HOW TO FIND THE RIGHT HOME TO PURCHASE
You want to buy a home but where do you start? Finding and buying the right home can sometimes feel like a blind person trying to cross the street in rush hour traffic. It can be exciting but scary. It is truly one of the biggest investments most people will ever make. When done right it can bring happiness, security and the American dream!
People want to buy a home for different reasons; some want a safe place to raise their family near good schools and friends. Others want a second home where they can come and vacation and maybe eventually retire to. Others are looking for a great investment. But all want to feel good about the home they buy and confident they did the right thing. They don’t want to feel like they didn’t get a good deal and have a lot of undisclosed problems later on.
How does one go about finding the right home to purchase?
1) First of all, try to narrow down as much as possible what you want. What area(s) would like to have the home located. Do you want a single family home? Townhouse? Condominium? You may want to do some research on-line if you don’t already know.
2) What is your budget? To save time and energy you will need to be pre-qualified or pre-approved by your bank or finance company. By doing so, you won’t waste your time looking for properties that you can’t afford and/or won’t get loan approval on. Now days, most Sellers will not accept any offers unless the offer comes with a letter from your bank saying you are “pre-qualified” or “pre-approved.” This letter isn’t a firm commitment from a bank that you would definitely be funded and it does not lock you into any contract. All it does is reassure all concerned that you look good for getting approved for a certain amount and the contract will actually close if your offer is accepted. If you are paying all cash then instead of a “pre-approval” you would need “proof of funds” when the offer is submitted. Getting pre-qualified or pre-approved doesn’t commit you to the bank or finance person who gave it to you. A Buyer should actually have more than one finance source or bank giving them a “good faith estimate” before they sign for the loan. That way you get more assurance you are getting the best deal on your loan.
3) Search for properties to see what is out there at what prices. You can drive around, look in the paper, ask your friends, etc. But most people today go on-line at real estate sites to search. Once you have a Realtor to help you in your search, he/she can also send you properties. For an Internet search, you can just put in the city name and the words “real estate” and many real estate websites will come up. For instance, I work in and around Clearwater, Florida. Go to “Goggle” or “Bing” and put in “Clearwater Real Estate” and you will have lots of websites pop up. Click on the websites and search. The purpose of this is to give you an idea of what is available in your price range.
4) Choose a knowledgeable Realtor to help you. You want an Agent helping you that will listen to you, that has good communication skills, one that is responsive to you, who knows the market and has purchasing process knowledge. Contact a couple of real estate agents in the area you are interested in and ask questions. Find one you like and that meets your needs. Agents who represent you in the process of finding a home are called “Buyer’s Agents.” They can take you to any home listed in the MLS (Multiple Listing Service), negotiate for you and write the contract and take you through the entire process. The good news is a residential real estate agent is paid by the Seller (at least that’s the way it is in Florida).
Once you have done the above you are ready to find the right place that meets your needs. Keep in good communication with your Realtor and let them know what you like and don’t like so they know more about what you are looking for. Often time’s people don’t totally know what they want in a home. It takes looking around at several places and areas and then the Buyer finally discovers what they do really want and like. Be sure and have your Agent get what the “comps” are for the area. The “comps” are the “comparables” (similar type properties that have sold) surrounding the property you are interested in. The “comps” will show you what other comparable properties have sold for in the past 6 months. This helps determine the pricing. Once you have the property and the price you want to pay then your Agent will put in an offer to the Seller via the Seller’s Agent. Your Agent can also help negotiate the contract price and terms for you.
Once the contract is negotiated and all signed by the Buyer and the Seller you now have an “executed” contract and are off to the finish line, which is the “closing.” Between then and the day of closing you will get your home inspections done, start the financing approval (unless you are paying cash), the title company does a title search and makes sure you get a free and clear title to the property. Your Realtor will let you know all these and other time line requirements.
Then comes the happy day of closing where all the monies change hands, the title has been cleared and you get the keys. The home is now yours – Congratulations!
I hope this has been helpful. If you have any questions please feel free to email or call me: Sara Goldberg, Residential Real Estate Specialist at Dream Realty, LLC. You can email me at saragold8@verizon.net or call me 727-512-8088. Good hunting!
