9 Expert-Approved Tips for Smart Home Buying
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Buying a home can be a daunting task, but knowing the right strategies can save you money and stress. Here are some expert tips to help you navigate the home-buying process successfully.
1. Research Agents Before Choosing One
Choosing the right real estate agent is crucial for finding your dream home and negotiating the best price. Carlos Miramontez, vice president of mortgage lending at a California credit union, emphasizes the importance of doing your homework.
“Doing your research upfront can help you make a wise decision and choose a well-qualified real estate agent who’s right for your needs,” he advises. “Enjoy a cup of coffee with a few agents before deciding who to partner with.”
When interviewing potential agents, consider asking:
- How often will you send me listings?
- Will you show me homes when I’m available (e.g., after work or on weekends)?
- How long have you worked in real estate?
- What type of property do you specialize in?
- Have you worked with clients in my desired area and price range?
2. Search Social Media for Local Real Estate Groups
Social media can be a valuable tool for connecting with real estate agents in unfamiliar areas. Brady Hanna, president of Mill Creek Home Buyers, suggests searching for local real estate groups on platforms like Facebook.
“Join several groups and post your criteria for buying a house,” he says. “You’d be surprised at how many off-market properties you might find.”
3. Add a Personal Touch When There Are Multiple Offers
To stand out among potential buyers, consider sending a personal note to the seller. Share your story and explain why you would be the best buyer for their home.
“A heartfelt letter can make a difference,” Hanna notes. “I’ve seen sellers choose buyers based on personal notes when offers were similar.”
4. Don’t Automatically Settle on City Living
While city life offers convenience, it may not always be the best financial choice. Shane Lee, a data analyst for RealtyHop, suggests exploring suburban properties.
“You might find better deals in the suburbs, and even a fixer-upper can become your dream home with the money you save,” he advises.
5. Run Through All Costs Before Starting the Home-Buying Process
Many first-time buyers focus solely on the down payment, but there are other costs to consider. Lee recommends budgeting for closing costs and additional fees early on.
“Start saving for all mortgage-related payments, legal fees, and broker commissions,” he says. “Hidden costs like property taxes and insurance premiums can add up quickly.”
6. Investigate the HOA to Make Sure You’re Compatible
Homeowners Associations (HOAs) can enhance community living but may also impose restrictions. Robert Nordlund, CEO of Association Reserves, advises buyers to vet the HOA before making an offer.
“Attend a board meeting and review the association’s budget and rules,” he suggests. “Understanding the HOA’s dynamics is crucial for your long-term investment.”
7. Buy a Home Below Your Means
Real estate expert Julie Gurner recommends purchasing a home that costs 75% or less of your approved budget. This allows for savings and reduces financial stress.
“Look for outdated homes in desirable neighborhoods,” she says. “With some effort, you can transform them into your dream home.”
8. Invest Remotely in High-Yielding Real Estate Markets
For buyers in expensive coastal cities, investing in out-of-state properties can yield higher returns. Zach Evanish from Roofstock highlights cities like Memphis and Indianapolis as great options.
“Remote investments can provide stable rental income and help you build wealth over time,” he explains.
9. Ask for Reductions After Inspection
Utilize home inspections to negotiate price reductions. Lucas Machado, president of House Heroes, advises buyers to request lower prices based on inspection findings.
“Sellers often underestimate their property’s condition,” he notes. “Don’t hesitate to ask for a reduction; it’s a common practice.”
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Wise Bread Picks
Buying a home can be a daunting task, but knowing the right strategies can save you money and stress. Here are some expert tips to help you navigate the home-buying process successfully.
1. Research Agents Before Choosing One
Choosing the right real estate agent is crucial for finding your dream home and negotiating the best price. Carlos Miramontez, vice president of mortgage lending at a California credit union, emphasizes the importance of doing your homework.
“Doing your research upfront can help you make a wise decision and choose a well-qualified real estate agent who’s right for your needs,” he advises. “Enjoy a cup of coffee with a few agents before deciding who to partner with.”
When interviewing potential agents, consider asking:
- How often will you send me listings?
- Will you show me homes when I’m available (e.g., after work or on weekends)?
- How long have you worked in real estate?
- What type of property do you specialize in?
- Have you worked with clients in my desired area and price range?
2. Search Social Media for Local Real Estate Groups
Social media can be a valuable tool for connecting with real estate agents in unfamiliar areas. Brady Hanna, president of Mill Creek Home Buyers, suggests searching for local real estate groups on platforms like Facebook.
“Join several groups and post your criteria for buying a house,” he says. “You’d be surprised at how many off-market properties you might find.”
3. Add a Personal Touch When There Are Multiple Offers
To stand out among potential buyers, consider sending a personal note to the seller. Share your story and explain why you would be the best buyer for their home.
“A heartfelt letter can make a difference,” Hanna notes. “I’ve seen sellers choose buyers based on personal notes when offers were similar.”
4. Don’t Automatically Settle on City Living
While city life offers convenience, it may not always be the best financial choice. Shane Lee, a data analyst for RealtyHop, suggests exploring suburban properties.
“You might find better deals in the suburbs, and even a fixer-upper can become your dream home with the money you save,” he advises.
5. Run Through All Costs Before Starting the Home-Buying Process
Many first-time buyers focus solely on the down payment, but there are other costs to consider. Lee recommends budgeting for closing costs and additional fees early on.
“Start saving for all mortgage-related payments, legal fees, and broker commissions,” he says. “Hidden costs like property taxes and insurance premiums can add up quickly.”
6. Investigate the HOA to Make Sure You’re Compatible
Homeowners Associations (HOAs) can enhance community living but may also impose restrictions. Robert Nordlund, CEO of Association Reserves, advises buyers to vet the HOA before making an offer.
“Attend a board meeting and review the association’s budget and rules,” he suggests. “Understanding the HOA’s dynamics is crucial for your long-term investment.”
7. Buy a Home Below Your Means
Real estate expert Julie Gurner recommends purchasing a home that costs 75% or less of your approved budget. This allows for savings and reduces financial stress.
“Look for outdated homes in desirable neighborhoods,” she says. “With some effort, you can transform them into your dream home.”
8. Invest Remotely in High-Yielding Real Estate Markets
For buyers in expensive coastal cities, investing in out-of-state properties can yield higher returns. Zach Evanish from Roofstock highlights cities like Memphis and Indianapolis as great options.
“Remote investments can provide stable rental income and help you build wealth over time,” he explains.
9. Ask for Reductions After Inspection
Utilize home inspections to negotiate price reductions. Lucas Machado, president of House Heroes, advises buyers to request lower prices based on inspection findings.
“Sellers often underestimate their property’s condition,” he notes. “Don’t hesitate to ask for a reduction; it’s a common practice.”
Like this article? Pin it!
