Buying Your First Home
Are you looking to purchase your first home in 2018? If so, here are three things you should know.
1. Hire A Realtor And Get Prequalified
The first step to purchasing a home is to hire a Realtor. Hire someone you can trust; your Realtor should always have your best interest. In addition, as the Buyer, you don't have to pay your Realtor. In a real estate transaction, the Buyer Agent gets compensated by the Seller (Brokerage Firm).
The second step is to get prequalified with a mortgage lender. This step is often overlooked by first-time homebuyers. By getting prequalified, you know exactly how much you can afford. In addition, since our housing market is still competitive, it will work to your advantage because most Sellers won't accept an offer if the Buyer isn't already prequalified.
2. It's Competitive
Our housing market is competitive; inventory is still low. A few months ago, my coworker and I listed a property and we received over 10 offers, many of them all-cash. We eventually sold the property for almost $100,000 over the list price.
On the opposite side, I recently a Buyer who submitted an offer on a 2-bed condo. We were one of many offers. My Buyer offered well above asking price and we were beat out by someone who offered even higher than us.
Knowing the market is competitive, it's important to put your "best foot forward" when you submit an offer. By doing this, you give yourself the best opportunity to get your offer selected, especially in a multi-offer situation.
3. Study And Ask Questions
For most people, buying a home is often the largest purchase of their lives. It's important you understand the home purchasing process.
Do you know what escrow is? What is title insurance? Are you familiar with our current housing market? Have you read the Purchase Contract?
Don't be afraid to ask questions to your Realtor. By being more prepared, you'll probably feel more comfortable about the entire process. Don't assume things and don't take things for granted.