Thank you for interest in buying real estate.  Below are some tips to consider when you buy real estate.  By all means, please call me with your questions if the information below does not address your specific situation.

HOMEBUYERS: 10 COMMON MYTHS

  1. ALL REAL ESTATE AGENTS ARE THE SAME.
    You should choose a Realtor®, which is a real estate agent that is a member of the National Association of Realtors that you feel comfortable with.  They most also give you the attention you need and be competent in their field.
     
  2. THE LISTING AGENT ON THE “FOR SALE” SIGN WILL LOOK OUT FOR MY INTEREST AND I WILL GET A BETTER DEAL ON THE PROPERTY.
    The Listing Agent is representing the Seller and will not necessarily look out for your best interest as the Buyer.
     
  3. I CAN FIND ALL PROPERTIES FOR SALE ON MY OWN.
    All properties for sale will be advertised not will all properties have a “For Sale” sign posted.  Online services that are readily available to the general public are not always up to date.
     
  4. IF I WAIT LONG ENOUGH, I’LL FIND THE PERFECT HOME. 
    Buyer’s need to assess their needs on a want vs. need basis.  Buyer’s should make a list assessing their wants vs. needs and be willing to be flexible.
     
  5. I’LL IMPROVE THE ODDS OF FINDING THE HOUSE I WANT IS I WORK WITH MORE THAN ONE REALTOR®. 
    Buyers will do best working with one agent.   This prevents seeing the same property more than once and wasting the time of the Buyer as well as the Realtor®.
     
  6. BUYING A HOUSE IS AS SIMPLE AS AGREEING ON A PRICE AND SIGNING A FEW PAPERS. 
    Buying a house is not that simple.  There are negations to deal with such as price and contingencies (financing, home inspection, etc.) protecting you as the Buyer.
  7. FORECLOSURES ARE THE BEST DEAL.
    When purchasing a foreclosure you need to be aware of the entire real estate purchasing process. 
     
  8. GETTING A MORTGAGE SHOULD BE QUICK AND EASY.
    Relax and be prepared to answer a lot of questions.  There are a lot of different types of financing options available when purchasing a home.
     
  9. ALL MORTGAGES ARE THE SAME.
    Buyers need to work with a lender who is willing to explain and find a mortgage that is best suited for your needs.  Again relax and be patient.
     
  10. IF SOMETHING APPEARS ON THE HOME INSPECTION REPORT THE SELLER HAS TO FIX IT.
    Sometimes it is as simple as the Seller agreeing to fix everything that appears on the home inspection report.  In reality this will be another negotiation period win which your Realtor® will guide you along.

      Why should you use a real estate agent as a first time home buyer? A real estate agent has the professional knowledge and experience to find you the home of which you've always dreamed. Don't end up settling for a home you don't like. Here are some basic reasons why using a real estate agent as a first time home buyer is a good idea:

      1. Negotiation Skills - Great real estate agents know how to negotiate. They represent their clients in negotiation the home price, anything that needs to be addressed after the home inspection, closing details and the like. They have an impact on every aspect of your home buying process and using a real estate agent can mean saving thousands of dollars.
           
      2. Experience. Looking for a home and getting through the closing process the first time can be incredible intimidating. Real estate agents have the experience to guide you through this process and they have the knowledge of neighborhoods, homes or condos on the market and properties coming on the market that you should absolutely tap into.
         
      3. Resources. Finding a home inspector, a closing attorney or agent, a seller's attorney, an appraiser, a mortgage broker can all be arduous and painful. Your real estate agent will have contacts in all of these areas. You may find better mortgage rates online, but it doesn't hurt to explore all of your options and tap your real estate agent's network.

      What to look for in a mortgage program as a first time home buyer.  Here are a couple of tips and guidelines:

      1. Flexibility - Make sure you get a program that offers a monthly payment you can really afford. Be honest with your mortgage broker if your payment seems out of reach. They may be able to suggest a three or five year ARM mortgage with a lower interest rate and lower payments or an interest only loan to get you into your home without giant mortgage payments.
      2. Building Better Credit - If your credit isn't perfect, your mortgage broker can probably find you a program that will help you build you credit up. The payments may be flexible and as you make more payments on time, your interest rate may even drop!
      3. Long Term Goal - Are you planning on staying in this home forever, for three years, for five years? Communicate your goals to your lender because in situations like these they may have several mortgage options from which you can choose.

      Don't be tempted into excess when first time home buying. A real estate agent may show you a condo or home that is really more than you can afford and you need to be strong and stay within your budget. Here are a few tips on making sure you buy a home you can really afford to live in:

      1. How do you know what can you really afford? Work backwards. Look at what you are paying in rent. Can you afford to pay more? Do you need to pay less? Consider that a mortgage payment will also include taxes, then assess the monthly payment from there.
      2. Where do you want to live? You may not get exactly what you want as a first time home buyer, but you should be armed with knowledge about neighborhoods, school districts or any other factors that are important to you.
      3. Don't get in over your head. Don't get a mortgage that is too large, has a high interest rate or that has a prepayment penalty if you can avoid it. Bad mortgages can make life much more complicated. Make sure you are using a reputable mortgage broker and you should be safe.
        DISCLAIMER: All information contained herein is deemed correct, but not guaranteed. Information, water depth, and measurements need to be verified by purchaser.
        Copyright © Martha Crandall Smith 2008.