The financial and psychological impact of buying a home make
it one of lifes biggest events. Whether
you are buying your first home, moving up to your dream home, or downsizing
your home and your life after the kids have gone, it is important to understand
the keys for success for buying a home.
Making the wrong decision in buying a home can have long
lasting effects, while making a wise decision in home buying can greatly
enhance the overall value of the investment.
It is a good idea to learn all you can about home buying and mortgages
before setting out to purchase the home of your dreams.
While there are plenty of web sites designed to help first
time homeowners learn all they can, most financial experts say that there is no
substitute for the good old one-on-one learning. Fortunately, most mortgage
lenders, home inspectors and real estate agents will be able to provide this
kind of one-on-one learning.
When buying a home it is often best to use a systematic
approach as this is often the best way to be sure that all decisions are based
on information and reason, not on impulse or emotion. Buying a home can be an emotional process,
nevertheless it is imperative to keep your emotions under control and not let
them cloud your judgment.
There are five keys to remember when it comes to buying a
home and shopping smart, and they are:
#1 – Get your financing lined up before you find your home
There are few things in life as disappointing as losing out
on the home of your dreams due to not being able to secure funding. While the desire to get out there and search
for that great home is understandable, it is vital to line up the financing you
will need before you start shopping for a home.
Getting the financing ahead of time has a number of
important advantages, including knowing how much you can buy and gaining more
respect from the listing agents. By
knowing how much home you can afford before you shop you will avoid wasting
your time looking at unaffordable properties, and your agent can show you the
homes in your price range.
It is also important to take a good look at the various
types of mortgages on the market before getting started in the home buying
process. These days, mortgages come in
far more choices than the typical 15 or 30 year fixed. For that reason,
potential home buyers need to understand how each type of mortgage works, and
to gauge which mortgage is the best choice for their needs.
#2 – Look at the community, not just the home
It is a good idea to look at the entire community, instead
of focusing on a single home. This can be a particularly important thing to
consider for those moving to a new metropolitan area, as these buyers will be
unfamiliar with the local climate and lifestyle. It is crucial to determine the areas of town
that are most desirable, and to consider things like distance from work and
local shopping opportunities.
We have all heard that location is the key consideration
when it comes to real estate, and that is certainly the case. Buying a house in the wrong area can be a big
mistake, and it is important to choose the location as well as the home. Potential buyers can learn a great deal about
the nature of the various neighborhoods simply by driving around town, as well
as by talking to other residents.
#3 – Be fair with your first offer
Trying to lowball a seller on the first offer can backfire,
as can paying too much. It is important to carefully evaluate the local market,
and to compare the asking price of the home with what similar houses in the
neighborhood have sold for.
Comparing the sales of comparable homes, what are known as
"comps" in the industry, is one of the best ways to determine what is
fair, and to make sure that you neither overpay or underbid on the property.
#4 – Always get a home inspection
Always investigate the home for any possible defects before
making an offer. Compared to the cost of
the average home, the price of a quality home inspection is virtually
negligible. Hence, get a good home inspection done before you buy.
To find the best home inspector, it is a good idea to seek
out word of mouth referrals as many of the best home inspectors rely on word of
#5 – Do not alienate the sellers of the home
Many real estate deals have fallen apart due to the personal
animosity of the buyer and the seller.
It is important to avoid alienating the seller of the home during the
process, and to avoid nitpicking every little detail during the sale.
Keeping the good will of the seller will help the
transaction go smoothly, and it will provide the best environment for seller
and buyer alike. Click here to search for homes in North San Diego County
There are some people who have not purchased homes because they are un
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