Buying a Home – Where to Start

Thinking of buying a home and don’t know where or how to start?  What do you look for?  How do you know you aren’t paying too much?  Was that the best deal you could have gotten for your money?  How do you get the best deal?  How much money are you going to have to put into this purchase to make it look the way you want?

These are just some of the questions we hear regularly from clients who are in the market for buying a home. Purchasing a home is one of the biggest financial decisions you will ever make, and can be a pleasant or difficult experience.

Here are a couple of tips to make home buying a little less difficult.

Tip 1 – Hire a Real Estate Professional
Would you invest your life savings into the stock market without getting professional advice from a trained financial advisor? Then why would you buy your biggest asset without getting professional advice from a trained real estate professional? Real Estate Professionals not only research the property and the surrounding neighborhood, but will also help you negotiate in order to make sure you get the best deal possible. As a buyer there is no cost to you for this service, the real estate professional gets paid through the listing agreement with the sellers and you are getting sound advice from a licensed professional.

Tip 2 – Make sure this Real Estate Professional is good at what they do.
Any licensed real estate agent can book showings and drive you around. Make sure you look for a real estate agent or broker who knows the market and is not afraid to voice their opinion about a property. It shouldn’t be about selling you any home to make a quick buck. It’s about finding you the perfect home that fits YOUR needs, no matter how many you have to look at in the process.

Tip 3 – Make a list of your Wants and Needs
Sit down with your real estate agent or broker and make a list of what you NEED in a home, things that are an absolute must, and what you WANT in a home, things that would be nice to have but you can live without.

Example:
Needs: a 3 bedroom home, backyard, double garage and 3 bathrooms.
Wants: finished basement, swimming pool, walk in closets, master suite.

Please keep in mind that “Wants” and “Needs” will always change for individual clients, these are just examples. You may even find your Wants and Needs change throughout your searching process.

Tip 4 – Don’t focus on what can be changed
When you look at a property, don’t focus too much on paint, wallpapers, carpet and furniture. These are things you can, and most likely will, change once you move in. What you should be looking at is the layout, lot size, room sizes and how much money you will have to put into the home if it needs updating in rooms such as the kitchen and bathrooms. Keep in mind that your real estate agent or broker should have an idea as to how much money will need to be invested into the home and can negotiate a better price based on the numbers.

Tip 5 – Go Firm
You’re guaranteed to save money by going in firm on a home purchase. Two main conditions sellers do not like seeing in the purchase agreement is financing contingencies and offers contingent on the sale of the buyer’s property. If you can eliminate these, you have much more negotiating power.

Have your financing in order before looking for a home. You can do this by working with a licensed mortgage broker and getting a pre-approval (not the same as being “pre-qualified”) to find out where you stand financially before making your purchase.

In today’s economy, eliminating the “Sale of Buyer’s Property contingency” can be a challenge, but if you can manage it, it makes you a super-strong buyer in the negotiating stage.

For more information and tips on home buying, contact us or visit our website and we will be more than happy to assist you with your needs.