Whether you’re tired of renting, need more space or want to make an upgrade, buying your first home is the solution. However, if you’ve never bought a home before, the experience can seem a bit daunting at first. Let’s explore a few useful tips that are helpful for first-time homebuyers who are new to the process of buying real estate.
Tip #1: Begin With The End In Mind
Before you start exploring local home listings and shopping around, it’s worth asking yourself both what you ‘need’ in a home and what you ‘want’ in a home. For example, are you single or married? If you are married or are likely to be in the near future, are you planning on having a family? Will you need space for pets? What area of the city is most convenient for your commute? And so on. If you start by knowing exactly what you need, it will be that much easier to narrow down your options. Short and long term considerations are important when making a financial and lifestyle decision as big as buying a home.
Tip #2: The Market Determines The Value Of A House
The second tip to keep in mind is that your local real estate market is what determines how much a home is worth. What you can afford has nothing to do with a home’s value, nor does your opinion of its current condition. In some cities, homes will sell with the intention of being torn down after the purchase completes. For this reason, we highly recommend working with a local real estate agent that knows the market place inside and out.
Tip #3: Let the Market (and your Real Estate Agent) Make Your Offer
Finally, when you’re ready to make an offer, it should be decided upon to offer a price reflective of the market you’re in. This is where working with a buyers agent can be a huge advantage over going at it alone. If you’re in a strong seller’s market, you may have to make a high offer and forego some contingencies to be competitive. In a softer market, you can afford to make an offer that’s more open to negotiations. Your real estate agent can show you comparable sales and give you a detailed analysis of the local market to help determine where your offer should start.
Before you’re ready to buy your first home, please be sure to reach out to your local Mason Mac loan officer and they’ll get you prepared for a successful home buying journey.