Are you looking to buy a home? Let these five easy tips help make the home buying process a smooth one.
# 1 – Put your finances in order.
Start by getting a full picture of your credit and find out what payments you are comfortable with by working with a lender. Obtain copies of your credit report and make sure that everything is correct. You may have to fix an item or two before getting pre-approved to raise your credit score and credit worthiness. Getting pre-approved for a loan is absolutely essential and one of most important steps in the process. It will put you in the best position to make a serious offer when you do find the right house.
# 2 – Find a house that is affordable.
With the help of your lender you can determine what you can actually afford. A good rule of thumb is two and a half times your annual salary. There are also a number of tools and calculators online that can help you understand how your income, debt, and expenses affect what you can afford, but your lender will be able give you the most accurate picture. Remember, in addition to the house payment, there are other things to consider, including property taxes, energy costs, HOA dues, insurance, maintenance, etc.
#3 – Hire a Real Estate professional.
Though the internet gives you access to home listings and resources, many aspects of the buying process require a higher level of expertise. By hiring a real estate professional you can avoid making crucial mistakes – that may cost you far more money down the line. If possible, find an exclusive buyer agent, who will look out for your best interest. You may think that by working directly with the listing agent, builder, or FSBO (for sale by owner) seller, that you can get a better deal – but that is generally not the case – they are working for the seller and looking out for their best interest, not yours!
#4 – Do your homework.
Work with your agent before making a bid. Have them research the market. Is it more a buyer’s market or a seller’s market? Analyze the sales trends of similar homes in the area or neighborhood by looking at prices for the past few months. Then come up with an asking price that’s competitive, but also realistic. If is is a seller’s market and the home is competitively priced, avoid bidding low with the idea that the seller can always counter your offer, it might not be be the best strategy – as they might not think you are a serious buyer.
#5 – Consider the future.
Generally real estate is a long term investment. You shouldn’t buy unless you’re sure you’ll be staying put for at least a few years. An important thing to consider when buying real estate is resale value. Think about location, size, schools, neighborhood, functionality of the home, etc. – these all will have an impact when it is time to sell. Initially though, when it comes to the house itself, you should hire your own home inspector, who can point out potential problems that could require costly repairs in the future.
Want to Buy, Sell or Invest in Real Estate?
Are you interested in buying a home? Stay on top of the market! We can send you real-time listings of area homes as they come on the market – find out how. Want to find out what your home is worth? Request a FREE Market Analysis TODAY! Contact the Knowles Team TODAY at (206) 588-8343 to discuss what is happening in today’s Greater Seattle area Real Estate Market. The Knowles Team will be happy to give you a personalized Comparative Market Analysis for your home or assist you in purchasing a home.
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