Step 1 Do in-depth
needs analysis of yourself and family. Write down your needs, wants and desires
at minimum. Others factors to consider are your goals, timelines, lifestyle
etc. This will help you be more focused and if you’re working with an agent,
share this with them to help them stay focused on your objectives also.
Step 2 Consider rent
vs. buy to decide if the benefits of home ownership are great enough for you to
buy. This means to look at your desired lifestyle, goals and timelines to make
an informed decision. Using a T-Chart where you write the advantages on one
side and disadvantages on the other may be useful in your decision making.
Step 3 Home Loan
pre-approval. Get pre-approved for a home loan prior to shopping. Any top
preforming real estate agent will ask for one prior to showing you homes anyway.
This saves everyone both time and money. Having a loan pre-approval will help you focus
on a price range in which to look for homes. In addition when you write an offer, your
pre-approval will make your offer look better to the seller than an offer that
doesn’t have one. Ask your agent to show you how to calculate the monthly
payment. Generally there are four parts, Principle and interest, Home Owner’s
Insurance, Real Estate Taxes and PMI (Private Mortgage Insurance). This will
give you an estimated monthly payment required.
Step 4 Be objective.
When searching for a home, look at the market objectively. View properties with
an open mind and keep in mind that you’ll find only about 80-85% of what you’re
looking for in a home. This is where
having a feature priority sheet for your desired home will be very useful.
Step 5 Real estate
agent vs. Do it yourself. – A professional real estate agent knows the market,
how to find the best deals, help you find a lender, negotiate the offer and
deal with the paperwork and deadlines involved. If you do buy a home by
yourself, you must know how to do all this items and more expertly for yourself
I hope you find this useful in house hunting and good luck.
By Bob Weibrecht, Realtor, Coldwell Banker Gundaker 314-852-9566 / 636-461-2000 www.BobWeibrecht.com
FYI - The goal of this blog is to provide general information related to the buying and selling of residential real estate. The reader is highly encouraged to consult the services of a professional real estate agent during the transaction. This blog is not a substitute for any type of professional assistance which may be required.
