Buying a home can be both an exhilarating and intimidating experience. We created this handy list of Top 10 Tips for Home Buyers to help you get the house you want – for the price you need.
1. Create a list of ordered priorities
First, decide whether you are you looking for a single-family home versus a condo or townhouse, both of which have pros and cons our agents will be happy to discuss with you.Then, get more detailed about the features that matter most to you. Here are some examples:
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- Number of bedrooms and bathrooms
- Importance of a high-quality school system (smart to consider regardless of whether you have children, as it can greatly affect home values)
- Location in proximity to your work, major highways and/or airports or other relevant factors
- Whether you need room to grow your family and if so, how much
- Size of the property if relevant
- Smaller elements that matter to you; such as granite countertops, wood floors, or a walk-in closet
Once you have completed your list, decide which features are deal breakers and which ones you’re willing to compromise on. Then make sure to communicate your needs and desires to your real estate agent in order to streamline the search for your ideal home.
2. Know what you can afford
Factors will include income, debts and down payment. Many banks will require that your monthly costs not exceed a certain percentage of your income. Use this handy home-buyer calculator from Realtor.com to determine what you can afford.
3. Don’t focus on “timing the market”
It’s true that the real estate market fluctuates between buyer’s markets, sellers’ markets and neutral markets – and it can be helpful to keep the status of your buying area in mind. However, even experts agree that it’s an imperfect science that even billionaire investors cannot determine with great accuracy.
4. Pre-qualify for a mortgage
Securing a promise of a mortgage from a lender is a crucial step, as it allows you to move faster on securing the home you want, gives you a higher likelihood of prevailing over competing offers, and eliminates the risk of financial rejection. Get to work securing pre-qualification as soon as you begin your housing search.
5. Explore down payment options
The standard down payment is 20% of the cost of your new home but some lenders will require less, especially for first-time home buyers. Keep in mind that a smaller down payment will likely mean that you need to purchase mortgage insurance. Also, your application will receive greater scrutiny. Play around with this down payment calculator to help make this determination.
6. Choose an agent that’s right for you
Your real estate agent should know the area well and understand your needs and desires. Choose someone with whom you feel comfortable and confident. All Newtown Realty agents are in the business because we have a passion for matching people with the right homes for their tastes and needs. Each agent also lives in the area and has a strong knowledge of Newtown and the surrounding towns we represent.
7. “Test drive” the neighborhood
Before you purchase a home to live in, it’s a good idea to get to know the area. Pop in at different days and times to learn about your neighbors, assess noise and traffic levels, and learn about proximity to necessary stores and services. You might also want to test out your commute to and from work.
8. Play it cool
Always go through your agent when communicating with home sellers or listing agents, including when attending an open house. It’s important not to give away information about how eager you are to buy, or what you’re willing to pay.
9. Get a top-quality inspection
Once you have your home picked out, the home inspection is a crucial step. Choose a home inspector carefully based on recent reviews and recommendations, and make sure they test for a range of items; including pests, mold and radon. Be sure to attend the inspection to see that it’s completed thoroughly and to learn about the home’s assets and drawbacks.
10. Budget for “sleeper costs”
Don’t forget to consider both the one-time and repeat costs that come with owning a home. These can include: taxes, utilities, repairs and crucial upgrades, homeowner association dues, and potential property tax increases.
Follow these important steps and you’ll be on your way to finding and purchasing the home that’s just right for you.
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