February
15
15
Are You Ready To Buy A Home?
Many homebuyers think that there are just three steps to buying a home. Look at houses, find a house you like, and buy it!
While the process boils down to those essential outcomes, buying a home involves quite a few more steps. The transaction can be overwhelming and complex, but if you have an advance understanding of what's involved, buying a home can be less stressful.
The very first and best step you can take? Educating yourself on the homebuying process.
The next best step? Working with a Peabody & Smith REALTOR® who can assist you step by step throughout the process is important as well.
If you are moving to a different area, it will be important to research the communities in the area that you are moving to. If you have children, you may want to contact the schools and find out about the programs that they offer. Find out which communities fit your wants and needs and make sure to visit them.
We have some resources that will help you research communities.
New Hampshire Communities Our community profiles include a brief overview of home types and community amenities. You can see a map with active listings, too. Plus there's a link to see all home for sale in that community. It's a one-stop shopping hub.
As a buyer, you'll compete with other buyers in the market. Doing a bit of market research will help you negotiate the best price on the home that you find to purchase. Your REALTOR® is the most valuable source of help for this step. It works like this:
Once you and the seller have agreed on price and terms of the sale, you will need to conduct your home inspections.
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1. Line Up Financing
Once you've made a decision to buy a home, first and foremost you need to address your financial situation. Make an appointment with a lender. They can help determine how much of a loan you can afford, what types of loans you may qualify for, and can get you a pre-approval to get you started on your search for a home. Getting pre-approved for a mortgage allows you to set a budget and zero in on only those homes that you can afford to purchase.2. Determine What You Need and Want in a Home
Now that you know how much home you can afford, you should sit down and identify your actual needs in a home. If you are purchasing with a spouse or partner each of you should separately sit down and make a list of all "must haves." Compare your lists, discuss the differences, and come up with a joint list that you can both live with.
3. Research Communities
If you are moving to a different area, it will be important to research the communities in the area that you are moving to. If you have children, you may want to contact the schools and find out about the programs that they offer. Find out which communities fit your wants and needs and make sure to visit them.
We have some resources that will help you research communities.
New Hampshire Communities Our community profiles include a brief overview of home types and community amenities. You can see a map with active listings, too. Plus there's a link to see all home for sale in that community. It's a one-stop shopping hub.
4. Target Your Property Type
You will also want to be sure you know what property types you are interested in. Property listings derived from the MLS, or multiple listing services, are generally categorized into the following types:- Single-family
- Condo
- Townhouse
- Multi-family
5. Do Some Market Research
As a buyer, you'll compete with other buyers in the market. Doing a bit of market research will help you negotiate the best price on the home that you find to purchase. Your REALTOR® is the most valuable source of help for this step. It works like this:
- Look at properties that fit the description of the property you have identified as what you are looking for.
- Identify those that have sold, those that have expired, and those that are actively on the market.
- This data will tell you what other buyers have been willing to pay for similar homes (the solds), what prices other buyers have rejected (the expired), and what is currently available on the market. This is an important step in understanding and being able to negotiate a price on the home that you find to purchase.
6. Start Looking at Homes
Now you are ready to start looking. Starting your search online will help you to identify properties that may fit your criteria and eliminate those that don't.
7. Schedule Home Viewings
Once you have picked out a list of properties that you think are appropriate, it's time to make appointments to see them. Your REALTOR® will make the appointments for you and show you all listings no matter who the listing agency may be.8. Evaluate Each Property
After each showing, you should take the time to evaluate the property that you have just viewed. When you are in the process of looking, especially if you have scheduled several showings on the same day, one home can blend into the next. Be sure to take the time after looking to make notes. Write down the positives and the negatives. Bring your smartphone and take pictures so the property is clear in your mind. Once you start looking at properties you may need to reevaluate your wants and needs.9. Decide Which Home Best Meets Your Needs
The next step is potentially the hardest one of all—DECIDE which home meets your needs.10. Make an Offer
Next, your REALTOR® will help you to write up an offer and negotiate the price with the seller. Be prepared for the possibility of a counter offer, or counter offers.
11. Conduct Inspections
Once you and the seller have agreed on price and terms of the sale, you will need to conduct your home inspections.
12. Follow Up on Inspections
Your inspections may be satisfactory or they may reveal a defect or defects that you had not anticipated. Should something unexpected arise from the inspection, you may then need to negotiate with the seller on the repairs of those conditions. Just a word of caution, not all sellers are prepared or are willing to pay for repairs.13. Review and Follow Contingencies
You must make sure that all contingencies, or stipulations, of your contract have been met. There are some very strict deadlines on a Purchase and Sale Contract. Make sure that you follow those dates. Once all contingencies have been met, it is time to arrange for the move.14. Close on the Property
The final act is to close the deal and move in!Don't Miss These Key Steps
The biggest mistake homebuyers make is skipping Steps 1 through 5. Knowing how much you can afford and having a good idea of what you are looking for will help eliminate wasted time looking at homes that you cannot afford. If you are looking in an unrealistic price range, the houses you actually can afford may then seem completely inadequate after looking at the higher priced homes, and you may feel let down and frustrated. Set your expectations realistically by doing your homework ahead of time! Buying a home, especially your first home should be a fun and rewarding experience! Be prepared and enjoy!
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