Are you looking to buy a home? The home buying process can be daunting but it does not have to be. Here are 5 easy steps to help you find your dream home.
1) Get pre-approved
Figure out what you can afford to buy. Either use a service online or sit down with a mortgage broker/lender or banker to figure out what is in you comfort zone. We all want to buy a home more than we can afford. Establish what you can afford and then get pre-approved for a mortgage. Your negotiating power increases when the seller knows that you are are for real and can get money.
2) Make a list of your needs and wants
You probably won’t get everything you want. Generally, everyone has to make compromises, regardless of their price range. People always seem to want more than they can have. Getting your needs filled is the most important thing in a home. Figure out what you want.
3) Hire a good Realtor
Don’t hire your cousin or other family member who happened to get their real estate license but failed out of the real estate business. This is a big investment. Hire a professional who knows the market well. A knowledgeable Realtor can save you several headaches and tons of time. Explain your needs and wants in a home with your Realtor. They will also need to know your budget.
4) Be realistic
Hopefully through your internet searches and consultation with a Realtor you are more knowledgeable about the real estate market. Right now it is a buyers market however the number of homes that meet your needs and wants may not be that great. Inventories are dwindling in several areas of the country. Good properties with the right asking price see plenty of action. The media sensationalizes the news to sell more newspapers and advertising. A good Realtor can explain the true facts of the real estate market. Be realistic about the real estate market and what homes cost.
5) Make an offer
If you have done your homework, been pre-approved and hired a good Realtor it is time to go look at property. Make a list of the best areas and look at homes/condos in those locations. If nothing is good wait for new listings to come on the market. When the right property is found make an offer. There is no such thing as a perfect house. Again, compromises have to be made.
Good luck.
Marc Rasmussen
{ 3 comments… read them below or add one }
Great post! I can never stress enough to buyers how important it is for them to do their homework before hand. Just as we have homework to do once they come to us, they also have homework to do that will save loads of time.
An excellent article. For those that can afford it the real estate market currently favors the buyer, but you have to feel a little sorry for those who bought property two to three years ago, who have lost on average around 20 to 30 per cent value on their investment if sold today.
Great post. Buyers need to know the market they are shopping in. Not all markets mirror Atlanta, Las Vegas, San Diego and other markets inundated with high dollar foreclosures and/or short sales. While it is a buyers market, not all sellers are desperate. Be reasonable in your expectations!!