Know what you are shopping for before you start

Before you begin shopping for a home, you must understand that there are two homes vying for your interests, the one that meets your needs, and the one that fulfills your desires. In a perfect world, you would find a home that satisfies both. But knowing this is not a perfect world, you must be prepared to find yourself confronted with choices. Also, when you start shopping, you’re going to find homes you fall in love with for different reasons. For this reason, you should list the features you want before you start looking. Break your list into two categories, “Needs”, and “Desires”, and prioritize the items you put into each category. This will help you keep your priorities straight as you shop around.

Don’t let emotion cloud your judgment. Satisfy your needs first; if you find a home that meets your needs and fulfills some of your desires, so much better. The important thing is to know the differences before you get caught up in the excitement of the hunt. Get pre-approved for financing before you shop for a home.

Getting a loan pre-approval is very smart way to start the home-buying process. There are numerous advantages to this, all of which will benefit you as the process unfolds. First, it tells sellers you are a serious prospect. This can be very important when you find your paradise dream home the same time as another buyer. For some sellers, a contract contingent upon the buyer obtaining financing may make them uncomfortable. Being pre-approved will eliminate this from happening. Also, make sure you get a commitment in writing.

Hire the right agent!

A good agent is an invaluable tool to assist you in the home buying process. A good agent has the knowledge, experience, and dedication that come from years of helping both buyers and sellers. He or she should also have a team of other professionals to put at your disposal, including lenders, home inspectors, contractors, etc.

Hire a Realtor®. The term Realtor® is a registered collective membership mark that identifies a real estate professional who is a member of the National Association of Realtors® and subscribes to its strict Code of Ethics, which in many cases goes beyond state requirements). In most areas, it is the Realtor® who shares information on the homes they market through a Multiple Listing Service. Make sure your Realtor® knows exactly what you are looking for. Once you have a clear and precise idea of the home you are looking for and your priorities, make sure your Realtor® has this knowledge. If not, you both will waste your time looking at homes you really are not interested in. Your shared goal is to find a home that satisfies as many of your needs and desires as possible.

A good Realtor® is also your link to important information regarding neighborhood trends, schools, city and county codes and regulations, and property values.

Location, Location, Location.

Although this cliché is overused, it is very, very important. The desirability and resale value of your property depend on location more than any other single factor. If there is something about the location of a property that bothers you, it is safe to assume when you try to attract buyers for the property at a later time, the same characteristic about the property will bother your potential buyers. Pay attention to the size and value of the home in relation to other properties in the same neighborhood. Homes within a neighborhood escalate in value when the homes around it go up. If your home is the highest standard by which all homes are measured by, your value will increase much less than others. Conversely, the smallest home in the neighborhood tends to be “pulled up” by the other homes on the block. However, it might take longer to sell a smaller home because people are unwilling to pay extra for the neighborhood.

Many things can have a negative affect on property values in a given neighborhood. Traffic, sounds, smells, and general property maintenance can all have this affect on values. Be sure to take a long hard look at the neighborhood. If the home you’re interested in is within a neighborhood with problems, your investment won’t be worth as much when the time comes to sell.

Show a little interest in everything you see

As you tour homes, find something to admire in many or all of the properties. If you don’t show any interest until you have found the one of your dreams, you’ve put yourself at a competitive disadvantage. Never let anyone know how badly you want a home or property. It will cost you money in the end.

Ask for a written comparative analysis

One way to ensure that you don’t offer too much for a property is to ask your Realtor® to prepare a written comparative market , analysis, or CMA. A CMA will show you the recent sales prices of comparable homes in the same neighborhood. It will also show you the asking prices of currently available homes in the neighborhood. When you make an offer, you can use the CMA as evidence to show the seller why you think you believe your offer is a reasonable one.

Hire a professional home inspector

Obtaining a professional inspection report is the best investment you’ll ever make. It can protect you from many defects that are hidden from view. A professional inspector brings experience in examining a great many homes and an unbiased perspective. Why gamble with such a large financial investment. The written report can also be an excellent negotiating tool as well. Even if you are buying a property “as is”, it is in your best interests to obtain an inspection. Also, so not rely on a building inspector to look for wood destroying organisms, termites, or other pests. It is best to have a separate termite and pest inspection performed by a professional, licensed company that understands and can eliminate such pests.

Learn and Know all the costs associated with your purchase

There is more to buying a home than a mortgage. Don’t forget to factor in mortgage insurance, appraisal fees, inspection fees, transfer taxes, property taxes, title insurance, and every other dollar you will have to spend in order to complete this transaction. Ask your Realtor® to go over these costs and explain any you do not understand.

If you have any questions about these tips, or any questions about real estate in general, please contact me, Rob Pailes, at (239) 691-2265.