Looking to buy a home? Here are six essential tips for making the process as smooth as possible.
Get your finances in order.
Start by getting a full picture of your credit. Obtain copies of your credit report. Make sure the facts are correct, and fix any problems you find. Next, find a reputable lender and get pre-approved for a loan. This will put you in a better position to make a serious offer when you do find the right house.
In this market, Sellers will not respond to offers without a letter from a reputable lender. If you don't have a relationship with a lender, your agent will be able to help you find the perfect fit.
Find a house you can afford.
Once all the excitement has died down from the momentum of the deal, and your new normal has set in, you want that new normal to be comfortable and not end up 'house broke'.
Besides your lender, there are a number of tools and calculators online that can help you understand how your income, debt, and expenses affect what you can afford.
Don’t forget, too, that there are lots of considerations beyond the sticker price, including property taxes, energy costs, etc.
Hire a local, experienced agent.
While the Internet gives buyers unprecedented access to home listings and resources, many aspects of the buying process require a level of expertise you can’t pick up from surfing the web.
That’s why you’re better off using a local, experienced agent than going it alone. If possible, recruit an exclusive buyers agent, who will have your interests at heart and can help you find off market opportunities through their networks. They can offer insight and strategies during the offering and negotiation process.
Do your homework.
Before making an offer, do some research to determine the state of the market at large. Is it more favorable for sellers or buyers?
Next, look at sales trends of similar homes in the area or neighborhood. You can lean on your agent for up to date comps and any properties currently in escrow that will impact the value of your home.
Finally, consult with your agent to come up with an offering price that’s competitive, but also realistic. Otherwise, you may end up ticking off your seller and not getting a response only to have to make another offer and start the process all over again.
Think long term.
Obviously, you shouldn’t buy unless you’re sure you’ll be staying put for at least a few years. Beyond that, you should buy in a neighborhood with good schools. Thankfully, all cities in the South Bay have award winning schools. Whether you have children or not, this will have an impact on your new home’s resale value down the line.
Be patient.
I can't stress this enough, in such a dynamic market like the South Bay there is going to be a lot of competition. Having patience and setting expectations early with the help of your broker will make this life changing experience more enjoyable.
It can be a very stressful experience but with the help and guidance of your broker, it can be a very exciting time as well!
