Buying a Home
Golden Properties Real Estate 101
Whether you've spent years saving and preparing to buy a home, or are unsure if you can afford it, the questions surrounding a house purchase can be difficult to deal with.
Here are some tips to help you in the home buying process.
- Hire a real estate professional.
The first step is to select a full time professional who can readily demonstrate to you that they have the experience and necessary knowledge for your local real estate market. They should have a proven record attesting to their productivity and level of client satisfaction. Working with a buyer agent is worth consideration since he or she is legally responsible for representing your interests in the real estate transaction. Always remember the seller or builders agent works for their client in the transaction. You should discuss this in detail with your Realtor so they can explain the concept of buyer agency vs. sales or dual agency.
- Shop for mortgage rates and terms.
A difference of even half a percentage point can mean a huge savings over the life of a loan. For example, the difference in the monthly payment on a $100,000 mortgage at 8 percent vs. 7.5 percent is about $35 per month. Over 30 years, that's $12,600. You may wish to discuss this with your Realtor so they can provide you with a list of some qualified lenders depending on your needs.
- Pre qualify for a loan.
Your third step should be to get pre qualified, which determines how much you can afford. It allows you to move swiftly when you find the right home, especially when there are other interested buyers. It also indicates to the seller that you are serious and really can afford to buy the property.
- Define what you want.
The next step is to create a realistic idea of the property you'd like to buy. What features are most important to you? Make two lists: one of the items you can't live without and one of the features you would enjoy. Refine the lists as you house hunt. It is also helpful to search online to see what is currently available on the market. Your real estate professional can then show you houses that meet your expectations.
- Visit properties.
Now you're ready to visit houses. Ask your Realtor to arrange showings, and keep track of the properties you've seen. Your Realtor should be open and honest in reviewing each home to point out both the positive and negative features. Be wary of a Realtor who tend to like every home you have visited.
- Know the features that help or hurt resale.
In some areas, a swimming pool actually detracts from a home's value and makes it harder to sell. In neighborhoods with two-car, attached garages, a single-car or detached garage may impact the home sale and future value. As a professional your Realtor can point out features that hurt or help resale value.
- Rate the houses you tour.
After touring each home, write down what you liked and didn't like. Develop a rating system that will help narrow the field down. For example, pick the house you like best on day one and compare all other houses to it. When you find a better one, use the new favorite as the standard.
- Make an offer.
Once you've located your dream house, it's time to get serious about the financial and contractual side of the purchase. Your Realtor (buyers agent) must be on top of their game in reviewing what other homes in the area have sold for, what features they offered vs. what the one you will be making an offer on have. Once you and your Realtor have decided on an offer price your representative will be responsible for dealing with any counter offers and other specifics related to reaching an agreement. Having a professional buyers agent who knows the market representing you is the biggest advantage you will have in reaching an agreement with the seller and their agent.
- Arrange for a home inspection.
After your offer is accepted, set up a home inspection. It's common to find some problems even in new construction. Your real estate professional can help find a reputable inspector, and will negotiate to get you the most for your money once the inspector's report is final. If you negotiate repairs as part of the purchase, ask for a "walk through" before finalizing the paperwork. Ask your real estate expert about home protection plans, which may save you money in the near future.
- Close.
Before your closing date, make sure you've made all necessary deposits and completed the paperwork - including mortgage, title, homeowners insurance and any other paperwork required by local or state governments. Again, rely on your Realtor to assist you with any questions you may have since they have much more experience with closings then an individual buyer.
- Prepare for life in your new home.
Before rolling out the welcome mat, consider some moving basics: arranging for an alarm company, turning on electricity, water and gas, cleaning or replacing the carpet, and notifying your local post office of your new address. The best time for renovations is often before you move in. Again, your Realtor should be a resource in helping you through this process with recommendations and advice.
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