Getting into the real estate market for the first time can be very stressful. It is important to have a general understanding of what you should expect so you don't encounter any unforeseen challenges. Buying a new home can actually be a fun experience if you have the proper expectations.
- Contact a Realtor. There are a lot of real estate agents out there, but what you're looking for is a Realtor that specializes in working with buyers. A Realtor is different than a real estate agent in that they have certain guidelines and codes of ethics that may not apply to just real estate agents. You may not want to call the listing agent for a property you're interested in. Remember that they have the seller's interest in mind, not yours.
- Get pre-approved. It is very difficult to start your search without knowing your purchasing power. This is affected by your income, your credit score, down payment, and loan programs that are available to you. It's a good idea to work with a direct underwriter that understands your budget and your goals.
- Know What You Need. Do you know what you need versus what you would just like to have. Your wants and needs are important to consider when looking at real estate. It is very easy to lured in by your wants and forget what you really need. Some of your needs may be proximity to work, certain number of bedrooms or baths or being in a specific school district. Common wants would be granite counter tops, pool, stainless steel appliances. It's possible to change your wants over time, but your needs should be your primary focus.
- Find out what's going on where you're shopping for a home. Depending on what you're looking for and what area you're looking, you need to act accordingly. Most of the country is experiencing a buyer's market right now. That means there are more homes on market than qualified buyers that are looking to purchase. A buyer's market can result in some great bargains and terms. Not everyone is experiencing a buyer's market. There are segments of the market, such as entry level homes and condos where there are more buyers than active homes for sale. If this is the case you need to be aggressive in writing you offer, more often than not you will have some competition.
- Real Estate is about location. What makes your purchase a stable investment is the location of the property. Many first time home buyers sacrifice location for things that they would like to have. The location can't be changed, but the things you would like to have can. Research the best locations for your money and use that as a starting point.
- Negotiate. Negotiation is an art that depends on circumstance. If you're in a buyer's market than you will have many opportunities for a lot of homes that may fit your criteria. The most effective negotiating is done with knowing your market, because knowledge is leverage in the negotiation process. Make an offer according to your motivation to purchase the home your making an offer on.
- Caveat Emptor, Buyer Beware. Always do your due diligence to make sure you know what you're buying. Hire a home inspector to do a physical inspection of your property, and follow his recommendations for any further evaluation of the home. Regardless of how handy you may be or how much money you want to save, get a home inspection.
- Close escrow and move. Your dream of becoming a home owner has come to fruition. You now have the benefits of being a homeowner including pride of ownership, tax benefits, potential to accrue equity, and not having to answer to your landlord.
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