So... you think you are ready to go buy a home?
1. Find a REALTOR whom you can relate to. Buying a home is an emotional commitment. It's critical that the agent you choose is both skilled and a good fit with your personality. Have your own agent show you homes, not the listing agent. Call your agent if you see a home you want to tour.
Your Realtor will make all the appointments and represent YOU in the offer. The listing agent represents the seller and cannot disclose all that you will need to know about the property & the seller. Find an agent that makes his or her career full time in real estate. Agents usually know one another so if you are unhappy working with an agent and want to change to another please let them know that you will be doing so. This alleviates mis-communications and it's just the right thing to do. An agent will work hard for you if you are loyal.
2. The right house is waiting for you. Sometimes deals just don't work out. You will know as soon as you walk into the perfect home. Everything will fall into place perfectly if it is meant to be. If not...keep looking and stay open to new ideas. If it feels right then make an offer...don't procrastinate.
3. Commission is paid by the sellers. This is how your agent gets paid. Basically, the seller has agreed with his listing agent an amount to pay the buyer's agent at closing. Your agent may show you homes for a long time or it might only be a few homes. All negotiated commission is divided among the agents at closing. The buyer will not have to pay for this.
4. Don't ask for too many opinions from friends and family. It's natural to want reassurance for a big decision, but too many ideas will make it harder to make a decision. If Grandpa is not going to live in the house he isn't going to like all those steep stairs, pool, etc. Negative opinions can spoil all your excitement.
5. Accept that no house is perfect. Focus in on the things that are most important to you and let the minor ones go.
6. Don't try to be a killer negotiator. Trying to "win" by getting an extra-low price may lose you the home you love. Angry sellers do not try to be helpful if you need special considerations later before closing like extra time to get the financing right. Don't be stubborn over the small stuff.
7. Get approved for a mortgage before you find a home. A good lender will see your credit report and offer help in disputing items that need to be removed. This will raise your score and possibly get you a lower interest rate. Not all lenders are skilled in this. Same as with your agent the lender needs to fit with your personality and return your calls promptly. The best ones stay in close contact with your agent also. You can bet that your agent has a good idea of the best lenders to work with to get a successful closing. It can all fall apart by closing time if you don't have the right lender.
8. Factor in maintenance and repair costs in your post-home buying budget. Even in a new home there will be some costs. Homes are not perfect and even though you have had many repairs made after a home inspection sellers are not going to patch every hole in the walls and leave it spotless. You may have to shampoo carpet and upgrade fixtures to your liking. It's all a part of buying a home.
Finding a new home in the Bluegrass has never been so easy!
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Lizette Fitzpatrick- Principal Broker at Lizette Realty.
Publisher/Author for the only Central Kentucky email newsletter on local real estate listings and sold properties, Kentucky relocation, local events, homeowner information and fun! For more information on Kentucky Horse Farms, Lizette Realty, Madison County, Fayette County, Richmond or Lexington KY real estate click on Lizette.us.
Copyright © 2010 by Lizette Fitzpatrick, All Rights Reserved
*8 Things You Need To Know Before Shopping For A New Home*
A nice post. I would respectfully disagree that the commision is paid by the seller. It is the buyer who brings the funds to the table... and unfortunately in my neck of the woods, commission are rarely split evenly...
Always obtain a Realtor when purchasing a new home--seller pays for it
Great post and you were so right to make "Find a REALTOR whom you can relate to" number 1 in your list!
Lizette - What a great list that you have prepared. I like number one too. I wish they would realize this. I am about to blog on the same thing. The listing agent represents the seller. I represent you as the buyer. As your negotiator.
Here commissions are paid by the seller.
Anyway I am reblogging and suggesting.
Nice ! Quick, Simple, and Valuable ! I like it :o)
Great tips. My favorite is number six.
Great Blog and sooo True!!My favorite would be #7!!! It just would be easier on everyone if Buyers were have their Financing in Place before they start Looking!!
Have A great Week!!!
Barbara
Lizette,
That is good advice no matter where a person lives.
Lizette - this is a terrific list and very well explained. Would be a wonderful thing for every buyer to read before they begin.
I think I will print this list to put in my buyer packets. I always hand them out when I first meet a client.
Featured @ Club Chaos
Lizette - I haven't visited your blog in a while; I like the new picture. Great list; points 7 & 8 are the ones people often miss. I remember buying my first home. When I found out how much maintenance costs were I quickly adjusted my housing budget.
Lizette - Excellent post, it is spot on. My favorite by far is #4 don't ask and I hate to say it, but they shouldn't listen to all the advice given either. I can't count how many relatives become real estate experts when a family member is buying a home. I have clients telling me Aunt Flo said I should offer 30% off the asking price, when the house is bank owned, under priced and will sell for $50K over asking.
Great post Lizette, you hit on all the biggies.
I think this is a great post!
A buyer has a lot to learn before shopping
your friend in Charlottesville
Exceptional Post!
"Find a REALTOR you can relate to" - CRITICAL! Before entering real estate, I sat on the other side of the table as a buyer multiple times and used to think that it wasn't important whether I related to or even liked my REALTOR, as long as they were excellent at what they did. WOW! Was I wrong! I quickly learned that if I couldn't relate to my REALTOR, how in the heck could I expect them to understand my needs and wants? How could I expect them to relate to me? And if they didn't relate to me, odds were that they didn't care about much more than the commission. No party in that situation is happy or successful.
"Don't try to be a killer negotiator" - Another former problem I encountered in my much, much younger years. All day and everyday I negotiated - with employees, with customers, with vendors...that is what I did and I thought I was pretty good at it. So when it came time to purchase a home, I immediately wanted to put my negotiator hat on and WIN, WIN, WIN!!!
Well, after the final offer was refused on the first house I ever attempted to purchase and I offended the sellers, I changed proverbial chairs and thought about the situation in a more empathetical manner. What would I feel like if I were selling the house and I walked in...YIKES! I knew it was time to change my ways and do EXACTLY what you have suggested in your post - make it a WIN, WIN situation, not an I WIN situation!
Thanks for the post, it was terrific!
Great post! Simple and to the point. 8 things every home buyer should know and consider. Good idea putting it in the buyer packets!
NICE POST, VERY INFORMATIVE. KEEP THEM COMING
Great points! And be prepared for some "ups and downs" during the home buying process, and remember it will all work out in the end.
Thanks,
Mario
I'm book marking this post, thanks for giving me the tips I plan on using them soon.
Lizette these are good points. The friends and family involvement in the process has to be managed as it could derail the transaction.
Great 1-2-3 Punch on what really needs to be thought about when buying a house!
Hi Lizette -- There is so much good info in here for a buyer that they would really be wise to interalize these things. The fact that YOU pointed it out underscrores the need for a buyer to hire an exceptional agent to represent them, in addition to other aspects.
This is a great list for buyers to consider and makes the explanations simple.
All great tips! Now to get the buyers to cooperate!
Great info. My only change would be to move the pre-qual up to number two.
I agree that the pre-qual needs to be closer to the top. Even with that sometimes the client still can't get to a closing after it goes to underwriting.
Great list - too often people do not know this!!
Lizette - Very well thought out and written. We have something very similar we use to qualify our buyers...
Well written advice to give anyone looking to purchase a home.