Home Buyer Essentials
Are you a first time home buyer? Have you bought and sold many properties? It is always a good idea, regardless of your level of home buying expertise to follow these important tips when taking the plunge on your next real estate transaction.
1. Your Agent – When selecting a real estate agent try and find someone who is familiar with your situation. First time home buyers need to work with agents that have experience working with first time home buyers. There may be loan programs and incentives that they can introduce you to that can benefit you greatly. If you’re an investor than find an agent that understands the dynamic nature of their market and where the good investments or passive income are to be had.
2. Lender – Find a loan officer and lender you are comfortable with and you can trust. Be aware that if it sounds too good to be true than read the fine print. If you are comfortable working with a lender but you find a better rate elsewhere, give the lender the opportunity to match the best terms and rate. Make sure your lender gives you a good faith estimate or GFE that includes factors such as property taxes, local area assessments, home owner association fees and community fees if they apply. If a rate is substantially lower than the competition, the lender is most likely charging you points or additional fees to lower the rate.
3. Location – You can change a home but you cant change it’s location. First time home buyers are often enticed to buy a larger nicer home in a less desirable location. Take into consideration your lifestyle and the benefits of being close to amenities. An hour commute may not be worth it to have a granite countertop.
4. Does it Feel Right – Your home evokes a feeling as much as a place to protect you from the elements. Make sure that you feel comfortable in your new home. Most buyers know in the first 15 seconds whether it is the right home for them. Trust your instinct.
5. Seller Disclosures – When you receive disclosures from the seller don’t just glance and sign. Reviewing the disclosures with your agent could arguably be the most critical aspect of the transaction. There’s a reason why the most real estate litigation occurs around disclosures.
6. Understand your market – Like any big purchase you need to do your research. Knowledge is power in real estate, and each local market can be very different. If you’re relocating in to a different market than have an understanding what your purchasing power is. Your dollar will go a lot further in purchasing a home in Fort Knox, Kentucky than in San Francisco, California.
7. Buyer Beware – If you have a concern than pursue it. You have every right to investigate all aspects of the property. It is ultimately your decision to make the purchase and it may be the biggest one you ever make, so if you’re in doubt than seek the right professional to answer you question.
8. Negotiate intelligently – When you understand your market it helps you significantly in the negotiation process. Ask your agent for comparable sales in the area so you have a reference point for what a good deal is. If you get 10 percent off a home that is 20 percent over priced it’s not a very good deal, but if you pay list on a home that is priced 10% under market value than you’ve done well.
9. Home inspection – Always get a home inspection by a reputable professional. No exceptions! It doesn’t matter if it’s a bank owned home, short sale, new construction or resale. Get a home inspection. Once you have had an inspection than evaluate whether you are willing to do the repairs, you want the seller to do the repairs or if it is beyond repair and you need to look for a new home.
10. Home Warranty – People tend to associate home warranties with new homes. You can get a home warranty for practically any home. They are well worth the small investment and you may be able to negotiate this item in your offer so you can have the seller to pay for it. There’s nothing like having peace of mind when you move into a new home.
Ultimately what is most important is that you have the right people looking out for you. Buying a home should be an enjoyable experience, and having the right professionals can take the stress out of what can be a very stressful process. Remember there is a reason why you are doing this and that’s to experience the pride and enjoyment of home ownership.
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