Five Tips to Buying a Home

Filed in Buying a Home on May.26, 2010

Are you thinking about buying a home but not quote sure it is the right time? There are many people in the same boat. They want to buy a home but are a bit afraid that home prices will continue to fall. For this reason, most buyers will not purchase unless they feel like they got a deal. Here are five tips to help you locate a good value:

1) Be Realistic

The real estate market is fairly efficient. All information about the market is easily available so most properties sell for close to what they are worth. Sure, as a Realtor I see some places sell for far less or more than true market value but most properties sell for about the right price. Every home buyer wants to find that fantastic steal. However, chances are that if the home you like is worth around $400,000 based on similar homes that have recently sold then you will probably have to pay around $400,000 give or take 5%.

2) Find a Good Realtor

Hiring a good Realtor won’t cost you any more than hiring a bad one. In fact, a bad one might be more expensive. Even though they might represent you, real estate agents are compensated by the seller. This may be your largest transaction ever so hire someone to help you. A Realtor can help educate you on the market by sending you what is for sale, what has sold, and homes that failed to sell.

3) Learn the market

If you have no knowledge of the real estate market how will you determine a good value? I could show you a home well market value but if you don’t know what things are selling for then you won’t recognize the value. Have your real estate agent send you homes that have recently sold in the areas that you like. You stand to get a better chance to find a deal if you are an educated buyer.

4) Preparation is crucial

Don’t wait until after you find a great house to get financing arranged. Make sure everything is prepared prior to looking for a home. Some buyers find a great opportunity but lose it because they just are not ready. You may run into competition with other buyers. Prepared buyers will win. If you are the home seller would you take an offer from Buyer 1 who is pre-approved for a mortgage and willing to close in 3 weeks or Buyer 2 who has not arranged financing and can’t close for 90 days? Lending guidelines have changed over the last few years so get that out of way before looking at home. You may be looking at $300,000 homes when you can really only afford $200,000 homes. Know this ahead of time.

5) Don’t Procrastinate

If a good deal crosses your lap and you are prepared then act on it swiftly. Good deals can be snapped up quickly. Do not let paralysis of analysis get the better of you. If you have market knowledge, are represented by a good Realtor, are prepared and have done your homework then make an offer.

Follow these five tips and you will be stand a great chance of finding a good home value. People who find great values became experts, accepted a dose of reality, hired good help, were prepared and then acted swiftly.

Marc Rasmussen sells Sarasota FL homes for sale and has a Sarasota mortgage blog.

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