It’s difficult to buy a house these days. With real estate prices on the rise, buyers have to compete for homes in their desired neighborhoods and price range.
But once you know what you’re looking for and are armed with some knowledge about the home-buying process, it can be an exciting time!
Here are five things new buyers should know about buying a house:
1. The process is usually much shorter than you think.
Not every buyer needs to go through the same long, arduous home-buying process that we might imagine:
• Homes are often put on the market within days of being listed, and buyers can quickly make an offer on them if they want.
• There’s a good chance the buyer will be able to close within a month or two.
• The only time it’s likely that buying process would take months is if there are multiple offers on the home, and the seller needs to pick one.
2. You can make an offer without an agent.
A lot of buyers these days are going to open houses on their own, even though they might not know anything about the process—but that doesn’t mean you need a professional.
• Buyers often negotiate for themselves and submit offers through email or in printed form with no realtor involvement at all.
• Realtors are still important if you’re not sure what to offer, or how much the home is worth—but an agent won’t be involved in every aspect of your purchase.
And don’t forget: You can always hire a realtor after submitting your offer!
3. You need to know where you’ll be living.
It sounds obvious, but some people don’t figure out which area they want to live in before starting their search—and that can lead them on a wild goose chase for months.
• Plan your time and transportation around the homes you’re viewing: If it’s not feasible for you to go back and forth across town, you might end up viewing only homes an hour away from your office.
• And if you’re contemplating a move outside of the city or state, remember that it will take longer for you to get around in those areas: Consider renting there first so that you can make sure it’s really what you want.
• And if you’re going to live with someone else, make sure that person has a say in the purchase: The whole home is yours together.
4. You’ll need to have a plan for financing.
There are two main types of loans available today:
• Traditional—which puts you in debt and will require you to pay interest on the loan over time
• FHA, VA, or USDA Loans—which all put less pressure on your budget upfront but often come with more strings attached since they are federally backed.
• Other options include loans from local banks or credit unions, which might not be as competitively priced but will still get the job done for you.
So before starting your house hunt, make sure that you know what type of loan you’re qualified to apply for—and how much money you’ll need upfront!
5. You’ll have to be a good negotiator.
It is the buyer’s responsibility, not that of the seller, to initiate and take part in negotiation during this process.
• The buyer should know what they want before going into negotiations so as to avoid wasting time on properties outside their price range or desired location.
• One way you can get a sense of what an acceptable offer might be (whether you’re on the buying or selling end) is to look at recent home sales in your area.
• Remember, though: Never make offers below what you are willing to pay because it will seem like a lowball and insult the seller!
Conclusion:
This is a brief guide on the five most important things new buyers should know about buying a home.
Buyers should know what type of loan they are qualified to apply for before starting a search and must be aware of the financial implications of taking out a loan.
Real estate agents should not be relied on in every aspect of the purchase, customers can negotiate through email or other means themselves.
Lastly, it is imperative to remember that the seller would never want to lose money by selling under market value, so buyers should never make low-ball offers.
I wish you the best of luck in your future home search and hope that these tips will make it an easier process for you.