First-Time Homebuyers: Follow These 10 Steps to Ensure Your Success

If you’re about to make your first home purchase, following these 10 steps will set you up for a successful deal.

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If you’re about to purchase your first home, there are 10 important steps you should follow to ensure your success. 

1. Check things out online. This is often the very first thing new homebuyers will do when they begin their search. 

2. Start saving for your down payment. While a typical down payment will range between 10% and 25%, there are currently financing options available that allow buyers to put down much less. 

3. Check your credit. This can be done through a major credit bureau or online using a service such as Credit Karma.

4. Decide on a Realtor. It’s important to work with someone who has been referred to you by a person you know and trust. 

5. Determine what type of home you want.

6. Consider the pros and cons of different neighborhoods. Having amenities, schools, or family nearby may help inform your decision on whether to purchase a certain home. 

7. Decide on a lender. Mortgage brokers will typically be better-suited to help you find a more personalized financing option than a lender at a traditional bank. 

Everyone wants a nice home, but it’s important to not overspend.

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8. Know your future employment plans. Do not change jobs during your home search, as this could jeopardize your financing. 

9. Decide on your budget. Everyone wants a nice home, but it’s important to not overspend. 

10. Visit open houses. This can be a great way to see what you like and dislike about various homes without the pressure of a formal showing. 

If you have any other questions or would like more information, feel free to give us a call or send us an email. We look forward to hearing from you soon.

Buying New Construction: Pros and Cons

If you plan on buying new construction, there are a few key things you need to know.

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Before buying a new construction property, there are a few important things you need to know.

One of the benefits to think about is that you’ll have the opportunity to live where no one else has before. 

You’ll also often have the opportunity to customize the property, depending on how far along construction is. This includes choosing details such as finishes and maybe even the floor plan. 

However, there are some drawbacks. New construction homes are more expensive, for instance. Another disadvantage of buying new construction is that you aren’t working with a traditional seller. These transactions are what developers do for a living, so no emotional decisions will be involved. The decisions a developer makes will be strictly financial. 

Now that we’ve discussed a couple of pros and cons, let’s cover the three things you must do if you move forward with a new construction purchase. 

1. Work with your own Realtor. If you walk into a model home or condo unit by yourself, you are going to meet with the developer’s agent. This agent is looking out for the developer’s best interests, not yours. Think of it this way: If you were to appear in court, would you want to represent yourself or would you want the help of a professional? Of course, you would work with a professional. This goes for real estate as well.  You deserve an advocate in the real estate process.
2. Do your research. Find out which local builders are reputable and which are not. A lot of research can be done online on your own, but it’s also certainly a good idea to get the advice of your Realtor. 
3. Read the fine print. Standard contracts for resale purchases throughout most of the US are written without advantage to either party, but this isn’t the case when it comes to purchase contracts for new construction. These purchase contracts are most often written by the developer’s attorney. A knowledgeable Realtor will know what to look for when reviewing this contract so that the deal is as fair as possible. 

There are a few more things to keep in mind when buying new construction. If you’re purchasing a new construction property that is one of several in a single area, the seller will often be inflexible on the list price. 

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With the help of your agent and an architect, you can build a home exactly to your desires.

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If they lowered the price for you, they would be asked to do so by everyone else. In other words, a reduced price will not likely be an option. However, they may offer upgrades such as hardwood floors, appliances, or landscaping touches for little to no extra cost. 

Depending on your area, there may be developers who build homes that are truly from scratch. This gives you the opportunity to fully customize the property. With the help of your agent and an architect, you can build a home exactly to your desires. Keep in mind, though, that this is the most expensive option for new construction. 

Regardless of the route you choose when buying new construction, you should prepare for the number of choices you will be asked to make throughout the process. The excitement of these choices may wane when you realize how truly involved you will be with the construction of the home. 

If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.

Are Interest Rates on the Rise?

Based on the trends we’re seeing, interest rates are likely to rise. What does this

 mean for you?

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In truth, we can’t really predict what interest rates will do. However, it is safe to assume that based on trends we’ve seen, they will most likely rise. 

But what does this mean for you and your real estate transaction? Well, as a buyer this means that you won’t be able to afford as much as you could with lower interest rates. 

To understand how much this will affect your buying power, a good rule of thumb to follow is this: For every full price point the interest rate goes up, it will cost you 10% more to buy a home. In the case of a 30-year loan, this kind of increase can result in tens of thousands of dollars. 

Sellers are affected, as well. Rising interest rates put a natural downward pressure on home values, meaning your property will likely sell for less.

Ultimately, your money is your own. You should buy or sell when the time is right for you. However, do be mindful of how circumstances in the market will influence that transaction.

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Be mindful of how circumstances in the market will influence your transactions.

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The most important thing is to consider your circumstances, be smart, and work with a quality Realtor who will be able to guide you through the process.

If you have any other questions or would like more information, feel free to give me a call or send me an email.

Avoid These Top 9 Buyer Mistakes

If you’re a homebuyer and you want your home buying process to go as smoothly as possible, there are nine main mistakes you must avoid.

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If you’re a buyer, there are 9 mistakes you must avoid during the home buying process:

1. Not having clarity about what you want. When you first start your search, it obviously makes sense to have a wider scope and gradually narrow that. When you’re making an offer, though, you want to know exactly what you’re looking for and exactly what’s important to you. 

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Know exactly what you want and what’s important to you.

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2. Not being pre-approved. Regardless of what type of market you’re in, it’s very important to go through the pre-approval process. 

3. Avoid skipping the inspection process. It may seem like your home is in great shape, but the hundreds of dollars you spend on an inspection may save you thousands down the road. 

4. Making a purchase based on emotion. Even if you like a home and it holds a lot of people, you want to make sure you tie logic as well as emotion into your decision. 

5. Overspending. If the home you like is reaching past your comfort level in terms of cost, don’t overspend for it.  

6. Not knowing the neighborhood. This is something that can get you into trouble, but if you work with a great agent, they’ll know all about the area even if you don’t.

7. Making other large purchases during the home buying process. Whether it’s a new car or a bed set, a large purchase can potentially derail your purpose. 

8. Not considering resale value. This is another area a good agent can assist you with by knowing what future buyers of your home will want five or 10 years down the road. 

9. Always looking for a better deal. When you have the clarity of what you want that we mentioned above, you’ll know that you’re comfortable with the home, its price, and all of its different aspects. When you pull the trigger and make the decision to buy, don’t assume there will always be a better place down the road. The reality is, there may not be. 

If you have any questions about the top buyer mistakes to avoid or you’re looking to buy or sell a home in our market, feel free to give me a call or send me an email. I look forward to hearing from you.

7 Tips for Dealing With Multiple Offers

Competing against multiple offers isn’t an ideal situation. However, there are plenty of ways to help your offer stand out.

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Over the course of my career, I’ve come to realize that there are certain strategies that are more effective than others when it comes to dealing with multiple offer situations. If you’re a buyer, you want to be sure you’re putting your best foot forward. 

Here are my seven tips for helping your offer stand out among the crowd:

1. Get pre-approved.
2. Know what your plans are for the home, whether it's to own it long-term or flip it in a year or two.
3. Put down the maximum amount possible. If cash is an option, it’s always going to be appealing to the seller. If you’re not a cash buyer, being able to put at least 20% down is very important.
4. Align yourself with the needs of the seller. Find out what those needs are; they don’t always have to do with money.

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Find out what the seller’s needs are and align yourself with them.

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5. Know what the market will bear for a particular home.
6. Know your agent’s reputation. Oftentimes, the buyer’s agent is taking into consideration who the seller’s agent is and may prefer your agent over another buyer’s.
7. Personalize your offer. Go past the contract terms and give your offer other ways to stand out.

These are the things that I’ve really seen help buyers out in our market. It’s all about putting your best foot forward when making an offer, and this list will help you do that. If you have any questions for me in the meantime, give me a call or send me an email. I look forward to hearing from you.