From the curb to the inspection, here are helpful house hunting tips for first time home buyers.
1. Get That Pre-Approved Letter
Source: Flickr user This Year’s Love
Many first-time home buyers assume that you find the house you want and then you get the loan. But most real estate agents won’t take you on as a client without having a letter confirming your pre-qualification and loan amount in hand. And sellers will definitely not consider your bid without one.Many lenders will get you pre-qualified online, and you’ll be able to print out copies of your letter to show to your real estate agent and the seller’s agent.
2. Find The Right Agent
Source: Flickr user Single Rent Immobillaria
Many people have questioned the necessity of an agent while house hunting and now even more so with the internet providing buyers with so much instant-access to nationwide listings and photos. However, a good real estate agent will make a massive difference in your home buying experience.A good real estate agent is one who has your best interests at heart and will work to get you in the house that you’re hoping for at a reasonable price. A good agent will also help guide you through the process, knowing that as a first-time home buyer, you will have a lot of questions.
If you don’t feel like your agent is representing you well, then find another one. Don’t make the mistake of scoping out a listing you found on your own search and calling the number yourself or showing up unannounced. Not only is it unsafe but it is also unprofessional and lets the seller and their agent know that you’re new to the game, giving you much less bargaining leverage.
3. Be Aware Of The Market Trends
Source: Florida Real Estate News
The problem with the real estate market is that they can change at the drop of a hat. This is where the internet will become invaluable resource for researching market values and current trends, providing crucial information that you will use to help decide whether or not to move forward with a particular property. Things to look for include:Interest Rates. Strike while the iron is hot with historically low interest rates. It could make a difference of tens of thousands of dollars for you over the course of the loan.
Understanding Loans. Loans aren’t just a one-size-fits-all process, and at any given time, certain loans are written more on average than others. Never take on a loan without understanding what you’re getting into.
Real Estate Trends. Know what the houses you are looking for are going for on the market. Don’t just look in one neighborhood. Often, you’ll find you can save as much as 10 percent on a home price just by moving one or two neighborhoods over.
Neighborhood Trends. Is the neighborhood you’re looking in white hot? Or is it on a decline? There are many factors that go into understanding neighborhood trends, but one of the easiest ways to tell is to look at the real estate properties on the market. If houses are flying off the market within days or weeks of being listed and are selling at top price, then you know the neighborhood is hot. Alternately, if there are a lot of for sale signs up in the neighborhood and none seem to be moving, or moving very slowly, then it could be a sign that the neighborhood is on the decline. Ideally, you’ll do best to find a neighborhood in between.
4. Look For Up-And-Coming Neighborhoods
Source: Manyunk.com Facebook
These “in-between” neighborhoods are the ones where you will get the most return on your investment because real estate is essentially a game of supply and demand. You’ll get in cheaper than the most in-demand neighborhoods.As long as that neighborhood continues to grow, the demand will turn it into a popular neighborhood, sending your property values through the roof. Be warned, though, there are no guarantees that these neighborhoods will be the next Brooklyn story. Markets can and do change. That’s why it’s important to do your homework and be as confident as possible in every last detail about the neighborhood. Indicators of a great neighborhood include:
A growing number of good restaurants and bars
Unique architecture
A growing arts district
Close proximity or easy access to a major city
Good nightlife
Low crime rates
Good schools
5. Prioritize Location
Source: Flickr user Intel Press Free
Location really is everything in real estate. As this is your first home, you might be disheartened to learn that you can only afford a small townhome in a major city instead of the single-family home you wanted in the adjacent affluent suburb. Don’t let that lure you to a less-affluent suburb so that you can still have the big home that you wanted. The price tags of these neighborhoods can be hard to resist, especially if the neighborhood is safe. Just as there are no guarantees that up-and-coming neighborhoods will improve, there are definitely no guarantees that these outskirt neighborhoods will either.Taking the smaller townhome in a popular neighborhood provides much more of a probability that you will be able to sell with a profit in a few years. Building equity and making a profit into your home provides you the ability to move onto the bigger home you wanted in a few years. Always think of your home as an investment and the location is the most important part of that equation. A shack in an affluent neighborhood will sell faster than a mansion in a less-desirable area.
6. Be Realistic And Patient
Source: Flickr user Gemma Bardsley
Most first-time home buyers begin the process with big hopes and lots of dreams. But a few steps in and they find themselves disheartened and in over their heads. Yes, the reality is that most people have to scale back their expectations for their first home. Sometimes that means trading in the hardwood floors you always wanted for aging carpet or two bathrooms for one to be able to get into the neighborhood that you want. This is not the end of the world, and will be worth it in the long run.However, don’t settle, either. As long as you are being reasonable in what you are looking for, then you shouldn’t feel pressured to buy something that you don’t want. If you know that homes within your budget are available with two bathrooms and hardwood floors in that neighborhood but haven’t been able to find any yourself, keep looking. Sometimes buyers just hit cold streaks. Stay patient and the right home will surface.
4. Look For Up-And-Coming Neighborhoods
Source: Manyunk.com Facebook
These “in-between” neighborhoods are the ones where you will get the most return on your investment because real estate is essentially a game of supply and demand. You’ll get in cheaper than the most in-demand neighborhoods.As long as that neighborhood continues to grow, the demand will turn it into a popular neighborhood, sending your property values through the roof. Be warned, though, there are no guarantees that these neighborhoods will be the next Brooklyn story. Markets can and do change. That’s why it’s important to do your homework and be as confident as possible in every last detail about the neighborhood. Indicators of a great neighborhood include:
A growing number of good restaurants and bars
Unique architecture
A growing arts district
Close proximity or easy access to a major city
Good nightlife
Low crime rates
Good schools
5. Prioritize Location
Source: Flickr user Intel Press Free
Location really is everything in real estate. As this is your first home, you might be disheartened to learn that you can only afford a small townhome in a major city instead of the single-family home you wanted in the adjacent affluent suburb. Don’t let that lure you to a less-affluent suburb so that you can still have the big home that you wanted. The price tags of these neighborhoods can be hard to resist, especially if the neighborhood is safe. Just as there are no guarantees that up-and-coming neighborhoods will improve, there are definitely no guarantees that these outskirt neighborhoods will either.Taking the smaller townhome in a popular neighborhood provides much more of a probability that you will be able to sell with a profit in a few years. Building equity and making a profit into your home provides you the ability to move onto the bigger home you wanted in a few years. Always think of your home as an investment and the location is the most important part of that equation. A shack in an affluent neighborhood will sell faster than a mansion in a less-desirable area.
6. Be Realistic And Patient
Source: Flickr user Gemma Bardsley
Most first-time home buyers begin the process with big hopes and lots of dreams. But a few steps in and they find themselves disheartened and in over their heads. Yes, the reality is that most people have to scale back their expectations for their first home. Sometimes that means trading in the hardwood floors you always wanted for aging carpet or two bathrooms for one to be able to get into the neighborhood that you want. This is not the end of the world, and will be worth it in the long run.However, don’t settle, either. As long as you are being reasonable in what you are looking for, then you shouldn’t feel pressured to buy something that you don’t want. If you know that homes within your budget are available with two bathrooms and hardwood floors in that neighborhood but haven’t been able to find any yourself, keep looking. Sometimes buyers just hit cold streaks. Stay patient and the right home will surface.
7. Learn How To See Beyond Cosmetic Issues
Source: Flickr user Katy Brady
It’s easy to be turned off by a house that boasts mustard yellow walls and brown shag carpeting. Some people even have trouble seeing past the current owner’s furniture. But these are all easily changeable problems. That’s why they’re called cosmetic issues.You can change these yourself or hire someone to do them for relatively cheap in the grand scheme of things. Turning down the home you can afford that has the space you desire in the neighborhood that you want just because you don’t like the décor is a huge mistake. A house with good bones and some ugly paint beats a well decorated home that has a cracked foundation any day.
8. Look And Then Look Again
Source: Flickr user Chris Potter
Now that you’re able to see past the paint color, you need to look a little closer. Very often, new home owners are so overwhelmed, exhausted, excited, or all of the above, that they don’t really look at everything there is to see.Always keep in mind that you’re viewing a new home with first-time eyes. Once you’re moved in, there will be things that surface that you never even noticed. Hopefully they will be positive things. But many times, they’re nuisances and can be a source of buyer’s remorse for many. Keep a checklist on hand in every house you see that includes things like:
Check the water pressure. Turn the faucets and shower on and off.
Check all closets. Is there enough room in each closet? Are there enough closets including a coat closet and space for linens and toiletries?
Check all cabinets. Will there be enough room for all of your kitchen supplies, mixers, pots, pans, and doo-dads?
Check all windows. Make sure that all of the windows open and close.
Check the attic, basement, and crawl space. Is the attic missing insulation which could save big on heating and cooling bills? Is the crawl space easily accessible for home inspection? Is the basement finished? Are there signs of water?
Check the doorbell. Does the doorbell or home security system work properly?
These are mostly all things that are easily fixed or improved but should always be considered upon viewing a home. Some people feel strange opening up a stranger’s closets and cabinets, but this is the house you are considering buying. It’s not a small decision, and the current home owners have had ample time to prepare for your arrival and search.
9. Keep An Eye Out For Any Hidden Variables
Source: Flickr user Andy Piper
Closing on a home doesn’t mean the bills stop there. Beyond your mortgage, there will undoubtedly be unanticipated expenses and variables that you’re faced with. Prepare yourself as much as possible by asking your agent and the seller about following:Utilities. What are the average heating and cooling costs for the home?
HOA. Is the home under a Homeowner’s Association contract? Ask to see the contract and review all of the rules and regulations before agreeing to buy the home.
Your Surroundings. What are the neighbors like? Are there strange things about the neighborhood you should know about? Drive past the home multiple times during different times of the day to get a feel for your street and neighbors.
Flood Insurance. Some areas require flood insurance. You will be told this and mandated to get it as a part of your mortgages. However, some places that are slightly less flood-prone only suggest flood insurance but don’t mandate it. Inquire about any flood issues with the house, the street, and what flood insurance will cost.
10. Consider The Curb Appeal
A home with good curb appeal is ideal. But what does the exterior and landscaping of the home entail, exactly? The curb appeal of the home should reflect your lifestyle and finances. If you can afford to put a lot of time and money into the upkeep of a very detailed exterior and like the look of a lot of flowers, gardens, and well-trimmed hedges, that’s great. But if you don’t have time or extra money for these things, reconsider what you might be committing to.11. Don’t Skip The Home Inspection
Once you’ve gotten past the actual house hunt and you’ve found the house that you want to move forward with, there’s still a huge step to take before you sign the contract and begin the process of the loan: the home inspection.
This will be the final decision-maker for you in determining whether or not the house is right for you. The inspector will be able to check all of the things that are beyond your scope. In other words–the important stuff! From the foundation to the electrical system, checking that the house is up to the township and state coding, mold, the condition of the roof… These are just a few things that will have to pass in order for you to move in.
Sometimes people decide to skip this step in order to speed up the process, but don’t make that mistake. If the home passes inspection, you can move forward with ease and peace of mind. If the inspection uncovers problems, however, you could be saving thousands or even tens of thousands of dollars in costly and frustrating repairs, so save yourself the hassle.
I am available to help you with your home purchase! Please contact me to set up a consultation!
Nakia Evans, GRI, REALTOR
This will be the final decision-maker for you in determining whether or not the house is right for you. The inspector will be able to check all of the things that are beyond your scope. In other words–the important stuff! From the foundation to the electrical system, checking that the house is up to the township and state coding, mold, the condition of the roof… These are just a few things that will have to pass in order for you to move in.
Sometimes people decide to skip this step in order to speed up the process, but don’t make that mistake. If the home passes inspection, you can move forward with ease and peace of mind. If the inspection uncovers problems, however, you could be saving thousands or even tens of thousands of dollars in costly and frustrating repairs, so save yourself the hassle.
I am available to help you with your home purchase! Please contact me to set up a consultation!
Associate Broker
Coldwell Banker Residential Brokerage
22 W. Padonia Avenue, Ste. A-100, Timonium, MD 21093
Office phone: 410.252.2111
Direct phone: 443-864-1358
Email: nakiaevans@cbintouch.com
Coldwell Banker and the Coldwell Banker Logo are registered service marks of Coldwell Banker Real Estate LLC. Coldwell Banker Residential Brokerage is owned by a subsidiary of NRT LLC. If you have a brokerage relationship with another agency, this is not intended as a solicitation.
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