Congratulations! You are ready to buy your first home. This is a huge step and we are so excited for you. Real estate is a great investment in your future. Think of it this way: instead of paying someone else every month and having that money disappear forever, you are now putting money towards something that will almost guarantee you money back one day. Not only this, but you can paint the walls, hang up things and make the place fully and truly yours.
Being a first time buyer on the market is incredibly exciting, but it can also be a little daunting. Our goal in today’s blog post is to answer some commonly asked questions first time buyers have in the hopes that you will learn something and gain a little peace of mind. Remember that here at Team Ken Richter we love partnering with all types of individuals, first time buyers or not. Please get in touch with us, we would love to work with you to make this process go as smoothly as possible.
Here are 3 commonly asked questions first time buyers have and information to answer them. Remember, our experience is your advantage.
Q: What do we need to do first? What is the first step to take?
First things first, make sure this is a commitment you can follow through on. Buying a home is an exciting, huge deal. Make sure you are absolutely positive you’re buying in the city you want to be living in for the next 10+ years, that you will qualify for a mortgage, that you will be able to handle all the costs that come with moving into a new home (upfront deposit, moving costs, insurance, utilities, relocation fees, etc.) and most of all, make sure that you give yourself time. The worst possible thing you could do is rush into something without carefully making sure it will work in the long run.
Q: If a home is being represented by a real estate agent, does that mean I don’t need to have a professional do a home inspection?
No! Regardless of whether the home you are interested in is being represented by someone reputable or not, you always need to have your own home evaluation done. First of all, hire a professional who can give you the nitty-gritty details on the condition of the structure and what maintenance or renovations need to be done (if any) upon purchase. Second, have a CMA (a Comparative Market Analysis) done on the home if possible. This will tell you if the asking price is fair and what the pros and cons of the property are so you can make an informed decision.
Q: How do we make an offer on a home once we have found one we love?
First decide how much you want to bid. The property may be overvalued or undervalued. For example, if the property is overvalued and there is not a competitive market, you may be able to bid less. Use this simple equation: asking price + market conditions = bid. Next, a statement needs to be drawn up outlining your bid. Chances are the seller will want some things negotiated, so expect some back and forth. Remember to be smart and confident, but not overly aggressive or you may lose out. Next, a deposit should be made to a third party professional. The deposit size will depend on the home, but be prepared to make that payment. With the deposit, a contract should be made between you and the seller. There are a lot of little loopholes sellers can add that can hurt you, so we strongly recommend having a professional draft the contract and look through it before anything is signed. For more information, check out this great article on Money Sense.
Best of luck and as we mentioned, please contact us for more information about what services we can offer you.
Your Real Estate Professional,