- SAVE MONEY for down payment ahead of time.
- ALL REALTORS ARE NOT THE SAME! CONTACT A REPUTABLE REALTOR! PLEASE READ THE TESTIMONIALS FROM MY PAST CLIENTS. WE ARE HERE TO ANSWER ALL YOUR QUESTIONS AND MAKE EVERYTHING GO AS SMOOTHLY AND ENJOYABLE AS POSSIBLE. PLEASE GIVE US A CALL.
- Get PREQUALIFIED. Find a good lender to make sure they find the best program for you and who is proactive in putting out fires. It’s also better to get a local lender who knows the hurdles and hoops to jump through for your area. WE CAN RECOMMEND SEVERAL TRUSTED LENDERS IN YOUR AREA!
- A LARGER DOWNPAYMENT means a smaller monthly payment. 20% down eliminates the mortgage insurance, however you can get into a home with a much smaller down payment. If you are short on cash for a downpayment you can ask for the seller to contribute to your closing cost. This works well in a buyer’s market. Seller contributions can also be requested in a seller’s market but is much less likely to be accepted which makes it more difficult to buy the homes you want the most. However, if you are patient and a little more flexible you may still find a seller willing to contribute to your closing cost.
- BUDGET REALISTICALLY! Don’t try to keep up with the Jones’s!
- RESERVE some cash for improvements.
- REALISTICALLY EXAMINE SACRIFICES you may have to make to buy a home. Just because a lender pre-approves you for a loan doesn’t necessarily mean you should spend all of it. (ie, cash on hand, emergency fund, job security)
- LOCATION – Select a location or geographical area.
- Understand SCHOOLS affect home values
- Understand FUTURE HOME VALUES as with any investment, Real estate is not a recession-proof investment. No one can predict future value of a home.
THINGS TO CONSIDER WHILE LOOKING AT HOMES AND MAKING OFFERS
- FIXER UPPER could save you a bundle. Looking for the worst house in a good area can be a great strategy. However, make sure you get a professional to give you estimates for renovations. HIGHER PRICED HOMES could actually save you money since you don’t have repairs or renovations. WEIGH YOUR OPTIONS!
- LOW-BALLING doesn’t pay off! Be fair and realistic with your offers and negotiations. Playing hardball could cost you the home you really want! Especially in a competitive (seller’s) market!
THINGS TO DO DURING YOUR 10 DAY INSPECTION PERIOD (Which begins the day after your offer is accepted)
- HOME INSPECTIONS – Get a home and termite inspection and investigate any concerns. In Arizona you have 10 days from contract acceptance to do all of your investigations. Home inspections cost $400-$500 for most houses. WE CAN RECOMMEND SEVERAL TRUSTED HOME INSPECTORS IN YOUR AREA!
- HOME WARRANTY – It’s a Good idea to purchase a home warranty at least for the 1st year as protection from unexpected repairs because you don’t know the condition of the home. Cost usually $400-$500.
- NEGOTIATE FOR REPAIRS after the inspection. When you have a home inspection you will generally receive a long list of things the inspector recommends to be fixed. However, this is normal and he is just making you aware of what repairs should be made. It is a good idea to focus on just the big ticket items that are expensive and affect the safety of the home If you seem to be unreasonable with your request the seller is less likely to negotiate with you.
- READ DOCUMENTS (ie contract, HOA, CCR’s, loan documents, title documents and any other documents given to you)
- BUILDING PLANS Check building plans for the neighborhood. Building plans can have a positive or negative affect on home values and satisfaction.
- RENOVATIONS, REPAIRS AND ESTIMATES should be done by professionals.
- TALK TO NEIGHBORS, DRIVE THE NEIGHBORHOOD different times during the week, weekends day and night.
- BEFORE YOU FALL IN LOVE WITH THE HOME secure financing.
WE ARE HERE INSURE YOU FIND THE RIGHT HOUSE, AT THE RIGHT PRICE, IN THE RIGHT LOCATION AND MAKE THE PROCESS GO AS SMOOTHLY AS POSSIBLE! Please don't hestitate to give us a call to find out how we make a difference when you buy or sell a home!
Here is the link for the full HGTV article with some additional tips. (I added some other helpful information above that was not in this article.)
CLICK HERE for more helpful post and information for buying a home.