We’re first time home buyers. Where do we begin? (Part 2)
For those of who just picking up the conversation today, check out Part One to read my introduction to the home buying process. If you are following along, so far you have gotten pre-approved for your mortgage, researched and chosen a buyer’s agent to be your advocate, and hopefully saved money for your down payment. Now the fun begins!
Once you are pre-approved for a loan and have determined what price range you are comfortable shopping in, you can start your home search. Typically, this begins with an online search – your buyer’s agent should set you up to receive new properties as they become available. As interesting homes come on the market, you will want to tour them immediately. In most price ranges, we have an extreme shortage of inventory and those who snooze tend to lose. It is important to have seen enough properties upfront so that when you see the right one, you know it and are ready to make a move. When evaluating homes, it is also important to be realistic. There is no perfect home, so establish your list of criteria upfront. If a home achieves 7 out of 10 wish list items, in real estate we call that a home run. If you are going to hold out for all 10, a move is probably not in the cards for you in the short run.
Once you find a home that works for you, in this market you do need to anticipate a bidding war is a realistic possibility. Interestingly, even homes that have sat on the market for seemingly prolonged periods of time will often receive multiple offers, so do not delay in making an offer if you like a home. If there are multiple offers, do not assume you will get a second chance – work with your buyers offer to make the highest, “cleanest” offer that you can out of the gate.
Once you have a home under agreement and have deposited your hand money (anticipate 1%-5% of your purchase price depending on your price range), you will be ready to schedule your inspections. Next week I will talk more about inspections and how to get through them!
Experience Makes
The Difference
If you’re moving across town, from elsewhere in the state, or even relocating
across the country, I can help you find the perfect home!