1. Know Your Budget: The first step in home-buying is understanding your financial capabilities. Before browsing for houses, take the time to get pre-approved for a mortgage. You will have a clear idea of what you can afford, and it’s a clear sign that you’re serious about submitting an offer.
“In a super competitive market, you can take this one step further and go through the underwriting process with your lender. This will allow you to be fully prepared, so you will not need any days to obtain buyer approval on the Third-Party Financing Addendum. This strengthens your offer immensely and shows that you are a serious buyer with solid financing.” – Louise Boll, Dave Perry-Miller Real Estate
2. Location, Location, Location: It's an old saying, but it's true. The value of your home is greatly influenced by its location. Consider proximity to schools, workplaces, shopping centers, and other amenities. Also, consider the potential growth and development of the area.
“DFW is growing so rapidly. Ten years ago, Prosper felt like a single stop sign. Now, it’s an international golf destination. Bustling neighborhoods will always be great locations, but looking at where the city is expanding will find you investment opportunities.” - Marmie Leech, Compass Real Estate
3. Consider Your Future Needs: Consider what you need in a home now and your future needs. Are you planning to start a family? Do you have aging parents who might need to move in with you? Make sure the home you choose can accommodate your future needs.
“The way you live in your home can change year to year or season to season. Within your budget, find a home that will flex with your needs. Don’t be afraid to plan to invest in your home, either. Adding a bathroom five years into owning your house is a great way to increase the value of your property while making your life easier.” - Marmie Leech, Compass Real Estate
4. Hire a Realtor: A realtor can provide valuable guidance and expertise throughout home-buying. They can help you find the right home, negotiate the best price, and navigate the complex paperwork. Plus, a realtor has insider knowledge about the local market and can provide insights you might not find online.
“Hiring a realtor is key to making a great investment in real estate. My expertise in neighborhoods, pricing, cost of repairs, and lending options can save you tens to hundreds of thousands of dollars when you buy a home” - Marmie Leech, Compass Real Estate
5. Get a Home Inspection: Before you finalize your purchase, always get a home inspection. A professional inspector will check for structural issues, plumbing and electrical problems, and other potential issues that might not be visible to the untrained eye. This can save you from costly repairs down the line.
“There is no such thing as a perfect home...brand new construction or 100-years-old...there will be problems that arise during the inspection. Your realtor will help you understand the ones that are important and costly, the ones that are easily repaired by a handyman in an afternoon, and the ones that you can do yourself. They will also be able to negotiate on your behalf for the larger items. In addition, and perhaps equally as important, they will have a list of vetted vendors that are able to make all repairs, taking the stress off your plate.” – Louise Boll, Dave Perry-Miller Real Estate
6. Understand the Total Cost: The purchase price is just the beginning. Don't forget to factor in other costs, such as property taxes, homeowners insurance, utility bills, and maintenance costs. Make sure you can comfortably afford all these expenses before committing.
“I always remind clients that, more likely than not, the monthly mortgage payment of PITI (principal, interest, taxes, and insurance) will go up through the years as you own the home. This is due to rising property tax values and insurance premiums. It is important to give yourself some wiggle room when committing to a monthly mortgage payment. Don’t overextend yourself on a house payment.” - Marmie Leech, Compass Real Estate
7. Be Patient: Buying a home is a big decision and shouldn't be rushed. Take your time to explore different options, and don't feel pressured to make a quick decision. It's better to wait for the right home than to settle for something less than ideal.
8. Negotiate: Don't be afraid to negotiate the price. If the home inspection reveals issues that need fixing, or if the home has been on the market for a while, the seller might be willing to lower the price. Your realtor can guide you in this process.
“A key step before making an offer on a home is evaluating pricing. As a Realtor, I look for comparable sold homes with similar specs like the number of beds/baths/garage, age of construction, level of updates, lot size, and location and evaluate pricing based on those comps. We can then come in with a strategic offer with comps to back up our offer price.” - Marmie Leech, Compass Real Estate
9. Think Long-Term: Buying a home is a long-term investment. Consider how the house will hold its value over time. Does the neighborhood have growth potential? Is the home in good condition, or will it require many repairs? These factors can affect the home's resale value in the future.
“When looking at homes, visualize them without the furniture and decor. Look more closely at the layout and size of the rooms. If the home is structurally solid but needs cosmetic repairs such as paint and new floors, invest in those simple updates that are the most budget-friendly and make the biggest impact. They can also easily be done in a few days after closing when the house is empty.” – Louise Boll, Dave Perry-Miller Real Estate
10. Embrace the Process: Buying a home can be stressful, but it's also an exciting journey. Embrace the process and enjoy the experience. Remember, this is a big step towards achieving your dream of homeownership. Stay positive and keep your eyes on the prize.
“Lean on your Realtor for any and all questions! They have done this a lot and know exactly how to alleviate a lot of your stress!” – Louise Boll, Dave Perry-Miller Real Estate
WHWM is here to help you identify your priorities, develop a plan, and adjust along the way. Putting your trust in WHWM means working with WHWM’s Founder and President, Stephen Bodwell, a CFP® professional committed to helping you achieve your financial goals and big dreams. Take the next step towards getting what you want in life. Schedule your complimentary, no-obligation 30-minute consultation today.
Walnut Hill Wealth Management, LLC (“WHWM”) is a registered investment advisor offering advisory services in the State of Texas and in other jurisdictions where exempt. The information provided is as of the date indicated and is subject to change.
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