Tips For The First Time Home Buyer

 Everyone knows the housing market has been “down” these days, and the media really hasn’t helped paint a pretty picture. So for sellers I advise not to sell unless they absolutely have to, but for buyers…. now is one of the best times to make the purchase. Coupled with an experienced agent they are getting great deals!

So, get ready to do your homework, plan a budget and act sensibly and you can learn how to buy your first home.

Pre-Approval: While knowing how much you can afford is the first step, sellers will be much more receptive to potential buyers who have been pre-approved. With Pre-Approval, the buyer actually applies for a mortgage, pays the fee for credit checks and income verification and receives a commitment in writing from a lender. This way, assuming the home you’re interested in is at or under the amount you are pre-qualified for, the seller knows immediately that you are a serious buyer for that property. You’ll also avoid being disappointed when going after homes that are out of your price range. List of Needs & Wants: Make 2 lists. The first should include your must haves (i.e., the number of bedrooms, what size yard, a walkable neighborhood, etc.). The second list is your wishes, things you would like to have (pool, formal dining room, crawl space v/s a slab foundation etc.) These items are not absolutely necessary requirements on your new home. Realistically, these lists are not set in stone and you probably will not get everything on either one, but it will keep you on track for what you are looking for.

Interview a REALTOR®: Consider hiring your own real estate agent, one who is working for you, the buyer, not the seller. By default in North Carolina, every real estate agent works for the seller unless there is an agreement with the buyer. Most REALTORS® offer their service free to buyers in which the seller will pay their fee. There are occasions where a seller will not pay and the agent will look for compensation from you. I suggest downloading the Working With Real Estate Agents brochure I have on my Free Forms page. This will give you a better idea of how we work. Each agent you speak with is required by NC law to go over this with you after you start talking to them about any type of information you may want to keep private. They will ask you to sign the back acknowledging he/she reviewed it with you, and you get to keep the rest for your files.

Organization:  With commitment letter in hand it’s time to start looking for that perfect home. Keep handy some of these items that will assist you in maximizing your home search efforts. 

1. A folder file for the properties your agent has sent and/or shown to you and advertisements you have found from other publications. Don’t be afraid to conduct your own research and present what you found to your agent.
2. Paper and pen, for taking notes as you search and visit properties.
3. Digital or video camera to help refresh your memory on individual properties, especially if you are going on a long series of showings.
4. Location: Look at a potential property as if you are the seller. As much as you may think this will be the house you die in, it may not. Would a prospective buyer find it attractive based on school district, crime rate, proximity to shopping, parks, freeway access, or on the flip side, are there abandoned properties, garbage dumps, or source of noise close by that could hinder a future sale?

Visualize: Some homes are not empty so your visualization skills are needed. If the home is still occupied, try to look past the existing decor and “see” the space. Can you imagine your furnishings here? Will the couch fit in the living room? Can you get your california king mattress up to the 2nd floor? Are the rooms laid out to fit your needs?

Be Objective: Buying a home is a highly emotional process. Sometimes the home you fall in love with is one of the first 5 you visit. Sometimes it’s not. Some buyers are amazed they found the ideal house so quickly and choose to look at other properties just so they know they didn’t miss anything. Doing this runs the risk of loosing that perfect home to another buyer. Trust your gut take your time and trust your agent. Ask yourself, Does this home really meet my needs? Do you get the “warm and fuzzies”?

All the above may seem rather overwhelming. That is why having a professional REALTOR® represent you and keep track of all the details for you is highly recommended. Please use the link “Find My Dream Home” to get started or to discuss any of these matters in further detail.