Home Buyer Essentials

You could be new to the home buying process or a veteran that has bought and sold many homes. Whether this is your first time or your last time purchasing real estate, it is a very good idea to review these essential tips before moving forward with your home purchase.

1. Buyer's Agent - Find an agent that is experienced in working with buyers like you. If you're a first time home buyer there are loan programs and tax incentives that the agent can introduce to you. Also you may not understand the nuances of buying a home and will require additional explanation of the process and "hand holding". Investors will need a buyer's agent that is familiar with real estate trends and income potential.

2. Financing - If you are financing your next property than you will need to find a lender that is honest and can lead you in the right direction depending on your situation. The best advertised rate may not be in your best interest. Many lenders charge points or fees to make their rate appear lower than their competition. If you see a rate or loan program that looks to good to be true, than examine the fine print.

3. Access Your Needs - Discuss with your agents your must haves, your like to haves, and your no ways. There will always be compromise in selecting your next home, so an understanding of what you are willing to sacrifice will make the process a lot easier. Although there is a reason why they say location, location, location.

4. Does it Feel Right - Your home evokes a feeling as much as a place to protect you from the elements. Make sure that you feel comfortable in your new home. Most buyers know in the first 15 seconds whether it is the right home for them. Trust your instinct.

5. Disclosures - You must read all of the disclosures that are provided by the seller. If you don't understand something or it's ambiguous, than get an explanation. Disclosures are not be taken lightly, they are the number one reason for real estate related law suites.

6. Area - Research the amount of inventory available, the average days on market, the medium home value, number of foreclosures and the demographic of the area. What a dollar buys you in one town may be worth fifty cents 3 miles down the road.

7. Due diligence - This simply means you must investigate every aspect of the property that is of importance to you now and down the road. A seller is obligated to disclose everything that they know, but what about the issues they aren't aware of. For example, if the crime rate is important to you than contact local law enforcement to get crime stats. If you're concerned about the schools, than research the specific schools in the neighborhoods you're interested in. Use your buyer's agent to help facilitate this process. You may want to also check with your insurance agency to make sure your prospective home is insurable before you close. There are reports you can order called CLUE reports (Comprehensive Loss Underwriting Exchange) at a minimal cost that will show all insurance claims over a specified period of time.

8. Know how to Negotiate - Negotiating requires a knowledge about what you're negotiating. It's not a good deal of you don't know what a good deal is. Fifteen percent off a home that is overpriced thirty percent is not a good deal. Five percent off a home that isn't overpriced can be a good bargain. Understanding the value of the home before making an offer is essential. Use the comparable properties that are similar to the one you are making an offer on as your ammunition for a bargain.

9. You must inspect - Just like you wouldn't buy a car without looking under the hood and taking it for a test drive, you shouldn't buy a home without a proper physical inspection. Make it a priority to have a qualified inspector thoroughly check your home to make sure you are making a sound investment. The price of the inspector may save you from buying the next money pit.

10. Get a Warranty - Yes even resale and foreclosure homes can get home warranties. They are a great investment for peace of mind during the first year or so in your new residence.

Ultimately what is most important is that you have the right people looking out for you. Buying a home should be an enjoyable experience, and having the right professionals can take the stress out of what can be a very stressful process. Remember there is a reason why you are doing this and that's to experience the pride and enjoyment of home ownership.

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