While learning all about parallelograms and the capital of Côte d’Ivoire was important, homebuying wasn’t a topic taught or impressed upon us in school – but it should’ve been – so most first-time homebuyers end up learning as they go their first time around.
But it stands to reason that since buying a home or investing in real estate is one of the most expensive and life-altering decisions most people make, it should come with an instruction manual. But much like parenting, it unfortunately doesn’t – but thankfully, this list is a good start!
This list will help familiarize you with important concepts and practices that can help you make sound buying decisions – and avoid costly mistakes.
So here are nine best practices and tips – and one BONUS! – for first-time homebuyers.
- Educate Yourself On The Homebuying Process. Buying a house is a complicated process – from submitting an offer, to qualifying for a mortgage, to securing homeowners insurance, to closing on the property –
so it proves critical to be aware of the major milestones and key players involved in your transaction.
- Develop A Real Estate Plan. People often spend more time planning out their weekly meals than their real estate goals – but buying property impacts countless aspects of your future. So take the time to learn about loan programs, neighborhoods, and your full range of housing options.
- Get Organized. Having a high-level strategy gives you direction and helps to keep you focused on your goals. Write down what you want to accomplish, the steps it will take to get there, and come up with a realistic timeline. And whenever possible, take notes so that the houses you see don’t start to blend together.
- Hire Experts. Build a strong, experienced team of experts to guide and advocate on your behalf. Think of it like this: Many real estate transactions can have over 50 people involved – administrative personnel, real estate agents, loan officers, attorneys, escrow and title agents, and more – so make sure you choose the best.
- Explore Housing Options. While a single-family home is still the be-all-end-all real estate American dream, it’s not your only option. Consider other housing types, like a condominium, townhouse or multi-family property. Because without weighing their pros and cons, you may miss an incredible opportunity.
- Don’t Be Distracted By Shiny Objects. Often, one of the biggest mistakes homebuyers make is getting distracted by appliances, finishes and paint colors. But just … don’t. Don’t buy a house because it has nice barn doors; you can add or change these things later – and easily. See the forest, not the trees.
- Get Real About Your Finances. Keeping up with the Joneses is part and parcel of the American Dream. So it’s not uncommon for first-time homebuyers to stretch beyond their financial means in order to purchase a home. Don’t set yourself up for failure and stress by making yourself house poor unnecessarily.
- Focus On Value. We all know that real estate is about ‘Location. Location. Location.’ And that’s still true. But finding good value for your investment is just as important – overall square footage, the land the house sits on, the neighborhood, roofing, plumbing, electrical, and more.
- Advocate For Yourself. As a buyer – as in most of life, really – you are your own best advocate and you are ultimately responsible for the decisions you make. Do your homework and legwork, and take advantage of your due diligence period to ensure you make the best real estate decisions.
BONUS 10. Remember: You Are In Control. In a crazy-hot market like this, it’s easy to get carried away by bidding wars and spending more than you can afford. Be aggressive and proactive – but keep your head. Don’t allow yourself to get swept up in the mania.
The bottom line is that having a plan, familiarizing yourself with the process, building a good team, scrutinizing your finances, and advocating for yourself will always yield the best results.
The experts at DeLeon Sheffield Company are ready, willing and able to be your team of experts (See also: #4), guiding you through your first homebuying experience, regardless of market conditions, every step of the way.
Because at DeLeon Sheffield Company, ‘We’re More Than Realty; We’re Family.’
