The purchase of a home is a big step, and you’ll want to proceed with caution so you end up with a great place at a fair price. In order to have the best possible outcome, you should be knowledgeable about your credit, how much you can afford, your needs and wants, your future goals and the value of real estate in your area.
Furthermore, your real estate agent should have access to sales statistics, which is crucial information to evaluate in the home buying process (agents good at analyzing sales patterns – and conveying observations to their clients – are typically more successful). I have told my colleagues there’s nothing nerdy about mining for statistical housing data when dealing with customer patterns – it’s a great money maker! The same is true for home buyers doing proper housing market research – it’s a great way to save money and have your dollar go further. The more you know, the better off you’ll be when choosing your next piece of real estate.
Here are 10 tips you should carefully consider as a real estate buyer.
1.) Check your credit, and clean up any problems.
Before you apply for a loan or start shopping for houses, you need to make sure your credit is good. Pull your credit reports from all three of the major bureaus, and look at them carefully. If you see anything negative on them, or find anything that’s not yours, you’ll want to take care of that. You can dispute an account if it’s not yours or incorrect. Negatives you may be able to improve by paying off old debts. Make sure you consistently pay all your current bills on time, every time.
2.) Get pre-approved for your loan, not just pre-qualifed.
Talk to a loan officer before you talk to a real estate agent. Your bank is a good place to start, but other banks and credit unions may also be able to help you. Don’t just get a pre-qualified letter, because they’re very basic and don’t really dig into your finances. Instead, you want to get pre-approved. This will mean proving your income and letting the lender examine your credit report, but it’s much better to know what you can realistically be approved for before you start shopping for houses.
3.) Have your own representation when making an offer, by getting a buyer’s agent.
The real estate agent who has the house listed for sale is working for the seller. While you can buy the house from that agent, it’s better for you to have your own representation. Seek out a buyer’s agent, so you have an agent you know is truly on your side. You’ll not only get good representation, but peace of mind, as well.
4.) Do your own research by looking online and visiting open houses.
Don’t just rely on everything any real estate agent tells you. Agents are often very busy, and they can’t be everywhere all the time. By looking online and visiting open houses, you’ll get a much better idea of what’s available in your price range. You’ll also find out more of what you like and don’t like, so you can give your agent more specifics to work with. That helps to streamline the process.
5.) Have your agent show you at least 10 homes before making a decision.
There are plenty of homes in the Oahu real estate market. Don’t pick the first one you look at, even if you really love it. Go to at least 10 homes with your agent, so you have some good comparisons you can make between the homes you’ve seen. By touring a number of homes, you’ll be in a much better position to decide which one you really want to buy.
6.) Be decisive when the right place becomes available.
When a home appears on the market and you know it’s a good option for you. Go see it right away. If you’ve already seen a lot of other homes and haven’t settled on one yet, it’s only because the right home hasn’t been available. When it does appear, move fast. If you don’t, it’s very possible someone else will buy it first and you’ll miss out on what could have been a great house for you.
7.) Check out the neighborhood at different times of the day.
Location is one of the most important things when it comes to real estate. Even if you know the city where you’re buying very well, you probably aren’t familiar with each and every neighborhood – especially at every time of day. Investigate the neighborhood you’re thinking about buying in during the morning and afternoon. It’s also good to go there late at night, and check it out on a weekend evening when the noise level may be higher.
8.) Don’t get discouraged in a competitive market.
Real estate markets can be very competitive, depending on the location and the price range. If you lose out on a great house, or even several great houses, don’t give up. There’s something even better out there for you, and you’ll get it when the time is right. Have faith and patience, and don’t let yourself get discouraged. Your perfect home is out there.
9.) Get the home inspected by someone you trust.
Home inspections are very important. Even if you don’t see any obvious problems, there may be issues with things like electrical or plumbing systems. That doesn’t mean these issues would stop you from buying the home, but you should know about them. They can be deal-breakers in some cases, and are also generally good negotiating tools if you’re going to offer a lower price for the home. Hire a good home inspector you feel comfortable with. It’s well worth the cost to have peace of mind in the home you choose to buy.
10.) Be prepared for home ownership.
Make sure you’re really ready for home ownership. It can be expensive. Taxes and insurance add up, and even the expenses and maintenance costs can take you by surprise if you’re used to renting. The more you learn about the true costs of ownership before you decide to buy, the more prepared you’ll be when unexpected expenses do come your way. By being as prepared as possible before you make a home purchase, you’ll be able to make the best choice for your dreams and goals surrounding owning your own home.