You want to sell a home.  You know there are  certain practices and processes that you’ll have to do, but you have no idea where to start.  You’ve shopped around, looked at the pricing of other homes in other areas, checked your finances, and started to make a list of priorities.  However, as a first time home buyer, you’re not quite sure what’s most important or what to expect.  Here are ten things that will help get your new adventure off to the right start.

1.  S.O.S. Our number one piece of advice at The Brownstone Group (which you’ll find in almost every blog of ours) is this: the best decision you’ll ever make in the home buying/selling process is including your local real estate agent.  What might be a new experience for you is old hat to them.  They act as negotiator, confidant, lawyer, financial expert, etc.  Make sure to do the right research, though, to find the right help.  Research can include asking past clients about the agent, reading reviews, asking for references, and looking into past sold history, to name a few.  You’ll also need to keep in mind that there are different types of agents, three specifically including: the listing agent (or seller’s agent), the buyer’s agent, and the dual agent.  If someone is looking to sell, a listing agent is his or her best bet.  They are exclusive to sellers and work to garner the best price for their client.  As a buyer, a buyer’s agent will help you find the right home according to your personal preferences and finances.  A dual agent is an agent licensed to help both parties and can smooth negotiations. 

2.  Secondary help does exist.  Banks, cities, states, and other institutions can offer first-time home buyer programs to help walk you through the steps of buying a new home.  That local agent that you’ve enlisted the help of can also direct you to the right program for you.   They’ve been around the block a time or two and can properly line you up with a program that is both relevant and helpful.

3.  Be financially aware.  Sometimes, a new buyer is not aware of all the costs that go into buying a home.  For example, closing costs often fall under the radar.  To check out closing costs to keep your eye on, check out our blog Closing Costs: What’s in YOUR Closing? (http://activerain.com/blogsview/4216729/pesky-costs-what-s-in-your-closing-).  Other costs that are incurred during this period can consist of: land taxes, home owners insurance, utilities, and general home maintenance.  Budgeting for a new house should include these extrinsic costs so you know exactly what you’re getting yourself, and your wallet, into with the sale.  It’s also smart to include your personal expenses like mortgage payments, home expenses, family needs, and even your savings when budgeting.

4.  Watch out for tricky wording during the process.  For example, let’s take a look at the differences between being pre-qualified and being pre-approved.  Becoming pre-qualified to own a house by a lender is purely a process to see what your financial ability looks like.  The lender will peruse your finances and estimate what a possible home loan may cost you.  This may help with your financial planning, but keep in mind that this does not necessarily mean that you are ready to buy a house.  Becoming pre-approved, however, approves a specific mortgage amount for you.  To achieve this particular status, a lender will do an extensive background check on you, require you to fill out an official home loan application, and then offer you a specific rate.  Once all that is cleared, you can start searching for homes with an accurate budget in mind.

5.  There are always options.   When it comes to mortgages, there are usually several different types to choose from and it’s good to be aware of all choices before picking.  Research the types of mortgages available to be knowledgeable when you and your agent speak with a lender.  Typically, first-time buyers choose a 30-year fixed-rate mortgage due to its consistency and because it is easy to create a budget around.

6.   Be objective when looking at homes.  Remember that saying, “Don’t judge a book by its cover”?  This is important to keep in mind when home shopping.  An ugly facade can be a couple fixes away from the perfect home.  Make sure to be cognizant of a home’s potential and not just focus on the shallow details.  The structure of the home is also vital since that is the part of the home that will require more work to change, if it can be changed at all.  Lastly, don’t forget to check out the neighborhood.  The local community may not seem to have an obvious connection on your new home, but it’s direct nonetheless.

7.  The initial offering is imperative.  Your agent will be able to help you determine what bid you should be offering, but it doesn’t hurt to research and see what other homes in the area are going for.  Properly planning a bid can lead to a solid offer and help with future negotiations.

8.  The devil is in the details.  While you shouldn’t focus remotely on physical details, you should make sure that a proper home inspection is done.  This will ensure that the house is up to code, structurally sound, etc.  Sometimes, sellers can cut corners so it’s best to be aware of all the house’s potential and current flaws.

9.  Your new title determines your ownership.  Title insurance, then, protects your interests in the property from past events and situations beyond your control.  Some examples, pulled from My Realty Times, include:
•             Outstanding mortgages, deeds of trust or tax liens

•             Deeds, wills and trusts with legal mistakes

•             Incorrect notary acknowledgements

•             Easements, CC&R’s, and Rights of other parties

10.  Exit strategies can be useful, and sometimes necessary.  Even once you’ve found the ‘perfect’ house, offered your predetermined bid, and the seller has agreed to sell you the house, negotiations and changes can occur.  Terms may be restructured.  Price and costs may be tweaked.  It’s best to have a backup plan if things start to turn away from where you want them.  My Realty Times suggests that ” If your lender refuses your loan at the last minute, if the home inspection reveals a flaw you can’t resolve, if something happens that you can’t control then you can back out of your deal without paying penalties IF you have these contingencies written in”.  Your agent can help you plan out contingencies and prepare you for the worst, and the best!

Article Citation:  (October 8, 2013).  Cracking the home buying code: 10 things first-time buyers need to know.  My Realty Times.  Retrieved October 14, 2013 from: http://firstteamrealestate.realtytimes.com/advicefromagents1/item/26345-cracking-the-home-buying-code-10-things-first-time-buyers-need-to-know.
Picture Citation: https://www.usdaloansdirect.com/first-time-home-buyer-programs/