If you are a first-time home buyer, you may not be familiar with the process you must go through. But that doesn’t mean you ought to remain ignorant. Take into account the following five steps and you can never go wrong:
Hiring an Agent
The first thing you should do when buying a home is hiring an agent. That’s if you have no time to sift through online open houses in search of your perfect home. An agent can send you the listings that are currently available on the market. If anything, they know all the new listings that are coming up on the market. Apart from previewing houses for you, agents also have the ability to spot overpriced houses and warning you about them.
Finding a Home to Buy
Finding the right home can be an emotionally draining and overwhelming process. It is not easy either. As a buyer, you may need to handle up to seven homes at a time to avoid being overwhelmed with choosing the right home. The mistake that most buyers make is searching for homes online without physically visiting the property. The National Association of Realtors estimates that buyers take between 6 and 8 weeks to decide where they want to live. Having settled on the neighborhood, a buyer will close the deal after 2 to 3 home tours.
Getting a Loan
Before you start looking for a suitable home to buy, make sure you have a mortgage pre-approval. Most sellers want to have an assurance that you are actually going to get a mortgage to pay for the property. Making an offer isn’t enough. You might want to go for an FHA loan where you will be required to pay less in terms of the minimum down payment. Use your agent as a reference to a good mortgage broker. My another informative article Real Estate Trends 2018
Negotiating the Offer
Don’t make the mistake of comparing prices between different homes you’ve just viewed. After all, buyers are free to decide the price they want. However, it doesn’t mean that they will actually sell at that price. Work with an agent to go through comparable sales, which are homes in the same location and condition sold within less than three months. Where you have a number of buyers trying to buy the same house, you might just be forced to pay the list price. Get a reasonable price range from your agent even as you manage your expectations.
The timing of a home inspection will depend on where you live. In a number of states, you may have to do the inspection before making an offer. Where you do the inspection after, you have the right to revoke the contract if the home doesn’t meet your expectations. Where you find problems with the home, the seller is not obliged to make any repairs. After all, the inspection is for the buyer to feel they are getting a great deal. However, the seller may agree to do repairs if they feel the deal will implode.
Are you ready to buy your first home? Go ahead and do it.