William Tierney, an associate in our Scituate, MA office and one of our tech superstar agents, discusses 5 key concepts for homebuyers to ponder. Buying a home can be daunting process. However, some of the key steps for homebuying preparation are more intuitive than you think. We’ll let William take the floor and discuss some of the key steps in homebuying prep. For more buying and selling tips, please visit William’s blog.
Any good real estate professional who has ever spent time with a prospective home buyer would more than eagerly work with a buyer who is candid and methodical with their approach to the home search process. Here are 5 Concepts For Home Buyers To Ponder that will improve your relationship with your REALTOR, increase communication, and simplify the home search process. While none of these concepts are the least bit new, but if put in practice during your home search, you achieve a better experience.
Here is my Home Buyer Check List:
For many home buyers, the purchase of a home can be one of the largest financial decisions that one will make in their lifetime. If you are about to make a large financial decision, you should undoubtedly educate yourself on both the process and the local market, or markets, in which you are searching for a home.
When it comes time to educate yourself on your local market, it may make sense to sign up for a service that will email you a daily or weekly update on the new listings that that have arrived on the market in your price range and specific criteria. In time this will help you gain a sense of value. You can Click Here to sign up and receive daily/weekly updates from me. Next you should understand the local metrics of the market you are searching within. How many homes sell each month? And what to they sell at on a relative basis? Is this basis price per square foot? Or is it in relationship to the tax assessment? There are a number of ways to price out a homes valuation. At William Raveis Real Estate we offer a monthly newsletter to inform you of these metrics so that you can be the informed consumer. Click Here to sign up to receive our monthly newsletter for your particular town or towns.
Give Honest Feedback.
In all but a few cases, the REALTOR who has shown you a particular home does not own the home you have seen. As real estate professionals, we don’t get offended by your opinion. There is nothing more productive that you can do in the home buying process than to be completely candid with your real estate professional. Do not be bashful, you will only confuse your real estate professional by misleading them about your home tastes and desires. Heck, don’t be afraid to tell your REALTOR you think the home, or some of its features, are ugly! The more your real estate professional understands your tastes, wants, and needs, the better your real estate professional can hone in on the home that is “the one” for you. I have always said, “I don’t help people find a home, I help them eliminate them” Said differently, the more your real estate professional knows about your tastes, the better they can pair down the list of choices, and then shorten up the list of home that you preview. Thus you only see the homes that truly match your own personal unique criteria.
Keep an Open Mind.
Being a bit open minded while search for your home can do both the home buyer and the real estate professional a world of good. When I say open-minded, I don’t intend for the contemporary buyer to consider an antique. However, often the “ideal home” is one street out of target area. Or, the ideal home is found in the next price point, but it just so happens that “the ideal” home is over-priced, so it didn’t hit your search radar. Many good real estate professionals can often find that “ideal home” because they know what you want, but sometimes the search criteria needs a simple tweak to find the home that meets the home buyer’s ideal criteria.
Be Prepared to Act.
How many times have you heard, “Well we weren’t really looking, but this home came on the market so…” There will be those times that you will find the home of your dreams, the very unique one that fits all of your criteria. There is nothing more frustrating for a home buyer to have to go through the home search trying to find “the one” that is good as the home that got away because the home buyer was not prepared to act at the time their dream home came on the market. Being prepared to act means having your financial affairs in order Or if you have a home to sell, could it go on the market quickly so that you could move up, or downsize to, your dream home?
Know Your Budget.
However knowledgeable one can be about their market, or ready to act on the rare opportunity to acquire your dream home, “the one”, “the ideal home” you need to know how you are going to pay for it. Knowing in advance how much home you can afford, and how much home you can afford using different financing programs will lead you to the homes best suited for your budget.
In today’s market, the one item that nearly all seller’s want demonstrated is how will the buyer fund the purchase, and is there documentation to back it up. One way to best understand how to determine how much home a home buyer can afford is to sit with a mortgage professional and have them issue you a Pre-Approval Letter. A reputable mortgage professional, like the ones at William Raveis Mortgage, can meet with you, discuss your financial goals, and help you determine the best financing choices for you. These choices will enable the home buyer learn what price point is appropriate relative to their financial goals. And combine this knowledge with a pre-approval letter issued from the mortgage professional and the home search process goes much more smoothly.
Knowing your budget will enable you to avoid the sticky situation of having to back out of an accepted offer due to the inability of the buyer to be able to finance the transaction. Neither the buyer nor the seller really enjoy when an transaction does not come to fruition due to financing. As a home buyer, it is very difficult to have to down in price range after envisioning yourself, and shopping at a higher price point. Hence, getting a handle on an appropriate price budget will do wonders for simplifying the process.
The above is a simple, not so new, but often over looked Home Buyer Check List. When these Five Concepts to Ponder are practiced in concert, your home search process will proceed in a much smoother and productive fashion.