5 Tips for First-Time Home Buyers
Penelope* was beyond stressed out. She finally realized that she had enough money saved to stop renting and was ready to buy her first home, but she had no idea where to start. Sound familiar?
She would stay up late searching for her ideal home online, but she really didn't know what she could afford. Every time she just wanted a little more information on a home she found herself getting four sales calls, but no real clarity on the process. Heard of this before? Penelope just wanted a list of things that she could do to get herself ready to BUY her first HOME.
We understand the frustration. It's one of the biggest decisions you will make in your life. We want to give you 5 Tips for First-Time Buyers to ease your mind so that you can proceed on your mission with confidence.
These 5 Tips are an absolute "Must Do" BEFORE you go look at your first home in person.
(1) Pick a Neighborhood - If you aren't sure where you want to live, you aren't ready to buy. Too often buyers are swayed by the allure of the physical and aesthetic value of a home and forget to make sure that they really want to live on that block or in that town. Do some town and school research on Niche and narrow down your list of neighborhoods. This way we can focus our search for you on the specific features you are looking for in a home, in the neighborhoods you WANT to live in. Then drive through the areas you like in the morning, the middle of the day and on the weekend to see what's going on in the community. Your search will be SO much easier when you narrow down your target area. If you aren't sure what you want to eat for brunch and you go to a diner with a thirteen page menu, you are going to have a really hard time choosing. The same holds true for neighborhoods . Narrow it down is your first homework assignment.
(2) Get Pre-Approved - Do you want to know why we won't show you a home if you don't have a pre-approval for a mortgage?
- If you are out looking at homes without a pre-approval, you will not be ready to buy when you find "the one." Getting a true pre-approval takes more time than a few clicks online. We want you to get a good pre-approval from a reputable lender so that when you find the home you have always wanted, we can move right forward with an offer.
- We will not submit an offer on a home for you without either a pre-approval for a mortgage or a proof of funds for a cash buy because there is no reason that a seller would accept an offer without proof that you have the money to purchase the home. Buyers without either one of these are not credible buyers to sellers.
- Imagine you are the seller. You will be one day! Do you want agents privately showing your home to people who are not qualified to purchase it? NO.
Our friend's at Money.com have put together this great resource for the " Best Mortgage Rates of 2020" , you can find that here !
(3) Choose a Buyer's Agent - Stop clicking CONTACT AGENT on Zillow and leaving it up to an advertising algorithm to find you an agent to show you a home. Do the work before you start looking and find an agent who you think will do a great job for you. P.S. - That is never the agent that tells you they are the best! The best agents let you find that out on your own. Read their bio and read their reviews to see what they did for other clients. If you don't pick an agent of your own, you will have to retell your story to every real estate agent you meet. How many times have you done this so far? You are likely about to spend the most money on any single thing in your whole life. Protect that future investment by only working with an agent that you trust who gets you and understands exactly what you are looking for. Read our blog on questions to ask to find the best agent for you here.
(4) Stop Looking at Fixer-Uppers - I know, I know - they are attractive online because they are cheaper, but they are cheaper because you have to put money into fixing them up! Do you really want to balance the joy of moving into your first home with the angst of remodeling your first kitchen? Ask yourself these questions before you think about buying a fixer upper:
- Have you ever done a renovation, of any kind, on a home? If no, STOP looking at fixer-uppers. If yes, proceed to step 2.
- Do you understand the cost involved in kitchen and bathroom renovations? If no, STOP looking at fixer-uppers. If yes, proceed to step 3.
- Have you calculated your offer price plus your renovation costs? If yes, double your renovation costs. If no, STOP looking at fixer-uppers.
(5) Understand the Process - Don't start learning the steps when you are ready to make an offer. Get INFORMED early and ask your agent to go over with you how it all goes. Then, when it is time to make an offer, you won't be overwhelmed by the unknown. At least know what these terms mean:
- Attorney review
- Inspection period
- Mortgage contingency
- Closing costs
Home ownership is a wonderful thing, but the journey to get there can be stressful and frightening. Please refer to these 5 Tips for First-Time Buyers to stay ahead of the curve and fully engaged in the process. A great way to get started is to set up a free, no obligation, Buyer's Strategy Session with us so we can tell you all about what to expect.
In your quest for home ownership, you should never feel pressured nor intimidated into making a decision. However, the reason you should be vetting your buyer specialist so heavily up front is because when it comes time, you are going to need to TRUST him or her to properly advise you on your home inspection, what to ask for and what not to, questions to ask your attorney, building the proper buying timeline, effective negotiating strategies and so much more. Build a relationship and you will begin to build your future.
Now it's time to celebrate all of your newfound knowledge! THANKS for making it to the bottom! We appreciate you taking time out of your day to get more informed about the home buying process. In 1597 Sir Francis Bacon was credited with saying, "Knowledge is power." When it comes to buying your first home, no truer words have ever been spoken. Get ahead of the curve, find an agent you TRUST and stay informed. Soon you will be sitting in your new living room, waxing poetic about how simple the whole process was.**
*Penelope is not a real person. Actually, she is. Penelope is a conglomeration of all of the first-time buyers we have ever worked with. You are not alone. Everyone's journey to a first home starts with wild uncertainty.
**Note - Be prepared for hiccups. An easy process is one where everyone stays calm and finds solutions because no home buying process is foolproof.
P.S. - One of the best ways to learn about an agent is to read their reviews on Zillow. Social proof is an important aspect of any business and real estate is no different.
The Gosselin Group is a team designed to enhance your experience as a client. Our goal at The Gosselin Group is to continually modernize and optimize the real estate process to provide a streamlined client experience from initial contact to closing, and beyond.
Together our mission is to make meaningful connections and build trust with you, and the communities we work in. Combined we have closed 175 transactions, totaling $70+ million in business and are dedicated to seizing the opportunity ahead to continue to become the premier real estate team in New Jersey.
The Gosselin Group is committed to giving back through our partnership with Giveback Homes. A portion of the proceeds from every closing goes to build a home for a family in need all across the world. The link above details our 2018 build project for a single-family house in Newark, NJ. We love helping our clients, but in doing so, we also help change lives of those less fortunate.
"Home is the nicest word there is." - Laura Ingalls Wilder