7 KEY STEPS TO BUYING A HOME
Deciding to purchase a home is one of the biggest and best decisions you can make! There is never a wrong time to buy the right home. Start the process with these easy-to-follow steps …
STEP 1: DECIDE TO BUY
There is never a wrong time to buy the right home. The key is finding the right property and taking the time to carefully evaluate your finances. A home purchase can provide many advantages. Purchasing your own home is a great investment that can deliver several financial benefits … equity build up, value appreciation, automatic savings and a new sense of pride!
STEP 2: RETAIN AND COUNT ON YOUR AGENT
Above all else, good agents put their clients first. As your advocate, your agent must always be committed to …
- Educating you about the current conditions of the market
- Analyzing what you want and what you need in your next home
- Coordinating the work of other needed professionals throughout the process
- Guiding you to homes that fit your criteria and budget
- Negotiating on your behalf to get you the best deal possible
- Checking and double-checking paperwork and deadlines
- Informing and discussing with you the solutions necessary to solve problems that may arise
STEP 3: SECURE YOUR FINANCING
To make the financing process as painless as possible, your agent should introduce you to the best-qualified financing consultant. This professional will work with you to make sure the financial aspect of your home purchase is stress free. And your agent should help you secure your financing by …
- Reviewing your current financials
- Discussing the options available to you during the home purchasing process
- Guiding you to an appropriate price point
- Negotiating on your behalf to get you the best deal – price, interest rates, loan approval
- Keeping you informed on the entire financial process throughout your purchase
STEP 4: FIND YOUR HOME
So you’ve met with your trusted advisors, 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. In addition to setting up a comprehensive Multiple Listing Service search, your agent will help you identify what’s important to you and your family, including …
- Amenities that 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 your community’s travel, shopping, entertainment infrastructure a priority
- What features in the new property are not negotiable
STEP 5: MAKE AN OFFER
Once you’ve found a home, the next step is deciding what purchase price you offer. It’s important to remember that a home is an investment. Your agent will give you information on other properties in the neighborhood to help you ensure you make an informed decision on price. 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 agent will give you comparable home values in the neighborhood to help you decide if your price point is on par
- Improvements – Your agent can give you a list of improvements that were made to the home and help you determine its market value
STEP 6: PERFORM DUE DILIGENCE
Knowing the improvements to the home, as well as problems that may not be obvious, will help you understand the commitment you are about to make before you complete the purchase. This way you’ll know what you are getting into before you complete the purchase. While updates can increase the home’s value, damages can take money out of your pocket after the purchase. Your main concern is the possibility of structural damage, which can come from water, shifting ground or poor construction. However, problems that appear to be big can be fixed with very little effort, and not a huge budget.
STEP 7: CLOSE THE DEAL
Once you’ve determined a price point you’re comfortable with, you’re in the home stretch! But, 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 and keep your financials steady throughout the buying process.
- Keep in touch with your agent and your financial consultant: It’s important to stay in constant communication with them during the home-buying process. Be sure to return all phone calls and complete paperwork promptly. Also, don’t be afraid to ask questions. Your agent and financial consultants are there to help!