Tips for Home Buyers
There are so many moving parts when buying or selling a home. For some people, just thinking about diving into the market can cause stress. Unless you’re actually involved in the day-to-day process, the lingo and the rules of the game can be confusing. That’s where we come in! As licensed real estate agents, our mission is to guide you through the real estate process every step of the way. It doesn’t matter whether you’re buying, selling or just entertaining the idea. We are sharing Five Tips Home Buyers Should Know about their roles in a transaction.
People who have gone through the home buying process are often eager to give advice. Unfortunately, much of that home buying advice no longer applies in the current housing market.
Tips for Making An Offer
Look at Tip #1 in the image above. Your offer sends a message. Some home buyers believe that they should make an offer that’s less than what they’re actually willing to pay for a home. They think that this will give them room to negotiate. It is a good idea for home buyers to base their offer on sales of similar homes in the area. Any repairs that may be needed can be negotiated as a separate process.
Many home buyers were also told to make an offer immediately. When the inventory is low, homes go under contract very quickly. In a hot market, waiting may mean that you won’t get the home you want. The speed of making an offer isn’t as important as making “the right” offer! We can easily provide our home buyers with a market analysis that shows them the fair market value of the home. We can also factor in the cost of any repairs that may be needed, regardless of whether the home seller will make repairs or not.
Tips About The Different Seasons
There is a lot of bad or outdated advice for home buyers. One of them suggests that buyers “wait for spring” to buy. There is constant debate about what is the busiest season in real estate. Many people believe that it is the Spring. In some cases, there may be more inventory in the spring. There is also more competition for that inventory. Sellers tend to be more optimistic about getting a higher price in the spring and may be less willing to negotiate.
When we are in a period where home prices seem to constantly rise, many home buyers are advised to wait for prices to come down. If the potential home buyers are currently renting a home, the rent that they are paying is likely also going up. In many market areas, it is cheaper to buy a home than it is to rent one. This is especially true when mortgage interest rates are very low. For these potential home buyers, paying a high monthly rent hoping for a better deal likely will not work. That’s because real estate prices historically appreciate between 3 and 5% every year. There are times, particularly during an economic recession, that home prices will come down. Those recessions typically only happen about every 8 to 12 years.
It used to be that home buyers decided what kind of house they needed and then started looking for it. The factors to be considered are the number of bedrooms and bathrooms, and if there is a yard, garage or a basement, among other things. When considering buying a home, there are only three factors that you can change: They are (1) the home style and size, (2) the price of the home, and (3) the neighborhood where the home is located. Once you decide on the type and size of house that will meet your needs, you can search neighborhoods to see if the prices work for your budget. If the prices don’t work, then you need to either change your price or your neighborhood.
Tips About New Construction
Many home buyers have been told that if they have specific wants or needs, new construction was the way to go. It makes sense—if you’re hand-picking every finish and knob, it probably will end up being exactly the house you had in mind. The problem with new construction is that there isn’t enough. Ever since the market crash of 2007 to 2009, new home building has been severely down. It is possible to find an existing home to buy that, with a little work, will meet your needs. It’s easy for a home buyer to find a great house and then invest a little bit of time and money to end up with a home that is just right.
Conclusion
Obviously, there is a lot to consider. If you’re not making a move now, you can keep this information handy for when you’re ready! You don’t need to start the real estate process alone. Don’t hesitate to contact us with any questions that you have about the market. Also, if you know someone who may benefit from this information, feel free to pass it on to them. Together, we can de-mystify the home buying process and get you into your dream home.
This is an article that is part of our Client Appreciation Program and is found in the Buying a Home category.
