Buying A Home

• Understand Home Buying
• Commit to the Process
• Have Fun and Together - Define the Lifestyle Unique to You.
• Time to Postpone that Major Purchase you've been Pondering . . .
• Maintain Employment/Employer Consistency
• Rush Decisions may be Detrimental
• Be Prepared to Ignore the Visuals
• What Should I Look for When Walking Through a Home?
• Newer Homes versus Older Homes: Which is Better?
• Stay Calm and Positive
• Buyers Remorse: What Have We Done?
• Remain in Close Contact with your Realtor®.

 

Understand Home Buying

Before you begin this exciting journey, it is a good idea to endeavor to gain a base understanding of the home buying process. Immediate family, relatives, friends or coworkers who have recently undergone a home buying process may be able to shed some light and offer some general advice to you to help establish you in your search.

Not long ago, consumers like yourselves, had very little access to information about market trends, homes on the market, neighborhood statistics and the home-buying process. Today however, all this information and more is available on the world-wide web. So have fun surfing. Enjoy the education along the way and most importantly, empower yourself in your home buying journey!

Commit to the Process

Buying a home is perhaps the largest financial and emotional purchase in the lives of most people. Having said that, the informed home buyer;

• Makes a conscious decision and is committed to purchasing a home.
• Takes the time to prepare and outline a personal financial blueprint and addresses all financing issues first.
• Allows adequate time to look.
• Maintains balance and keeps all emotions in check
• Listens to and takes into consideration the advice of the financing and real estate professionals they are working with.

 

Have Fun and Together - Define the Lifestyle Unique to You.

Your home should fit your unique lifestyle with spaces and features that appeal to the whole family.

Together, establish a set of "Needs" (minimum requirements) and a set of "Wants" (wish list). Make this a family event and have fun with it! Minimum requirements are things that a house must have for you to even consider it, while "Wants" or wish list items cover things that you'd like to have but aren't necessarily essential.

It's easy to mistake the interpretation of a "want" (wish list) as a "need" (minimum requirement). This would result in houses being dismissed that fit your needs (minimum requirements) perfectly while you are searching for the one that has your wants (wish list items). This is not to say that you cannot have what you desire in your home -- just that you must be able to differentiate between what you truly need (minimum requirements) and what you would like to have or want (wish list).

Only by working closely with the right Realtor® and inspecting numerous homes will you be able to find the right match for you and your family. After all, the following are things you must consider.

• Where do you want to live?
• Is this the right town or neighborhood?
• Is traffic volume (noise, your children's safety) to be a major consideration?
• Does the location offer all or most of the conveniences we need? (Commuting, Schools, Parks, Shopping, Daycare)
• May we have a future requirement for an In-Law suite?
• Medical and emergency care. What facilities are available?
• Enough square footage for comfortable living.
• Enough bedrooms to accommodate your family.
• Adequate number of bathrooms.
• Eat-in kitchen. Style of kitchen.
• Garage or basement for storage needs.
• Lot size to accommodate children's play area.
• Adaptation for Handicapped.
• Proximity to a specific school.
• Do you need to be on a school bus route? Even if you've been told bussing is available, never assume your new house is a on a permanent route. Call the school board to confirm permanent bus routes.
• All living areas located on single floor for health reasons.

 

The goal is to put the emphasis on finding a home that includes all of your needs (minimum requirements) and as many of your wants (wish list items) as is practical - yet still remains within your budget. Once you have established a clear picture of what your home will need to have, the next step, actually looking for a home, will be more pleasurable!

Once you have created your Needs List (minimum requirements) and your Wish List (wants and nice-to-haves), photocopy it and share it with your Realtor®. By pre-determination of your buying power, your needs, and wants, your Realtor® now has all the information they need to find the house that best fits your family's parameters. With an organized house buying plan, you can minimize a great deal of the emotional impact and your chances of a stress-free experience are considerably better.

Time to Postpone that Major Purchase you've been Pondering …

Ahhh yes, you have just returned from your pre-approval meeting with your financial lender. You're quite happy knowing how much you can safely afford for a mortgage. Your thoughts begin to wander to the possibility of purchasing a new car or perhaps new furniture for your new home. But wait! - if you are depending on a mortgage to move in, you'd best wait until after closing to buy any kind of major purchase.

In simple terms, any increase in your debt to income ratio reduces the amount of monthly income available for your mortgage payment.

If you tack on a higher payment, you will alter the debt ratio the Lender used to initially calculate your pre-approved mortgage. This means, you will no longer have access to the amount of money specified in your pre-approval. Your major purchase, albeit a beaut, may have just forced you to reassess your target home for a smaller or less expensive house. Cash you say? Using cash for a major purchase could also create a problem, since banks consider cash reserves when approving mortgages. If you must make a major purchase before closing, the best advice would be to talk to your Lender beforehand.

Maintain Employment/Employer Consistency

Lenders love a consistent job history. They aren't usually too concerned if you change jobs within the same line of work however, it's better to stay put until the house is yours.

Rush Decisions may be Detrimental

Especially if you are being guided by your emotions. The selection of a home that fits your lifestyle today and into the future, takes time, takes thought and thorough analysis. With your Realtor®, you should carefully evaluate the pros and cons of each house you like. Take a notepad with you and take notes of the highlights you enjoyed in each home you looked at. When you get home, review your notes and compare it against your Must Have List and Wish List. Hold onto your notes for a good month after you have purchased your home. These lists will not only help you stay on track throughout your buying experience, they will also help assure and re-assure you that you have made the right choice.

Be Prepared to Ignore the Visuals

Sometimes this can be difficult however we must look at the potential of a house rather than judge the house/property from what you see in front of you.

Establish your priorities and decide what can be sacrificed. It's most important that the floor plan/flow of the house and the number of bedrooms fit your needs and that all major systems are functional versus your dislike for the burnt orange shag carpet or bland landscaping. Those types of cosmetic shortcomings can be easily remedied once you buy the house and are able to shower it with your own creative flair!

What Should I Look for When Walking Through a Home?

Exercise due diligence to make sure that you and your Realtor® thoroughly investigate each house and compare the home to your minimum requirements and wish list. While touring the home, create a list of questions the house needs to satisfy to warrant further consideration. Allow room on your page so that when you are touring the home, you can jot down items specific to that house. This written journal/list has the benefit of allowing you to record your initial impressions for future review. Take into account the following and add more as you see fit.

• Is there enough room for both the present and the future?
• Is the house structurally sound?
• Do the mechanical systems and appliances work?
• Is the yard big enough?
• Will your furniture fit in the space?
• Is there enough storage space? (Bring a tape measure to better answer these questions.)
• Does anything need to repaired or replaced?
• Imagine the house in good weather and bad, and in each season. Will you be happy with it year-round?

 

Take your time and think carefully about each house you see. Ask your Realtor® to point out the pros and cons of each home from a professional standpoint and write these down on your paper.

Newer Homes versus Older Homes: Which is Better?

There isn't a definitive answer to this question - it's a matter of personal preference. It is important that you look at and consider each home for its own unique and individual characteristics. Both new and older homes offer distinct advantages, depending upon your unique taste and lifestyle.

Newer homes tend to use more contemporary architecture and current systems. They generally have more space in the rooms where todays families do their living, like a family room or great room. They are usually easier to maintain, and may be more energy-efficient. However, many homes built years ago offer more total space for the money, as well as larger yards. Generally, older homes may be in more established neighborhoods and offer more ambiance. Taxes on some older homes may also be lower. Some people are charmed by the elegance of an older home but shy away because they're concerned about potential maintenance costs. Any apprehension regarding future maintenance costs can easily be alleviated by having an Inspection clause inserted in your Offer To Purchase and have a certified Inspector examine the house. Any areas of concern will clearly be detailed in the inspection report.

Stay Calm and Positive

Maintain a level of calm during the entire home buying process, especially during and after a home inspection (if required). Be realistic. No home is perfect, especially the older homes. It's not unusual for new owners to tackle some of the minor home repairs themselves. Don't let a seller's refusal to undertake a small repair destroy the deal on a home you truly love. Alternatively, don't fall head-over-heels in love with the house, that no matter what needs to be done, you'll buy it anyways . . . unless you're sure you can handle it both emotionally and financially. It's up to you to decide what type of repairs you can realistically handle and then you must stick with that decision.

Buyers Remorse: What Have We Done?

The best way to control buyers remorse is by recognizing it exists, knowing it is perfectly normal, knowing it is not specific to first time buyers and to have a plan in place should anxiety and stress set in one night.

As you have already met with your Lender and your current financial position has been assessed, you are secure in knowing there are no financial concerns regarding the purchase of a house up to your pre-approved limit.

Your Realtor®, together with your input, was the person instrumental in helping you understand the process from beginning to end comfortably enough that you felt secure in proceeding with them.

The combination of these two professionals is your strategy for ensuring you are making a good practical and financial decision for your family.

Remain in Close Contact with your Realtor®.

This is extremely important if you're in a strong seller's market in which homes that are priced right go fast. You want a good Realtor® who will alert you of new listings and who will show you the houses as soon as they're listed.

Best of all . . . when you purchase your home through RE/MAX Encore Realty, you not only receive Daphne's commitment to outstanding service, Daphne will make a contribution on behalf of the sale of the home to the Children's Miracle Network hospital aligned with your area.