It is a buyer's market, right? Should be easy to find your dream home? Not necessarily. In the Twin Cities real estate market homes that are priced right and in nice shape are selling quickly and often have more than one offer. What can you do to make the process as smooth as possible?
1. Know what you want. What's your personality? Do you like to entertain? Have family over a lot? Mind taking the stairs? Want an attached garage? What sort of yard do you want? Big? Small? Do you like to garden? Need room for that? If you want a fixer do you really have the ability and time to fix things or will you need to hire someone? Get a good idea of what you want and what your priorities are so you can give this information to your Realtor. What do you HAVE to have? What are you willing to compromise? I had clients who had two children and had to have three bedrooms and preferred two bathrooms but they could compromise on the bathrooms. It was also very important to them to have a lot of land. I soon learned that the land was a MUST HAVE. If you are clear about your wants and needs you will save time in the long run.
2. Take Care of Your Finances. Generally you can afford a mortgage about 2-3 times your gross income but you need to be sure that you will be comfortable with the payment. And a lender will look at your entire financial picture. What is your income? What bills do you currently have such as a car payment and credit cards and student loans? You will want to investigate financing. Talk to a lender who will go over all the options and explain these to you. You can then get preapproved for a mortgage. When you are ready to make an offer you will be able to include the preapproval so the seller is assured that you will not back out of the transaction because you cannot qualify for a loan.
3. Do Some Research. You may know the neighborhood you want to live in or you may have an idea. Drive around the neighborhood. Visit retailers and businesses in the neighborhood to learn if it is a place you want to live. Do you have children? Research the schools your children will be attending. Property taxes can vary from county to county. Be aware of those expenses. Your Realtor can help with that. Write down the amenities you want in a house and in a neighborhood. Once you have your list, mark the items that are most important to you. Be aware that you may change your mind during your search. Keep your list handy and update it.
4. Develop a Timeline for Your Move. Is there anything on your credit that needs to be cleared up before you can qualify for a mortgage? Are you leasing and will you have to pay extra to be released from your lease if you find a home quickly? Is your landlord asking you to move? Are you adding to your family and need the space? I have clients who are expecting their first child in March and want to be in their new home before the baby comes. They will have to begin their search now to allow for closing time. Do you own a home and have to sell prior to purchasing a new home?
5. Think About Your Long Term Plans. How long do you plan to live in this home? If you plan to buy a starter home and move up in a few years, your expectations will be different than if you plan to live in the home for 10-15 years. Do you plan to start a family and a few years down the road and stay in the home? The number of bedrooms may change. Make sure that your list of priorities fits the amount of time you plan to stay in your home.
6. Work With a Realtor. People you trust will be able to give you names of Realtors they have worked with. Interview agents to help you decide who to work with. You will want to be confident that the agent will return your phone calls, will answer questions you have, will give you the information you want and will offer advice. An agent can help you with your research by sending you listings of homes that fit your search parameters, giving you neighborhood information and letting you know prices of homes that have sold in the neighborhoods you are searching in. Make sure your personalities mesh also.
7. Be Realistic. While looking at homes, it is easy to be blinded by great staging or, on the other end of the spectrum, lots of clutter. Be sure to notice the things about the house that you can change such as kitchen cabinets, paint, appliances and the things about the house that you can't change such as being on a busy street, location next to a railroad track, school district, etc. Use that priority list you made.
8. Don't Ask for Lots of Opinions. Lots of your friends will offer advice on your home purchase and tell you their experiences. It is natural to ask for advice when making a major decision but remember that this is your home and you will be the ones living in it. Stay true to your list of wants and needs. Only you know your finances and the amount you can afford and only you know your lifestyle and the type of home you want.
Happy Home Searching!
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