15 Blunder Blocking Tips for Homebuyers
Your Home buying process will either help or hinder your goal. So having a tried and true system is the key. In other words, this is not one of those times in life when you wing it.
These tips will help you prepare. You’ll get a leg up on your competition. And, yes, you will have to compete for the place you love.
All of the old run down houses with the avocado-colored appliance package and orange shag carpet will be available for anyone who wants to settle for second best.
You won’t have to worry about any of that. Why? Because you’re super smart. And good looking too. I bet you’re the best dancer ever to go through the home buying process.
Home Buying Process for Success
One thing you will realize very quickly is that this home buying process is simple but detailed. Follow the details laid out by your agent and you will get to skip over many of the stumbling blocks others encounter.
Now for step one.
Time to talk about how you are going to finance your new digs.
👍 Pre-Approval Opens Doors
Before you set your hopes up, you need to take this critical step being pre-approved. Knowing how much you can afford to secure a mortgage is necessary. The lender has to review your assets, credits, and income. Note that it won’t be a casual conversation over a cup of tea. The lender must see the exact amount of what you declare. It’s the only way to get pre-approved. It’s all part of your home buying process.
The thing about getting pre-approved is the expectations that come with it. You shouldn’t get too worked up with this. Expect possible disappointments along the way. What to do before you get pre-approved? For one thing, there’s no need to look at homes that cost more than what your funds will allow you.
Sellers Require Pre-Approvals
Note that sellers require pre-approvals with all offers in order to be taken seriously. If you look at houses before the process of home buying and go back to your lender to get pre-approved, other buyers who are pre-approved might enter the picture while you’re busy out there. Don’t lose that home you want because you didn’t go through the advised process. Be a better homebuyer than that. For some odd reason, lots of buyers want to skip this part. Learning the hard way is no fun. Missing out on the “perfect house” is for the birds.
📝 Prepare for Home Buying Before You Get Into It
Have you planned your home buying process thoroughly? Or have you just looked up a home and thought that would look good with your family in it? Avoid further hassles by preparing way more in advance. Below are the things you should do before jumping on the home buying train:
✅ Maintained your credit to qualify.
✅ Saved enough money for a down payment, closing costs and money for home maintenance after you own the home.
✅ Considered the area you want to move to for such things as the schools.
✅ Plan for the actual move and what it entails.
✅ Get boxes and pack up some of that stuff you’ll be taking with you.
✅ Get your last 2 paystubs, w2’s, and 2 months bank statements all PDF’d and ready to send when it’s time to apply for that home loan.
✅Speak to that loan officer. Get the pre-approval done.
Those are the basic you must include in your home buying plan. After that, identify your needs and wants first.
🚫 Lowball Offers Don’t Stick to Sellers
Have you identified your home buying power? Then only look up homes that go under your bracket. Don’t pine after homes that are priced way beyond what you can afford and try to offer the seller with only what you have. The seller will most likely reject your offer. You might be able to avoid this if your real estate agent has what it takes to negotiate the best terms and price for the property that fits your budget.
🙅 Put Other Major Purchases on Hold
Your money can only afford so much when it comes to home buying. Don’t sign a contract for your new home and dive head first to a shopping spree. So, hold yourself up. Home buying is a significant financial commitment. If you’re not committed enough, you might halt the process of your loan approval. Meanwhile, Set aside your ideal car or furniture until you’ve closed that deal on your new home purchase.
👤 Your Agent Must Be Keen on The Local Real Estate Market
If you’re having a Realtor® that helps you with the process, get a professional who stays on top of what is happening in your chosen neighborhood or area. Your Realtor® must be at least be able to know the following:
✅ know the prices are homes being sold for
✅ what’s the inventory level
✅ how fast are homes selling
✅ where is the market headed
✅ what type of market is it
✅ what benefits/disadvantages do a city hold
Above all, knowing more about the attributes of your real estate agent must have by reading our article on this matter. Note that even though you don’t know anything about the local real estate market, if you’ve picked the right Realtor®, most importantly you might just witness magic during your home buying experience. We run detailed market reports for the Greater Phoenix metro; it’s one thing we do to keep our ears to the ground and be aware of trends before they are obvious. Our market awareness is constantly saving our buyers and sellers money.
💬 Prepare to Meet at Fair Market Value
Give and take between the seller and the buyer can go for miles and miles. Seek harmony with the seller. While you can’t get everything that you want during the deal, it’s good for both of the parties to be courteous home buying process and negotiations.
Now you’ll want to determine your starting point. The price, the terms, and the supporting documentation all come into play here. Price is always at the top of any sellers list. So be real with your offer. Go in super low and risk turning the seller off for good. Instead, find out what the recent sales are in the neighborhood.
If there are no offers on the home you could make your offer towards the low end of the range. If the home is on the market for more than a month or two the seller will likely be more motivated to negotiate than if they are only on the market for a week or two.
If the home is rotting on the market and well past the time frame that your local zip code is experiencing for a home similar in size then that is typically a sign that the property is not priced as it should be.
🔨 Expect Reasonable Home Repairs
Part of the home buying process involves inspections. And we know that inspectors inspect and inspectors always find some issues. It is not uncommon for a home inspection report to identify dozens of issues. The key here is to put the serious findings into one bucket and the not so serious findings into another.
No need to worry about the broken knobs or squeaky hinges discovered in the home inspection process.
While minor things also need to be noted, you ultimately need to be concerned about those significant repairs that home needs in home buying. Think about how they can be resolved inexpensively without bugging the seller for petty repairs.
The seller might not give you credit for all those things that the inspector notes, but it won’t hurt to find out if they will take care of the more significant issues uncovered by your home inspector. Your representative will provide the proper verbiage and forms to convey your concerns.
Fill Out Inspection Repair Requests to Your Advantage
The handling of the inspection concerns is one place where your agent will prove their worth. The key is to keep cool. A seasoned pro will know how to get the point across without putting you in a week position. Having the proper forms filled out to your benefit will either get you in or keep you out of trouble. Make sure to hire the right person to be your agent.
💡 Take Advantage of Sellers Being Present on Showings
Sellers attending the showing is as rare as diamonds. Sometimes some of them still insist on being present. When they do, your hired real estate professional will have the chance to look for reasons to get you a reduced sales price. Know in advance whether they will be so you can speak with your agent about how to go through the negotiation process. As communication is vital with the seller, it also rings true with your team members.
💎 Don’t Be Afraid to Let the Home Seller Know About Your Wishes
In the home buying process, including a handwritten letter with your offer is smart. It’s never wrong to poke a seller’s heart to know if its soft enough get you that home you and your family loves. Lots of sellers in the market want to pass the house to someone who will give their home the same care that they did while they lived there.
If the selling family lived there for many years it is likely that you will be using the property in ways similar to what the current owner did when they raised their family there. Put it in writing. Craft a simple two or three paragraph letter where you share details with the seller about how your family will enjoy and care for their home.
📅 Be Aware of Real Estate Contract Deadlines
Make sure that your representative is well aware of contractual deadlines in terms of home buying. It’s important that you’re aware of them, too. If you’re using a title company, they’ll be there to help alert everyone to many of the deadlines too. Contractual deadlines are very important since these are legal time periods. During these periods, you need to provide a condition, as per the contract. Be careful not to mess with the deadlines. Missing them can harm the home sale and your escrow deposit. Follow them and be sure that the buyer’s agent you hire advises accordingly.
✨ Practice the Skill of Visualization
It’s a gift to see beyond the possibilities of a mere space. If you have this, then excellent. If you don’t, take time to practice it. See that clutter and awkward wall paint? Envision the things you can achieve if you modify them the right way. Look beyond the potentials that other buyers can’t see. A bit of paint and thorough cleaning might get you that dream home you’ve always wanted without spending the cost you can save.
❌ Don’t Take the Risk of Letting a Seller Stay Beyond the Closing Date
The home you just bought should be ready for you by the day of closing. Don’t let the Seller delay or cause problems by staying in the property after the closing date. How do you avoid this situation? Simple. Require them to be prepared to move by the day of closing. The contract should have language for this baked into the boilerplate template.
What to Do if Closing Needs to be Delayed?
Sometimes sellers have legitimate reasons to need some extra time to vacate the home. Perhaps the home they are buying is closing later than originally expected due to things out of their control. If this is the case have your agent draft a short term agreement that both sides sign prior to closing.
💸 Fair Market Value
Note that in home buying you don’t always need to buy a home that has 10%-20% below market value. As real estate is considered one of the best investment, you can still get your money’s worth at fair market value. Present your best offer after you and your agent have reviewed it. Base it on comparable and recent home sales. If the seller has a top-notch representative on his/her side, their property should be priced right and will likely draw lots of eligible buyers. So be prepared to pay the seller what the home is worth unless your agent gives you good reason to do otherwise.
💲 Don’t Let a Small Amount of Money Take Away Your Dream Home
Part of the home buying process is crossing the finish line with the home you’ve been dreaming of.
What’s a thousand dollar or so for a chance to live in your perfect home for years to come? If you find yourself bickering about a little money and changing your mind because of it, take a step back and re-evaluate your stance. Clearly, think about what the home has to offer and you can find these same attributes easily on other properties at the same price? If you’re finding it hard to evaluate the technicalities, it’s always good to turn to your agent for advice. They can provide a voice of reason during your home buying process.
💁 How Important Is It to Have a Real Estate Agent?
Having a Realtor® that has proper knowledge in selling homes and is wise about how to use is an advantage. These professionals have invested their time and effort to be the best at their chosen career. They will be your advocate in every turn as you navigate your home buying process. Engaging in real estate marketing is a big deal and needs a mind that knows the local real estate market.
While agents are your saving grace when you want a smooth-sailing home buying experience, studying these tips on how to be better at home buying will always help you along the way. For more ideas about the real estate market and how to deal with it, feel free to stay updated by scanning through our pages. Good luck in finding your next home!
How NOT to Make an Offer on a Home – by Karen Highland
Top Reasons Why Real Estate Agents Request A Pre-Approval – by Kyle Hiscock
Understanding Loan Commitment – by Joe Boylan
Home Buying Tips For A Seller’s Market – by Debbie Drummond
10 Biggest Mortgage Mistakes First-Time Home Buyers Make -by Xavier De Buck
17 Things You Should Know Before Moving Cross Country! – by Ryan Fitzgerald