Buying Process
Take the Stress Out of Homebuying
Buying a home should be fun, not stressful. As you look for your dream
home, keep in mind these tips for making the process as peaceful as
possible.
1. Find a real estate agent who you connect with. Home buying is not
only a big financial commitment, but also an emotional one. It’s
critical that the REALTOR® you chose is both highly skilled and a good
fit with your personality.
2. Remember, there’s no “right” time to buy, just as there’s no perfect
time to sell. If you find a home now, don’t try to second-guess
interest rates or the housing market by waiting longer — you risk
losing out on the home of your dreams. The housing market usually
doesn’t change fast enough to make that much difference in price, and a
good home won’t stay on the market long.
3. Don’t ask for too many opinions. It’s natural to want reassurance
for such a big decision, but too many ideas from too many people will
make it much harder to make a decision. Focus on the wants and needs of
your immediate family — the people who will be living in the home.
4. Accept that no house is ever perfect. If it’s in the right location,
the yard may be a bit smaller than you had hoped. The kitchen may be
perfect, but the roof needs repair. Make a list of your top priorities
and focus in on things that are most important to you. Let the minor
ones go.
5. Don’t try to be a killer negotiator. Negotiation is definitely a
part of the real estate process, but trying to “win” by getting an
extra-low price or by refusing to budge on your offer may cost you the
home you love. Negotiation is give and take.
6. Remember your home doesn’t exist in a vacuum. Don’t get so caught up
in the physical aspects of the house itself — room size, kitchen, etc.
— that you forget about important issues as noise level, location to
amenities, and other aspects that also have a big impact on your
quality of life.
7. Plan ahead. Don’t wait until you’ve found a home and made an offer
to get approved for a mortgage, investigate home insurance, and
consider a schedule for moving. Presenting an offer contingent on a lot
of unresolved issues will make your bid much less attractive to
sellers.
8. Factor in maintenance and repair costs in your post-home buying
budget. Even if you buy a new home, there will be costs. Don’t leave
yourself short and let your home deteriorate.
9. Accept that a little buyer’s remorse is inevitable and will probably
pass. Buying a home, especially for the first time, is a big financial
commitment. But it also yields big benefits. Don’t lose sight of why
you wanted to buy a home and what made you fall in love with the
property you purchased.
10. Choose a home first because you love it; then think about
appreciation. While U.S. homes have appreciated an average of 5.4
percent annually over from 1998 to 2002, a home’s most important role
is to serve as a comfortable, safe place to live.
Tips for Buying in a Tight Market
Increase your chances of getting your dream house in a competitive
housing market, and lower your chances of losing out to another buyer.
1. Get prequalified for a mortgage. You’ll be able to make a firm
commitment to buy and your offer will be more desirable to the seller.
2. Stay in close contact with your real estate agent to find out about
the newest listings. Be ready to see a house as soon as it goes on the
market — if it’s a great home, it will go fast.
3. Scout out new listings yourself. Look at Web sites such as REALTOR.com,
browse your local newspaper’s real estate section, and drive through
the neighborhood to spot For Sale signs. If you see a home you like,
write down the address and the name of the listing agent. Your real
estate agent will schedule a showing.
4. Be ready to make a decision. Spend a lot of time in advance deciding
what you must have in a home so you won’t be unsure when you have the
chance to make an offer.
5. Bid competitively. You may not want to start out offering the
absolute highest price you can afford, but don’t go too low to get a
deal. In a tight market, you’ll lose out.
6. Keep contingencies to a minimum. Restrictions such as needing to
sell your home before you move or wanting to delay the closing until a
certain date can make your offer unappealing. In a tight market, you’ll
probably be able to sell your house rapidly. Or talk to your lender
about getting a bridge loan to cover both mortgages for a short period.
7. Don’t get caught in a buying frenzy. Just because there’s
competition doesn’t mean you should just buy it. And even though you
want to make your offer attractive, don’t neglect inspections that help
ensure that your house is sound.