Susan Fung's Blog
A first-time homebuyer often proceeds cautiously as he or she navigates the real estate market. However, if this homebuyer discovers the "perfect" home, the risk to overspend to acquire this residence may prove to be too much to resist.
It is important for a first-time homebuyer to understand what it takes to purchase a house at a price that matches or exceeds his or her expectations. That way, a homebuyer can avoid the temptation to overspend on a house and reduce the likelihood of breaking his or her homebuying budget.
Now, let's take a look at three tips that a first-time homebuyer can use to minimize the risk of overspending on a house.
1. Assess the Housing Market Closely
The housing market frequently fluctuates, and a first-time homebuyer who identifies real estate patterns and trends may be better equipped than others to pay the right price for a residence.
Having the ability to differentiate between a buyer's market and a seller's market is key. If a homebuyer understands the differences between these markets, he or she should have no trouble submitting a reasonable offer on a house based on the current housing market's conditions.
In a buyer's market, there is an abundance of available houses and a shortage of property buyers. This market favors homebuyers, and as a result, a property buyer may be better equipped than ever before to acquire a great house at an affordable price at this time.
Conversely, a seller's market favors home sellers and includes a shortage of high-quality houses and an abundance of homebuyers. In a seller's market, a homebuyer may need to submit a competitive offer on a house, or he or she likely risks losing a residence to potential rivals.
2. Get Pre-Approved for a Mortgage
Want to stick to a homebuying budget? With a mortgage in hand, a first-time homebuyer will know exactly what he or she can spend on a house and narrow a home search accordingly.
To get pre-approved for a mortgage, a homebuyer should meet with several banks and credit unions. This will allow a homebuyer to learn about all of the mortgage options that are available and choose a mortgage that corresponds to his or her finances.
Also, be sure to ask potential lenders plenty of questions about various mortgage options. By doing so, a homebuyer can boost his or her chances of making an informed mortgage decision.
3. Collaborate with a Real Estate Agent
A real estate agent can help a first-time homebuyer explore houses that fall within a specific price range, thereby reducing the risk that a property buyer will overspend on a house.
In addition, a real estate agent is happy to provide honest, unbiased homebuying recommendations. This housing market professional understands the ins and outs of purchasing a house, and as such, will do everything possible to guarantee a property buyer can acquire a terrific residence at a budget-friendly price.
Avoid the temptation to pay too much to buy your dream house – use these tips, and a first-time homebuyer can seamlessly navigate the property buying journey.
Let's face it – buying a home in a hot housing market is no easy task. For example, if you wait too long to submit an offer on a house, you risk losing this residence to a rival buyer. On the other hand, if you rush to submit a home offer at or above a seller's initial asking price, you risk spending too much to acquire your dream residence.
Clearly, there's a lot to think about as you search for a home in a hot housing market. Lucky for you, we're here to help you overcome myriad homebuying hurdles and acquire your dream residence, even in a hot housing market.
Let's take a look at three tips to help you succeed as a homebuyer in a hot housing market.
1. Narrow Your Home Search
You know that you want to live in a specific city or town, but you still are uncertain about what type of house that you want to purchase. However, if you create a list of home must-haves and wants, you can narrow your house search and speed up the homebuying process.
Once you have a homebuying checklist in hand, you should have no trouble evaluating residences in a hot housing market. Then, you can check out these houses in person and move one step closer to submitting an offer to purchase your dream house.
2. Get Pre-Approved for a Mortgage
To acquire a home in a hot housing market, you'll likely need a mortgage. Thankfully, lenders are available that can teach you everything you need to know about a wide range of mortgage options.
Lenders can explain the differences between adjustable- and fixed-rate mortgages, describe exactly how a mortgage works and much more. That way, you can assess many mortgage options and select one that matches your finances.
After you obtain a mortgage, you can enter a hot housing market with a homebuying budget. This will enable you to further accelerate your home search and ensure you can quickly submit an offer as soon as you discover your ideal residence.
3. Collaborate with a Real Estate Agent
Navigating a hot housing market sometimes can be tricky, particularly for a homebuyer who is competing against dozens of rivals. But if you hire a real estate agent, you can receive comprehensive support as you pursue a home in a hot housing market.
A real estate agent is ready to assist you in any way possible. This housing market professional will offer insights into the real estate conditions in a particular city or town and help you map out your homebuying journey accordingly.
In addition, a real estate agent understands exactly what it takes to buy a residence in a hot housing market. He or she will help you put together a competitive offer on any home, at any time. And if your offer is rejected, a real estate agent will help you regroup and reenter a hot housing market so you can find your dream home.
Ready to buy a home in a hot housing market? Use the aforementioned tips, and you can accomplish your homebuying goals faster than ever before.
If you want to buy your dream house in the near future, you likely will need to put together a competitive offer to purchase. That way, you can boost the likelihood of receiving an immediate "Yes" from a property seller after you submit your homebuying proposal.
Ultimately, it helps to know what differentiates a competitive homebuying proposal from a lowball one. If a homebuyer understands what to offer for a residence, he or she should have no trouble purchasing the right residence at the right price.
To better understand how to acquire your dream house at the lowest-possible price, let's take a look at three tips to help you determine what to offer for a residence.
1. Study the Housing Market Closely
The housing market experiences ebbs and flows. Therefore, a real estate sector that favors homebuyers one day may favor home sellers the next. And if you fail to learn about the current state of the real estate market, you may struggle to put together a competitive offer to purchase your ideal residence.
Analyze the prices of available houses in your area, the prices of recently sold houses in your preferred cities and towns and other housing market data. With this information in hand, you can find out whether you're operating in a buyer's or seller's market. Then, you can craft an offer to purchase your dream residence that accounts for the present state of the real estate market.
2. Weigh the Pros and Cons of Your Dream Home
No house is perfect, and even your dream home may have its fair share of flaws. Fortunately, a homebuyer who assesses the pros and cons of a house may be better equipped than ever before to submit a competitive offer to purchase this residence.
If you view a house multiple times, you can learn about all aspects of this home and assess any property damage. After you obtain these home insights, you can create a competitive offer to purchase that accounts for the house's current condition.
3. Collaborate with a Real Estate Agent
When it comes to purchasing a house at a price that matches your expectations, it generally is beneficial to work with a real estate agent. This housing market professional will do everything possible to help you buy your dream home at a price that fits your budget.
A real estate agent understands the ins and outs of the real estate sector and can help you map out a successful homebuying strategy. He or she first will offer insights into available homes in your preferred cities and towns. Next, when you find your dream residence, a real estate agent will help you craft a competitive homebuying proposal. And if your offer to purchase is accepted, a real estate agent will make it easy to navigate the final steps of the homebuying journey.
Ready to streamline your quest for your ideal house? Use the aforementioned tips, and you can improve your chances of acquiring your dream home at a price that you can afford.
For a first-time homebuyer, it is important to realize that a home seller's acceptance of your initial offer provides no guarantees. In fact, a homebuyer will still need to complete a home inspection before a home sale is finalized.
A home inspection is a valuable opportunity to learn about any potential issues with a house. After the inspection is finished, a homebuyer has the opportunity to submit a counter-proposal, rescind a proposal or keep his or her current offer intact.
Ultimately, hiring the right home inspector can make a world of difference for a homebuyer. With an expert home inspector at your side, a homebuyer can gain insights into a house's pros and cons and determine whether a house is a viable long-term investment.
So what does it take to employ the right home inspector? Here are three tips to help a first-time homebuyer do just that.
1. Conduct an Extensive Search
Search far and wide for a home inspector – you'll be glad you did. If you allocate the necessary time and resources to locate a skilled home inspector in your area, you can boost your chances of identifying potential home problems before you complete a home purchase.
A first-time homebuyer can begin a search for an expert home inspector online. A simple web search is sure to provide plenty of results, and a homebuyer then can perform an in-depth review of local home inspectors' credentials.
Furthermore, don't hesitate to ask family members and friends for assistance. If a loved one recently sold a house and had a great experience with a home inspector, it may be worthwhile to hire this same professional to perform your home inspection.
2. Look at a Home Inspector's Background
How many years of industry experience does a home inspector have? What are past clients saying about a home inspector? And how does a home inspector approach each job? These are some of the questions that a first-time homebuyer should consider as he or she assesses a home inspector's background.
In addition, a homebuyer can always reach out to a home inspector directly to learn more about this professional's experience. A face-to-face or phone conversation with a home inspector may require only a few minutes to complete and can help a homebuyer make an informed decision.
3. Consult with a Real Estate Agent
A real estate agent can help you discover your dream house as well as put you in touch with the top home inspectors in your area. As a result, this housing market professional will ensure you can purchase a first-rate house that matches or exceeds your expectations.
If you're uncertain about whether to hire a particular home inspector, it never hurts to consult with a real estate agent. By doing so, you can gain honest, unbiased tips to determine whether a home inspector is the right person to evaluate your residence.
Employ the best home inspector prior to completing your home purchase – use these tips, and a first-time homebuyer should have no trouble hiring a superior home inspector.
Before you commit your hard-earned money to a luxury home, make sure you know what you're purchasing. Just because a house has a high price doesn’t mean it’s truly luxury. A luxury home is built better and has more space and amenities in it than other homes. Even a home with the same number of bedrooms as other houses could be a luxury home, but the bedrooms are going to be larger, plus they will have more closet space – usually walk-in closets – and each bedroom might have its own bathroom. Other signs that a home is really a luxury home include better appliances, the best fixtures and additional amenities as space allows, such as a pool, an external game room and a larger garage.
Check the Neighborhood
If other homes in the neighborhood are in the same price range, you are likely buying a luxury home. However, be careful as some neighborhoods are just more expensive than others, but that doesn’t mean the homes are luxury homes. It’s easier to tell a luxury home that is in the suburbs because those homes usually have more space for pools and additional out-buildings.
Check the Interior
In addition to the items mentioned above, check the quality of the materials. Flooring, including carpet, should be top quality. Cabinets should be wood cabinets. If the house has crown molding, it should be good quality – and more than just a strip tacked where the wall meets the roof. Countertops should be of high quality if not marble. Look at window frames and door jambs to see how well they are put together. And the windows should be at least double pane windows, if not triple pane.
Be prepared to jump through some hoops to get financing. If the price of the home is above a certain amount, you’ll need to qualify for a jumbo loan. That amount changes depending on your location. It may also change every few years. Your real estate agent and mortgage lender will be able to tell you what the conforming loan limit is for your area.
Get it Inspected
Just because you are buying a luxury home, it doesn’t mean that it doesn’t have problems. Always hire a well-respected inspector to inspect the home before you close. The inspector will check for plumbing, electrical and structural issues, will make sure everything works properly, will let you know if he or she sees signs of wood-destroying organisms and other problems. In addition to a home inspector, always have the home inspected by a pest control company for termites and other critters that could damage the home.
Home prices are always negotiable, especially if the inspectors find problems. Ask your real estate agent for a list of comparables so you know if the property you're considering is priced appropriately.