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Lesson 2: Finding Your First
Home
Let’s Go Shopping!
You know that you want to buy a
home and how much you can afford. Now you have to get out there and find one!
But, before hitting the streets, you will need to make a few key
decisions.
What
type of home do you want?
Options include single-family homes,
condominiums, co-ops and townhouses, depending on your price range and your need
for space and property.
Do you
prefer a newly built home or a resale home?
You may want the
warranties and efficient construction of a newly built home, as well as your
ability to customize it for the first time. On the other hand, you may find a
good deal on a resale home, which may need a little elbow grease. The choice is
up to you.
What are
your wants and needs in a house?
How many bedrooms? Garage?
Basement? What kind of schools are in the area? By checking off the specific
features of each home you visit, you'll find it easier to compare your choices
when it's time to make your final decision.
Will you
use a real estate agent, or shop on your own?
Many homebuyers
choose to work with a real estate agent or broker to help them find a home.
Since finding a home, negotiating the contract and closing the deal is such an
important transaction, an experienced agent can provide guidance and help to
avoid potential pitfalls.
An agent should have a vast
knowledge of the real estate market, price trends and neighborhood conditions.
The agent will help you shop for your home, tour properties and be your
negotiator if bargaining over price is necessary.
If you decide to use a real estate
agent, you should take great care in selecting one to meet your needs. You may
want to ask family, friends and co-workers for referrals to agents that they
recommend.
Pre-Qualification - An Important Step
Before you go looking for a home,
you may want to consider getting pre-qualified to reassure yourself that you
will be financially able to get a mortgage. Getting pre-qualified can give you a
significant advantage while you’re shopping for a home. If you are working with
a real estate agent, it lets them know you are a serious buyer.
You can simply click
here
or call 888-929-4666 or 651-ASK-4MOM (651-275-4666).
Making an Offer
When you become more certain about
the type of house and neighborhood you want, you may want to make an offer.
Before submitting your offer, consider the following:
- The asking price versus the market
value of the house.
- A comparative price analysis of
neighboring homes.
- The home’s condition and potential
renovations or repairs
- Your price range
- Negotiable items with the seller
such as closing costs, repair work, closing dates, etc.
While bargaining, keep in mind
some signs of an overpriced house. With the correct negotiating you may be able
to get a lower price:
- On the market more than four
months. If no buyers are interested, the house may cost too much.
- Series of cost reductions.
Indicates that the seller has already cut the price, and may be willing to go
lower.
- Your comparative price analysis is
drastically different from the selling price. Don’t pay more than your neighbor
for the same amount of house.
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1
Lesson 3 > |
It's an investment that you own and is yours to
sell.
