Knowing the ground rules for home buying success will help you alleviate some of the financial and psychological stresses many homebuyers face. Whether you are buying your first home, moving up to your dream home, or downsizing your home and your life after the kids have gone, it is essential to understand the ground rules for success in the world of buying a home.
Making the wrong decision in buying a home can have devastating and long-lasting effects. On the other hand, making a wise decision in home buying can greatly enhance the overall value of the investment. Therefore, it is necessary to learn all you can about the world of home buying and mortgages before setting out to purchase the home of your dreams.
An experienced, professional real estate agent can help educate you on the decisions that you will face. This one-on-one counseling is so valuable. Work with an agent who knows the area well, understands the local real estate market, and has excellent resources and partners to help you through the process.
When buying a home, it is often best to use a systematic approach as this is often the best way to ensure that all decisions are based on information and reason, not on impulse or emotion. Buying a home can be an emotional process. Nevertheless, it is imperative to keep your emotions under control and not let them cloud your judgment.
There are five basic ground rules when it comes to buying a home and shopping smart, and they are:
Work with a lender before looking at houses.
There are few things in life as disappointing as losing out on the home of your dreams due to not securing funding. While the desire to get out there to search for that great home is understandable, it is vital to line up the financing you will need before you start shopping for a home.
Getting the financing ahead of time has several significant advantages, including knowing the proper price range to search for your dream home. Knowing how much home you can afford before you shop will avoid wasting your time looking at unaffordable properties.
It is also essential to look at the various types of mortgages on the market before getting started in the home buying process. These days, there are many different mortgage programs. For that reason, potential home buyers need to understand how each type of mortgage works and gauge which mortgage is the best choice for their needs.
Look at the community, not just the home.
It is wise to look at the entire community instead of focusing on a single home. This can be a crucial thing to consider for those moving to a new metropolitan area. As a newcomer to the local climate and lifestyle, you may not be familiar with the geographic subtleties of the area. Therefore, it is vital to determine the areas of town that are most desirable and to consider things like distance from work and local shopping opportunities.
We have all heard that location is the number one consideration for real estate, which is undoubtedly the case. Buying a house in the wrong area can be a big mistake, and it is important to choose the location and the home. Potential buyers can learn a great deal about the nature of the various neighborhoods simply by driving around town and talking to other residents.
Be fair with your offer.
Trying to lowball a seller on the first offer can backfire. Instead, it is essential to carefully evaluate the local market and compare the home’s asking price with what similar houses in the neighborhood have sold.
Comparing the sales of comparable homes, known as “comps” in the industry, is one of the best ways to determine what is fair and make sure that you neither overpay nor underbid on the property.
Your real estate professional can research and help you evaluate your best offer strategy.
Don’t waive the home inspection.
Always investigate the home for any possible defects during your due diligence period. Compared to the cost of the average home, the price of a quality home inspection is virtually negligible. Hence, get a good home inspection done before you buy.
Not only will a good inspector tell you about any defects they find, but they will also let you know when components of the home are nearing the end of their life expectancy, along with tips for maintaining your home.
Do not alienate the sellers of the home.
It is important to avoid alienating the seller of the home during the buying process by nitpicking unimportant issues. Be sure to address any safety issues or large ticket items, but not small, unimportant ones.
Keeping the seller’s goodwill will help the transaction go smoothly, and it will provide the best environment for the seller and buyer alike.
When you consider buying a home, contact The SAYHAY Team. We offer a free buyer consultation and walk you through each step of the process. Please contact us at 412-755-3600.