Real world First Time Home Buyers Start to finish overview
First Time Home Buyers Start to Finish overview:
Here goes! This has been done in a more conservative way so many times before, I thought I would go for a more real world feel.
Not necessarily in any linear order:
1. Choose a great team! Realtor, Lender, Home Inspector, and trow in some level headed/ not too opinionated friends to bounce your favorite house ideas off of… (not your fearful, conservative parents who have not re-thunk their ideas of you since you were 12 years old. They are not usually all that helpful). However, if your parents rock (hi Alyssa!) then bring them on!
If you don’t have any idea how to put together a great team (these people are not necessarily the friends you hang out with at the bar…) don’t worry. If you find a terrific Realtor, they will have a great team already. **Check out: “Negotiation skills and real world experience are vital now” (my post from August 17th, 2009) for tips on how to choose the best Realtor for you!
2. Get your money figured out. You need a down payment (3.5% -10% will do it), earnest money to put down (like a deposit) when you make your offer, (say $2,000-5,000) and $300-500 for inspections.
3. The Seller pays for your Realtor’s fee, so don’t worry about that.
4. Find the best house you can. Notice I did not say the perfect house, as these are hard to come by under a million. Mak e a list of your dream features, and stay flexible. You will become an expert in no time with regard to the specific area and price range of homes you are looking for. Listen to advice from the experts who are helping you. They have been this every day for years and years.
5. Make sure to have an easy way to communicate back and forth without any delay. I love twitter and text, but phone and in person are best! If you can tweet your Realtor asking to have them call you right away for example… make agreements.
6. Ask lots of questions as things unfold. There are over 1,000 things that have to happen for a home purchase. Luckily, the buyers only have to do about 50-100 of those things if they are well represented.
7. go to the home inspection and remember that you have hired a professional to find as many things wrong with your dream house as possible. Almost everything can be repaired or replaced. You need to know what it will cost and as long as it is not too much, relative to the price that has been negotiated, or better yet, if the seller is paying for it, then you can keep moving forward to close. Focus on the major things: roof, siding, foundation, utilities, (not the paint color in the kitchen).
8. Ask your agent to get you what you want. Expect to get everything within reason, and don’t forget, you can always walk away. Your only liability is for your earnest money, worst case. I have never lost anyone’s earnest money and have represented almost 500 people… (OK there was one guy who changed his mind like the day before signing, but he felt that the sellers deserved some compensation).
9. Try to enjoy the process and have a good time! It is a big deal, but it is not a permanent decision. Most people stay in their house for only seven years. Also remember, you are not spending the whole amount of the purchase price, but in an up market, you do get to enjoy the increase in value for the whole amount!
10. Plan a house warming party! Do not wait until you are all settled in, cause you will forget.
11. If you feel you were well cared for and represented in a professional yet ready to go to the mat for you way by your Realtor, then recommend him/her/them to your friends and family. They depend on you for the survival of their business.
Call me if you want an extra opinion on anything. I have plenty to go around!
PS if you want a dictionary style rendition of this process, (click here) and you will link to a more conservative version…
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