes... you'd think I was buying a house). However, it's important to understand that with a budget comes a need to compromise on some level. Not many of us have an "unlimited" budget to get a custom tailored home. Make a list comprised of "must-have's" and "would-like's", this will outline those qualities on which you're willing to compromise. Be sure to keep "resale" in mind. Properties that are too "custom" or "unique" have trouble selling, not everyone shares your taste in homes, unless it's your last home, its best to approach a purchase with "sell-ability" in mind. 

Stick to your budget! It's very easy to get excited when seeing all of your options, don't take your eyes off of your budget, remember that you set that budget for a reason and do not veer from it. Also, try not to approach homes that are outside of your budget, banking on the idea that you can "get a deal". Our market consists primarily of "deals". Prices are at the lowest they've been in a very long time, and most home owners are selling because they're at wits end and need to get out from under their mortgage. Although this may present opportunity to capitalize on motivation, that is not always the case. 

Once you find that right home, put a smart offer together. Again, be sure to stick to your budget.

Ok, you have the home locked up in a contract, time to close right? WRONG! INSPECT INSPECT INSPECT! You can never have too much insight into the home you're buying. If you're able to, have a standard property inspection, a structural engineer, and a pest inspection. This should provide a fair amount of information about the home, to make you comfortable with moving forward.

Upon closing, be sure to ask for copies of all documentation, for your records. I like to take a "greener" approach and provide them on a disk, or via email. 

After you've moved in and are relatively settled, don't forget about your agent. Keep in touch with your realtor (a good realtor will keep in touch with you). Check back often, have them run a CMA for you to keep an eye on your home's value.