Home Buyers Tips

A Step By Step Look at Home Buying

Some real estate laws and customs differ depending on where you live, but there are many home buying steps that are standard, even though they might not be accomplished in the same order in every location. Here are the 11 steps to buying a home:

Step 1 - Get Your Credit/Finances in Order

Your credit reports is a primary factor in determining what interest rate you will receive and how much the banks are willing to loan you toward the purchase of the property, so make sure you check it and ensure there are no issues before starting the property search process Know your financial history before you apply for a mortgage, as errors on credit reports are common and often require a lot of time to clear up.

Step 2 - Get Familiar with the Mortgage Industry

Have at least a bit of background about the loan process before you talk to a lender (if you do not already have it, find some one who does or consult with your realtor who can assist you in the process). Find a ender that you are comfortable with and that fits your needs.

Step 3 - Get Pre-Approved for a Mortgage

Once your credit/finances are in check, apply for a pre-approved mortgage to establish how much house you can afford? It also helps if you are involved in a bidding war for a property, the potential buyer that has already been pre-approved will get preferential treatment from the seller.

Step 4 - Determine Your Wants and Needs

Grab a piece of paper and divide it into three columns. If you'll have a co-owner, have that person make a list too, but don't share ideas just yet.

Column 1 - List Must-Have Features:

  • If the house must be located in a specific neighborhood or school district.
  • If the house must have 3 bedrooms, a 2 car garage, a large kitchen, a view.
  • If there must be no restrictions against a home-based business.
  • If the home must be one level, with few or no steps.
  • List every feature you feel is a must.

Column 2 - List Features You Would Like:

  • A basement or a deck.
  • Whirlpool tubs, walk-in closets.
  • A certain type of architecture.
  • Gas heat.
  • Central air conditioning.
  • List all features that are important to you--but that you might be flexible about.

Column 3, List Features You Do NOT Want:

  • A home located next to a highway or in a congested area.
  • Certain types of architecture.
  • Homes that need a great deal of work.
  • List all features you absolutely cannot accept.

Review your list. If your co-owner made a list, compare them to see if your priorities match. If they don't, you'll need to compromise, revising your lists so that both of you are happy.

Making a list is a good exercise because it forces you to think about your wants and needs, but I can almost guarantee you that the list will change and evolve when you actually begin to look at houses. Even home buyers with an unlimited budget rarely find the "perfect" home.

Step 5 - Select a Qualified Real Estate Agents

Basically, there are many agents, all adhere to the professional standards or code of ethics established by the National Association of Realtors, but here are some reasons of what you should look for in an agent and why you should do business with me

  • Find an agent that you feel comfortable with in their personality, professionalism and ability to serve or assist you in your home buying/selling process – like me!
  • Find an agent who has a good website that provides you with ample educational resources, information about the area, offers me services and has a good MLS search and information on listings I am interested in
  • Find an agent who will offer you prompt professional service
  • Find an agent who is knowledgeable and will help guide you through the real estate process
  • Ask me for referrals. Don’t do business with me because I have a nice website, let my previous customers tell you how I serviced them
  • Make an appointment and interview me, ask me about my marketing tactics, placement in MLS, services offered, commission rate, etc.
  • Get a feel for my knowledge and experience of the industry and the area and more

Step 6 - Start Searching for a Home

As a Realtor, I have many tools at my disposal to help you through the process. I can help you by searching the multiple listing service (MLS) system to find listing that match your desired criteria, providing you with Comparative Market Analysis (CMA) reports, lend my knowledge of the area, school systems and more.

You can also pick up House For Sale magazines and read classified ads in your local newspapers, surf the Internet for homes, we plan afternoon drives to preview neighborhoods.

Hint: You can use my website to search and find and then I can show you any property in the area!

Start looking for two types of real estate:

  1. Houses that seem to match the one you'd like to buy
  2. Houses that are similar to your current home.

Step 7 - Handle Pre-Offer Tasks

Deciding whether or not you want to buy a house involves a look at its structure and its features, but there are many other topics that are every bit as important to your purchase.

Step 8 - Make an Offer

Here are some tips that can help you get the best deal when it’s time to make an offer on a home. No matter what your strategy is, you should have a very good idea of the home's market value before you make an offer.

  • Lowballing it: Be realistic, some seller's take a lowball offer as a personal insult and may not be as anxious to deal with you on your next offer. That's fine if low is all you'll go, or if the property is truly overpriced, but it can create problems with future negotiations.
  • Being generous: Come in too high and you may not find the seller's low point.
  • Helpful Advice from your Agent: One area I can help you is to provide you with enough information and advice to assist you in determining the best price to offer. I can run comparables for you, and will be involved in offer strategies.
  • Finding Sales Information – Courthouse/Local Tax Collector Website: Ask the staff to explain how to decipher deeds or other records that indicate sales prices, find out the selling history of properties in the area and often get sketches and facts about a home's structural components.
  • Asking prices: Advertising gives you a feel for average asking prices, but your focus should be on sales prices. You'll find them recorded as explained above or on multiple listing recaps of sold properties.
  • Should
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