It may surprise you to learn that
Realtors, the professional ones at least, don't consider themselves the FIRST
step or contact in the home buying process. Below you will see a step by step
guide to the home buying process. The target audience for this blog is that
select group of people out there who really want to purchase a home and want to
do it the right way.
Step 1: Decide to Buy
The first step on this list may seem like a "no duh" type of statement, but the truth is that this is the most important step towards home ownership. Why? Because there are so many people who tell themselves they are "in the market" for a home but the truth is that they are not 100% committed to doing what it takes to become a home owner.
The first step on this list may seem like a "no duh" type of statement, but the truth is that this is the most important step towards home ownership. Why? Because there are so many people who tell themselves they are "in the market" for a home but the truth is that they are not 100% committed to doing what it takes to become a home owner.
People who are just looking don't
help the market. They hurt it because they take up valuable time and resources
away from the serious buyers. There are many ways to "just look"
constructively. Contacting a real estate professional (lender, Realtor or
attorney) is not the right way to go about it. There are so many websites
designed for the "just looking" crowd rather than the "I am
ready to buy" crowd. Take Zillow and Trulia for instance. These are
advertising sites, and while they are NOT the most accurate sites, they do give
the "just looking" crowd enough to do.
The real buyers make a real
commitment to buy, and make every step necessary to make it happen.
Keep the following points in mind:
- · The decision to purchase your first home is one of the biggest and best choices you could ever make.
- · Buying a home is the largest - and most emotional - investment most people will face in their lifetime.
- · There is never a wrong time to buy the right home.
- · A home purchase is an important step that can provide many advantages - equity build up, value appreciation, automatic savings plan - not to mention a new sense of pride!
- · Start looking at your options today. You don't have to know everything. As your real estate professional, it is my job to walk you through every step of the process.
Step 2: Hire a Realtor
When
you're looking for a real estate professional to help you, know that above all
else, good Realtors put their clients first. This is your dream, and your Realtor
is your advocate to help you make your dream come true.
The right real estate professional will:
- · Educate you about the current conditions of the market.
- · Take the time to analyze what you want and what you need in your next home.
- · Co-ordinate the work of other needed professionals (lender, attorney, inspector, etc.) throughout the process.
- · Guide you to homes that fit your criteria and budget.
- · Negotiate on your behalf to get you the best deal possible.
- · Check and double-check paperwork, legalities and deadlines.
- · Remain in contact with you, and suggest solutions to solve any problems that may arise.
Step 3: Secure Financing
To make
the financing process as painless as possible, ask your Realtor to introduce
you to the preferred financing consultant. This professional will work with you
and your Realtor to make sure the financial aspect of your home purchase is
stress free.
What will the consultant do for you?
- · Review your current financials.
- · Discuss the options available to you during the home purchasing process.
- · Guide you to an appropriate price point to meet your needs.
- · Negotiate on your behalf to get you the best deal - price, interest rates, loan approval.
- · Keep you updated of the entire financial process throughout your purchase.
Step 4: Find Your Home
So you've
met with your trusted advisor, and now you're ready to begin your search. But
how or where do you start? There are a lot of homes out there, and diving in
without a guide can become overwhelming and confusing. As your Realtor, I will help you more accurately pinpoint homes that fit your criteria. The right
home will meet all your important needs, and as many of your additional wants
as possible.
Some questions you might ask yourself include:
- · What amenities are crucial for you and your family?
- · How much space do you need and why?
- · Which is more critical: location or size?
- · Would you be interested in a fixer-upper?
- · How important is home value appreciation?
- · Is neighborhood stability a priority?
- · Is accessibility to main routes a priority?
- · What features are not negotiable in your new property?
*You'll
learn as you look at homes, your priorities will probably adjust along the way.
Step 5: Make an Offer
*This is
neither the time to be cheap nor to be foolish.* Once you've found a home you
love, the next step is deciding on a price. It's important to remember that a
home is an investment in your current living situation, and your future
financial situation. Your Realtor can give you information on the available
properties in the neighborhood to help ensure you make an informed decision
when it comes to price and options. Look to your Realtor to explain and guide
you through the offer process.
Some things to consider when deciding on the
best price point are:
- · List price - Start with the price point that the home is listed at. This will give you a base when looking at the home's value.
- · Market Analysis - Your Realtor will give you an idea of comparable home values in the neighborhood to help you decide if the price point is on par.
- · Improvements - Your Realtor can give you a list of improvements made to the home and help you determine its market value.
Step 6: Perform Due
Diligence
Ask your Realtor
to recommend a home inspector that knows the area in which you are purchasing.
The home inspector will provide you with improvements and challenges within
your home. This way you'll know what you are getting into before you complete
the purchase. Very often
a problem appears to be big, but can be fixed with very little effort and not a
huge budget. Don’t let anything discourage you. Information is a powerful ally
to have.
Step 7: Close
So now you
have an accepted offer, you’ve done the home inspection, you’ve signed your end
of the contract and the seller has signed his/her side of the contract. In
order to ensure that you don't put the property purchase at risk, you have a
couple responsibilities that you'll need to keep in mind:
- · Stay in control of your credit and finances - Do not make any large purchases during this time. Talk to your lender for guidance.
- · Keeping in touch with your Realtor, lender and attorney- It's important to stay in constant communication with your team during this process. Be sure to return all phone calls and complete paperwork promptly. Remember, your team is there to help you!
Step 8: Protect Your
Investment
Congratulations,
and welcome home! The home-buying process is complete, which means it's time
for your maintenance plan! It's now your responsibility, and in your best
financial interest, to protect your investment for years to come. Performing
routine maintenance on your home's systems is always more affordable than
having to fix big problems later. Be sure to watch for signs of leaks, damage
and wear. Also, make sure you aren’t cheap with your home insurance. This is
not a car where all you need is liability. This is a huge purchase. Protect it.
Your Realtor may be able to refer you to an excellent insurance broker.
Remember,
after you purchase your home, your Realtor can still help you - providing
information on the local contractors and repair services, and even tracking
your home's current value. Remember your Realtor when you are ready to sell and
move onto your next ownership.
Real Estate Salesperson
Coldwell Banker Kueber
917-945-4211 CELL
No comments:
Post a Comment