Kicking the Tires
House hunting can be both exciting and frustrating. Most home buyers see roughly 15 houses before buying one. To make the search easier and faster, nearly half of all house hunters today begin by browsing for properties on the Internet, using web sites like this one.
The internet is a quick way to see whether the houses that are currently available meet the following critical criteria: in the right location, with the right features and at the right price. If you find after your internet search that few properties meet with your expectations, you may want to readjust your criteria change the location, features, price to increase your chances of finding a house that works for you. If you have any difficulties in this initial search, feel free to contact me for assistance. Homes can become available instantly and your agent is always the most current resource for literally up to the minute new home listing information.
Once you know what you want, where you want it and what you can afford, its time to see the houses for yourself. To help stay focused, bring with you a checklist of things that you’ve decided ahead of time are important qualities of your future home.
This might include:
- Is there enough room for you to grow in?
- Is the house structurally sound?
- Is the house in move-in condition or will it need work?
- Is it close enough to everyday needs, such as grocery stores, schools, work?
- Will you feel safe here?
- Do the appliances that are part of the sale work?
- Is the yard right for your needs?
- Do you like the floor plan?
- Is there enough storage?
- Will you be happy in this house in winter, summer, spring, fall?
- You may also want to take some exterior and interior photos of each house you visit so that you can keep track of its pros and cons.
You certainly want to be happy with your new home but try not to get paralysis through analysis…
Hire a Pro
While you’re not required to use a real estate professional, it is a good idea.
A professional has access to a network of contacts and can draw from extensive market knowledge to help pinpoint the right house for you quickly.
A professional also can help you structure your deal to save money, explain the advantages and disadvantages of different types of mortgages and guide you through the paperwork.
And best of all, our professional services are at no cost to you!
Get a Loan
There are a variety of mortgage types available today, each with advantages and disadvantages depending on how long you plan to live in the home, the financial marketplace and your income potential, among other things.
A fixed-rate mortgage is the most common. In a fixed-rate mortgage, your interest rate and payment stay the same for the life of the loan. An adjustable-rate mortgage usually starts out at lower interest rates and lower monthly payments than fixed-rate mortgages, but your rate and monthly payments may rise and fall based on a financial index.
There are also several government mortgage programs available, including FHA mortgages, which are designed to help people who might not otherwise qualify for a loan.
You may also have a choice in loan terms. There are 30-year loans and 15-year loans.
Making an Offer
When you’ve found a house you really want, its time to make the offer. How much you offer may depend on a number of factors:
- Is the asking price fair? Here’s where the legwork you put in while shopping for a home pays off. Decide whether this house is priced right or out of line in the current marketplace.
- Is the house in good condition? Is this house in move-in condition or will it need a lot of work? Take any costs of improvement into consideration when deciding your offer price.
- Has it been on the market long? Usually the longer a house has been on the market, the more likely it is the owner would accept a lower offer. Or maybe its just overpriced for the market.
- Is it a sellers’ or buyers’ market? If the houses you’re interested in are being bought as soon as they’re listed, that means you’ve got a lot of competition from other buyers; offer accordingly. If houses aren’t selling fast, you may have more leverage in negotiating a lower price.
Once you’ve determined how much you’d like to offer, work with your real estate professional to submit the proper information. This includes:
- A complete, legal description of the house
- The amount of earnest money you’re paying
- The down payment and financing details A proposed move-in date
- The price you’re offering
- A proposed closing date
- The length of time your offer is valid
- Details of the deal
This can be just the beginning of the negotiation process. The seller has three options: accept your offer, counter your offer or reject your offer. Let your real estate professional advise you on the best way to present your offer for a good outcome.
When your offer has been accepted, the contingency period begins. This is time that allows you to obtain financing, perform inspections and satisfy any other contingencies of your purchase agreement.
Obtaining financing might include loan approval, which will include an appraisal of the property. Also be prepared to make your down payment, which is usually due several days before the close of escrow.
Now is the time to schedule a professional inspection of the property; it is one of the best safeguards you can take before buying. A home inspector should check (and may give you a rough price for repairs on) the electrical system, plumbing and waste disposal, the water heater, insulation and ventilation, water source and quality, pests, foundation, doors, windows, ceilings, walls, floors and roof.
Keep in mind that the inspector isn’t there to tell you whether you’re getting a good deal. He or she is there to give you an educated and professional opinion on whether the house is structurally and mechanically sound and fill you in on any repairs that are needed.
A paid homeowners insurance policy is required at closing.
Often a real estate professional will help make sure your insurance company and your title officer are working together to put your policy in effect by the close of escrow.
But, if you get your insurance agent involved early in your home-buying process, he or she may also help point out ways to help keep your insurance premiums lower.
Closing your Sale
When the property you’re buying has been inspected and you’ve had your final walk-through of the property to see that all contingency conditions such as final repairs made by the seller — have been met, its time to face the final paperwork.
You will be signing loan documents and closing papers, paying the balance of your down payment and closing costs.
This is the day you get the keys to your new home. Congratulations!