Tuesday, December 27, 2011

– Home buying 101-



Get your priorities in order!!


            Man I hated that phrase when I was young!  However, if you are in the stages of purchasing your first home, it’s sound advice.  Many first time homebuyers go into the purchase process without laying out a predetermined game plan of their true wants and needs. And with the amount of inventory on the market today, that’s like giving your kids the keys to Toys R Us and saying “pick one”.  Without a sound “plan of attack” in place you may be quickly overwhelmed and end up making bad choices; like picking a Yo-Yo instead of a trampoline.  


First things First

            Right off the bat you need to decide what your #1 priority is in a home and why.  It can range from school system to the type of kitchen installed.  This will give you and your agent a base to start with.  These parameters can obviously change at anytime, but it’s the best way to get started.  With this base created we can start our home search with defined parameters, reducing the overwhelming effect today’s inventory levels can have on you.  This will also allow you to quickly get on the road and into some homes instead of sitting on Realtor.com for months.

Patience is a Virtue

            Now that we “have our priorities in order DAD” we need to give ourselves time.  The best way to do this is to remain calm…. Just chillax!  Patience is the name of the game when purchasing in this market – we are no longer in the “bidding war” days of homes being sold within hours.  This market is full of inventory and you need sufficient time to do your due diligence.   Give yourself 3-9 months depending on your situation to search and understand the market.  I always remind my buyers that you won’t know a great deal when you see it if you have had nothing to compare it to.  So be sure that you view enough property to really understand fair market value for your particular wants and needs.  r

Do you really need that?

            I often see buyer frustration when wants and needs are to “tight”.  What I mean by tight is that the buyers may be unwilling to budge a bit from their wants and needs.   We need to keep in mind that the average homeowner lives in their first home for only 8 years.   You may be able to “scrap” or hold off on a few of your original parameters in trade of something else.  For example, if you can part with a pool, you can usually get more space or an upgraded home for a similar price.  If you have small children that wont be attending school for 5 years or more, it may be worth it to get a larger/nicer home in a lower rated school district.   Rationalizing these wants and needs in an honest format is a great way to acquire the best home available in your budget.


            Keep these tips in mind, remember to stay patient and I assure you….YOUR PERSITANCE WILL PAY OFF!!

No comments:

Post a Comment