6 tips to buy a house right now
1. Get pre-approved for a loan.
Most sellers require a pre-approval letter along with their written offer. You should have it ready so that when you find the right home there will be no delay in submitting your offer. There is a lot of confusion about pre-approved vs. Pre-qualified… even real estate agents sometimes use the terms interchangeably! But pre-approval is the real deal. With a pre-approval, the lender has executed your credit and will typically have completed a loan application and provided documentation to the lender, who will then tell you the amount for which you have been approved. With prequalification, you will usually have verbally provided some information to the lender about your credit, income, and assets, and the lender will give you an approximate amount for which you are likely to be approved. Sometimes a prequalification letter will suffice; The main thing is to talk to a lender before you start looking for houses.
2. Decide if short sales and bank properties are for you.
Don’t waste time searching for properties that don’t meet your home buying needs. Each of these types of sales has its own unique challenges for a homebuyer, so it’s important to learn the basics of each and decide if any fit your game plan. For example, if you need to move into a new home within a relatively short period of time, a short sale may not work for you, as it often takes many months to complete. And bank properties often need work, which can increase the overall cost or make it more difficult to obtain certain types of loans. If you can be patient with a short sale, or have the ability and/or resources to fix up a bank-owned home, these could be great avenues to explore. If not, tell your Realtor® to skip short sales and bank-owned homes.
3. Check out the neighborhoods in advance.
One of the best things you can do at the beginning of your home buying project is to take a weekend or two and browse various areas and subdivisions, especially if you are new to the area. Tell your real estate agent which neighborhoods are most attractive to you; it will really help you understand the type of house you want and your taste in houses. Some buyers look for newer homes in areas with many families and children; others prefer the quieter, “mature” neighborhoods. Fortunately, there is something for everyone, and a real estate agent who is highly experienced and knowledgeable about the local area will be a great help in finding those hidden gem neighborhoods.
4. Take time to search for a house.
Don’t plan to go to the exhibits alone on the weekend; in this market, that is not a winning strategy. In reality, there is a shortage of affordable homes in good condition, and those that are also in a desirable location sell almost immediately. If you really want to find your dream home, clear the covers and prepare to jump in when your real estate agent tells you that a new listing just came on the market that fits your requirements. And most importantly, be prepared to make an offer if it’s the right house. It could easily be gone in a day or two.
5. Don’t waste time on houses that are already sold!
Do you spend your free time house hunting on Zillow, Realtor.com or Trulia? Or driving and calling by houses with signs out front? So, you’ve probably already learned that a lot of those houses, which appear to be for sale, aren’t actually available. Quite often they are “under contract,” which simply means that another buyer made an offer that was accepted by the seller. These are often still listed as available on public real estate websites, but in most cases, the sale will close within a few weeks. Work with a Realtor® who will set up a custom search for you so you can focus on only those homes that meet your criteria and are still available.
6. And of course, the most important thing is to find a truly professional and customer-oriented real estate agent!
A great agent will make your home buying experience smoother and more enjoyable. Get referrals from friends or family who have recently had a good home buying experience, or call or email some local agents. See which ones are responsive and return your call or email right away, and get an idea of how professional and knowledgeable they are about the local area and current market conditions. Also see their commitment to their clients in terms of training beyond that required to obtain a real estate license. The Realtors® who work diligently on behalf of their clients have often invested in advanced training and designations such as:
- GRI – Graduate Realtor Institute, only 19% of Realtors®
- ABR – Accredited Buyer’s Representative, only 15% Realtors®
- CRS – Certified Residential Specialist, only 10% of Realtors®
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We hope these tips are helpful and we wish you success in your home search!
