Whether you are a first-time buyer or an old pro at the real estate game, buying a home can be a daunting process. It’s an emotional time filled with difficult choices—and each decision you make has money riding on it.
Finding the right home to meet your family’s needs is hard enough and knowing how to avoid paying too much for a home once you have found it is another job entirely
In today’s complex, fast-paced market, you cannot afford to learn these lessons through trial and error. The tips contained in this report will go a long way toward making you a savvy buyer.
Tip No. 1
Know what you’re shopping for before you start – Needs vs. Desire.
Before you begin shopping, understand that there are two homes out there vying for your interest—the one that meets your needs vs. the one that fulfills your desires.
When you start shopping, you’re going to find homes you fall in love with for different reasons. That’s why you should list the features you want before you start shopping. Prepare a list and break your list into two categories—“Needs” and “Desires”—and prioritize the items you come up with.
Tip No. 2
Shop for a mortgage lender before you begin shopping for a home.
Getting a pre-approval from a lender before you start looking at homes is the smart way to shop for a home. It tells sellers that you’re a serious prospect, and you know in advance the maximum mortgage you can afford. Make sure you get a Good Faith Estimate commitment in writing. I’ve seen many buyers make the mistake of learning what they qualify for but not getting that pre-approval in writing.
Tip No. 3
Pick a winning team to help you.
From picking a mortgage to finding the right home to inspections to negotiating the best deal, it can be exhausting for even the hardiest souls. That’s why most people have a Realtor® in their corner. To help you with your new home we have a team of Connections Partners listed on this website to assist in your move to your new home regardless if it is in a subdivision, large lot, or has acreage.
A good agent has the knowledge and experience that come from years of helping both buyers and sellers. He or she also has a team of other professionals to put at your disposal—lenders, lawyers, home inspectors, movers, etc.
Most sellers you encounter are certainly going to have professionals in their corner. Having a pro on your team is the best way to make sure you get the best deal possible.
Tip No. 4
Make sure your Realtor® knows what you are looking for.
Once you have a clear, detailed picture of the home you want, make sure your agent has the same picture. This communication is critical. Otherwise, you’ll both waste your time looking at homes you’re really not interested in. Also, make sure your Realtor® knows your priorities. Your shared goal is to find a place that meets all of your needs; your Realtor® will then try to satisfy as many of your desires as possible.
A good Realtor® will ask you several questions about what you’re looking for and what you can afford. And they’ll listen carefully to your answers.
Tip No. 5
It’s a cliché, but...location, location, location.
The desirability and resale value of your home-to-be depend on location more than any other single factor. Again, don’t let emotion get in the way of a wise investment. No home is an island, and the value of yours is affected by the homes that surround it. Ask to see the market analysis for the homes you are interested in buying.
Tip No. 6
Use your agent to narrow the prospect list.
A good agent brings to the table an in-depth knowledge of the current housing inventory in his or her area, and continually updates that knowledge by touring homes as they are placed on the market. This is to your advantage. Trying to personally see every available home that might fit your needs would be an overwhelming process. If you are thorough in communicating your needs and what you can realistically afford, then your agent can help you narrow down the list of prospective homes to those that best suit your needs. This will save you much time and energy.
Tip No. 7
Show a little interest in everything you see.
As you tour the homes on your “short list,” make notes on what you like and don’t like about each home. If the owner is around never let anyone know how badly you want a home—it will cost you money!
Tip No. 8
Shop with your head, not your heart.
Don’t forget the purpose of your “Needs” and “Desires” lists. Shopping for a home is an emotional process. Your heart will cost you money; using your head will save it.
Tip No. 9
Don’t ignore red flags when evaluating a home’s pluses and minuses.
When evaluating the advantages and drawbacks of a particular property, be sure you know the difference between acceptable and unacceptable problems.
Some issues—peeling paint, worn carpeting, ugly wallpaper—are cosmetic and can be easily remedied. In fact, you can use these “problems” during negotiations to lower the asking price—after all, you’ll need to spend money to bring the house up to snuff. Make careful note of what you see that can be used to your advantage. Don’t nit-pick, however—if taken to extremes, you could end up alienating the seller and creating a hostile atmosphere.
Other problems may be warnings to walk away if the seller is not willing to correct the problem. The reasons to walk away are health, safety, or expensive repairs. Major foundation cracks, evidence of previous water damage, signs of serious dry rot or termite damage, antiquated electrical systems or plumbing—any one of these may be cause to reconsider your interest.
Don’t let a house’s positive attributes blind you to very real problems. If you do, the chances are good that you’ll end up spending much more money than you ever expected down the line.
Tip No. 10
Hire a professional home inspector.
In my experience, spending a few hundred dollars on a professional home inspection is the best investment you’ll ever make. A professional inspector brings experience in examining a great many homes, good evaluation standards and an unbiased perspective. And a written report can be an excellent negotiating tool.
A Typical Inspection Looks at:
• Foundation (slab, crawlspace, basement, etc.)
• Electrical, heating and plumbing systems
• &n
