Follow these steps with your Buyer Agent to make the experience fun and successful!
1. Consider the location you want! You've probably heard the old real estate joke about "location, location, location," but the point still bears repeating. Location is crucial. Is the house next to RR tracks? How far are you really willing to commute to your place of employment? How good are the local schools, shopping centers, public transportation, seniors services and other public amenities? Will your new home be next to a vacant lot or a commercial property? Even a picture-perfect dream home can be a mistake if it's in an undesirable location, and a poor-location home can be a particularly bad choice if you anticipate reselling the home within a few years. Try not to buy the biggest home in the neighborhood.
2. Make a list. Do you (and your spouse, significant other) really know what you need and want in your home? You'll save yourself many hours of shopping if you make a list ahead of time. Start your list with Must haves, would likes, neutral ideas. Don't forget, cosmetic repairs such as paint or counter tops are minor; structural repairs and additions are major deal killers.
3. Do your homework. Not long ago, consumers had very little access to information about recent home sales prices, market trends, homes on the market, neighborhood statistics and the home-buying process. Today, all this information and more is available on the Web. Go surfing. Get educated. Become empowered.
4. Get preapproved for a mortgage. A qualification on a home price is a function of your household income, your debt, your creditworthiness, interest rates, the type of loan you select and how much cash you have for the down payment and closing costs, among other factors. Rather than guessing or estimating how much you can afford to spend, ask a lender or mortgage broker to give you a full assessment and a letter stating how much you're qualified to borrow. The true amount may be much more or much less than you think. And yes, student loans are taken into consideration when qualifying.
5. Use a checklist. Touring multiple homes is a confusing experience for most people. Rather than relying on memory, make notes about the homes you visit. Turn your priorities into a personalized home-shopping checklist and use it track the features of each home. Try to only view 4 or 5 properties in a row -- otherwise you may get the homes confused.
6. Wear comfortable clothing and sturdy shoes. House-hunting can be tiring, especially if you're relocating to a distant community and want to see a dozen homes in one day (this is only true of relocation -- take your time otherwise and surf on the web whenever possible.)
7. Be prepared to make an offer. House-hunting can also be frustrating, especially if you know in your heart you're not really emotionally or financially ready to buy a home. If you're not ready, don't put yourself through the exercise. If you are ready, go through a blank purchase contract ahead of time so you'll know what decisions you'll face when you make an offer.
8. Relax. Granted, buying a home is a major life-altering event. But it's not worth making yourself insanely crazy or super-duper stressed. Save time at the end of your house-hunting expedition to unwind, calm your thoughts and emotions and keep the whole experience in perspective.
Work closely with your agent and try to have fun!
Next week, watch for my post on the difference between a short sale and a foreclosed property.....
Work closely with your agent and try to have fun!
Next week, watch for my post on the difference between a short sale and a foreclosed property.....
