Karen King Group's Blog
For first-time homebuyers, going from property buyer to property owner may seem virtually impossible. Lucky for you, we're here to help you take the guesswork out of buying a home.
Now, let's take a look at three questions that every first-time homebuyer needs to consider:
1. What is my "dream" residence?
One first-time homebuyer's definition of a "dream" residence may differ from another's. As such, you should consider what you'd like to find in a dream house before you begin your real estate search.
Creating a checklist of "must-haves" and "wants" in your house often serves as a great starting point for first-time homebuyers. This checklist will enable homebuyers to consider what they'd like to find in a dream home and plan accordingly.
Also, it is important to establish realistic expectations before you kick off a home search.
Many terrific houses are available in cities and towns nationwide, but no home is likely to have every feature that you desire in a dream residence.
Therefore, if you establish realistic expectations for your home search, you can avoid potential let-downs as you explore a broad array of high-quality houses.
2. How will I pay for a home?
Getting pre-approved for a mortgage is vital for a first-time homebuyer, and for good reason. With pre-approval for a mortgage, you'll know what you can afford to spend on a home before you enter the real estate market.
Many banks and credit unions are happy to meet with you to discuss your mortgage options. These lenders can outline the differences between adjustable- and fixed-rate mortgages, help you assess your credit score and ensure you can make an informed mortgage decision.
Furthermore, lenders can answer any mortgage questions that you may have. They can help you evaluate your current financial situation and enable you to obtain a mortgage that won't force you to revamp your day-to-day budget.
3. How do I begin searching for a house?
Beginning a home search is easy, particularly for first-time homebuyers who work with expert real estate agents.
An expert real estate agent understands what it takes to find a wonderful house at a budget-friendly price. In fact, he or she will do everything possible to help you navigate the housing market quickly and effortlessly.
Typically, an expert real estate agent will keep you up to date about new homes as they become available, set up home showings and submit home offers on your behalf. This housing market professional also will offer honest, unbiased recommendations throughout the homebuying journey to help you select a house that matches or exceeds your expectations.
When it comes to exploring the housing market, there is no need to work alone. Fortunately, you can hire an expert real estate agent who can help you get the best results possible during the homebuying journey.
Want to acquire your first home? Use the aforementioned tips, and you can move one step closer to owning a top-notch house.
Purchasing a home may prove to be a long, arduous process, particularly for individuals who fail to prepare for potential house buying hurdles. Thankfully, there are several things that you can do to put yourself in position to enjoy a successful homebuying journey, such as:
1. Establish Realistic Expectations
Much in the same way that Rome was not built in a day, you should not expect to find and acquire your dream house right away. If you establish realistic expectations from day one of the homebuying journey, you can identify and resolve potential problems before they escalate.
Think about why you want to buy a home, where you want to reside and other homebuying factors. Then, you can make a list of homebuying goals and criteria. And once you have this list in hand, you can map out your quest to achieve your desired house buying results.
2. Get Your Home Financing in Order
If you find a home you want to buy but cannot quickly obtain financing for this residence, you may lose the house to a rival buyer. On the other hand, if you start a home search with a mortgage in hand, you could seamlessly navigate the homebuying journey.
To get pre-approved for a mortgage, you should meet with a variety of banks and credit unions. These financial institutions employ mortgage specialists who can teach you about all of your home financing options. Next, you can select a mortgage that enables you to acquire your dream residence without spending beyond your means.
3. Hire a Real Estate Agent
Oftentimes, it helps to hire a real estate agent prior to launching a home search. Because if you work with an expert real estate agent, you can gain comprehensive homebuying insights that you may struggle to obtain elsewhere.
A real estate agent understands what it takes to purchase a house in any housing market, at any time. First, he or she will learn about you and your homebuying expectations. A real estate agent then will craft a plan designed to help you identify your ideal residence. This housing market professional next will put this plan into action and ensure you can check out a broad array of quality residences. Finally, when you discover your dream house, a real estate agent will help you submit a competitive offer to acquire this home.
Let's not forget about the assistance that a real estate agent provides after a seller accepts your offer to purchase his or her home, too. At this point, a real estate agent will help you schedule a home inspection and finalize your house purchase. And if you ever have concerns or questions before you complete your home purchase, a real estate agent is happy to respond to them.
There is no telling what challenges you may encounter when you try to buy a house. With the aforementioned tips, you can minimize risk during the homebuying journey. Perhaps best of all, these tips could help you speed up your quest to find and purchase your dream home.
Believe it or not, an inspection may make or break a home purchase. And if a homebuyer fails to allocate time and resources to perform a comprehensive inspection, the consequences could be severe.
Ultimately, there are many reasons to conduct an extensive inspection before you finalize a home purchase, and these include:
1. You can identify any underlying structural problems with a house.
A home inspection provides a valuable learning opportunity for a homebuyer. In fact, an inspection can help you identify any underlying structural problems with a house before you complete your purchase.
During a home inspection, a property expert will examine a residence both inside and out. When the property expert has completed his or her inspection, this professional will provide you with an inspection report.
As a homebuyer, it is important to review all inspection report results closely. With these home insights, you can decide whether to proceed with a house purchase or reenter the real estate market.
2. You can assess the costs associated with various home repairs.
A comprehensive home inspection enables you to learn about a wide range of home problems. After you receive a home inspection report, you can analyze the costs associated with various home repairs as well.
If you find that home repair costs could be substantial, you may want to ask a seller to complete assorted home improvements. Or, you can always request a reduced price for a home due to its condition.
Furthermore, if you are overwhelmed by potential home repairs, it is important to remember that you can still walk away from a home purchase. And at this point, you can restart your home search from square one.
3. You can determine whether a home is a viable long-term investment.
A home generally is a long-term investment, and as such, you should strive to optimize the value of your house purchase. Thanks to a comprehensive home inspection, you'll be in a great position to do just that.
With an in-depth home inspection, you can identify a house's strengths and weaknesses. And if you feel comfortable with a house after an inspection, you can finalize your home purchase and reap the benefits of a successful investment.
When it comes to conducting a home inspection, it helps to collaborate with a real estate agent. This housing market professional can put you in touch with the top local home inspectors to ensure you can receive expert support as you evaluate a residence.
Let's not forget about the assistance that a real estate agent can provide throughout the homebuying journey, either. A real estate agent can set up home showings, help you submit offers on houses and much more. As a result, a real estate agent will make it easy for you to enjoy a successful homebuying experience.
Ready to pursue your dream house? Consult with a real estate agent, and you can receive plenty of support as you proceed along the homebuying journey.
House shopping when you live far from your new community is not easy, but technology makes it much simpler to tackle this big task. While nothing beats in-person visits, if you live across the country, or even in an international destination, you may not have that option. Here’s a look at how you can make a long-distance house shopping experience work.
Find the Right Agent
You’re going to need a tech-savvy agent who is willing to be in constant communication. The agent is going to need to use technology to help you see houses, be able to get documents back and forth successfully and know how to move quickly when you’re ready to make the purchase.
Start your search online to narrow down what it is you do and don’t want. Different areas of the country have different types of homes, so you may find the basement you’re hoping for just isn’t standard for homes in your new community. Once you have narrowed down what you’re looking for, use the Internet to learn more about the communities.
Yes, you can have showings long-distance. Using real-time video tools like FaceTime or Skype, your agent can walk you through the home. This is why the agent you choose is so critical, because you’re going to need this type of partnership to find the right home. These real-time video tours will allow you to see the home's condition. The right agent will do a thorough search of the property and tell you about potential problems they may find.
Research Neighborhoods Carefully
One thing your agent won’t be able to do is give you specific details about neighborhoods, other than facts like its schools and commute times. Research neighborhoods carefully online to learn all you can about them, and find one that seems like a good fit for your needs. If you can, make a survey trip to your new community to narrow down the neighborhoods with the right vibe for you.
Never Skip the Inspection
When you’re buying a home long distance, you’ll need that inspection, even if it isn’t required. The inspection gives you details about the home that will be critical to your decision-making process.
Buying a home when you don’t live near the community is much easier today than it ever has been due to the increased amount of technology available to modern home buyers. Use this technology well, and soon you’ll find a home that’s a great fit.
The decision to buy a home can bring all sorts of emotions. From stress to joy to fear, you need to be prepared for any situation to arise. From saving up enough money for a down payment to securing financing to hoping for a smooth closing, buying a home is a complex event. Just about the worst thing that can happen in the process is finding the home of your dreams and then having your offer rejected. If you do lose out on the house to another bidder, below, you’ll find a few reasons why.
The Home Is Above Your Means
If you go after a home that’s above a price that you can afford, it’s likely that your offer will be declined. Look at all of your numbers and find a reasonable price point with your real estate agent. Be sure that your agent won’t show you homes that are far above your budget. Don’t risk falling in love with a house that you can’t afford. If you start big, you may be disappointed at the type of home you actually can fit in with your budget.
A Better Offer Came In
In high competition markets or for a home that’s receiving a lot of attention, sellers may get multiple offers. All that attention is why it’s always best to keep your offer as close to the asking price as possible. Don’t assume that other buyers will bid low. Remember that sellers want to get the most return on their home, which means they are going to take the highest offer in most cases.
You also don’t want to get too carried away in asking for contingencies. If you ask too much of a seller’s, they won’t bother giving your offer serious consideration when other buyers have asked them to put less time and money into the home. Don’t ask for unnecessary repairs or over the top back costs.
You’re Not Approved For A Mortgage
The seller wants you to have a home loan pre-approved so that the process of selling their home will be that much smoother. Some seller may only consider bids by buyers who have been pre-approved for a loan. You should definitely be pre-approved before you even set out on your home search.
To get your offer accepted on a home you love, you need to do your homework. As a buyer, you want to keep the needs of the seller in mind. Although you want the best deal for yourself, you're more likely to get a property that you want if you compromise a bit.