First Time Home Buyers

Congratulations on the decision of becoming a homeowner! Plain and simple, owning a home can improve your quality of life, provide stability and give you a sense of control you just can't get from renting. You have a place to live when you rent, but buying and owning your home is a much more fulfilling experience.

You've picked a great time to buy your first home and we are here to assist in every step of this exciting new journey! You can enjoy peace of mind while working with our professionals, Southern Oregon's  RE/MAX Real Estate experts.

For starters, use the following guidelines to help you get the ball rolling:

• Create a Budget - Look at ALL the expenses of owning a home when you are creating your budget. Don't stop with the principal, interest, taxes and insurance. Be sure to add in utilities, cost of commuting, upgrades and maintenance. Call the utility companies that service the house you are considering and ask for an estimate of what the cost will be, whether there are any budget plans available, etc. Will the gas budget for your car go up if you are moving further away from the places you frequently visit? Budget all of these expenses and see if you can still afford the house.

• Pre-Qualify for a Loan - Being pre-qualified for a loan determines how much house you can afford. It also allows you to move more swiftly when you find the right home, especially when you aren't the only interested buyer.

• Shop for Mortgage Rates and Terms - A difference of even half a percentage point can make a huge difference in how much you pay over the life of a loan. For example, the difference in the monthly payment on a $100,000 mortgage at 5.5 percent vs. 5 percent is about $35 per month. Over 30 years, that's $12,600.

• Use a Buyer's Agent - A Buyer's Agent is legally responsible for representing the buyer's interest in a real estate transaction. Generally, the Buyer's Agent is compensated by the seller at the time you purchase a new home, so this service is generally provided to you, the buyer, at no cost.

Once you're ready to begin your search, use the following guidelines to keep you on track:

• Make a list - Home-buying is an emotional process. Ideally, you should set aside all your emotions when evaluating a house. Practically, that is impossible. Instead, make a checklist of your must-haves, nice-to-haves and other essentials. Then print copies of this checklist. Every time you visit a house, take the checklist along with you; take photographs so you can cross each item off your list. If you fall in love with the house and your checklist shows that the house has none of your must-haves, it will at least make you pause and think.

• Think long-term and think re-sale: Are you planning to have kids? Will you be taking care of elderly relatives? You might be planning to live in your first home for only a few years. In that case, who is your target audience when it comes time to sell the house? If you buy a house in a very bad school district or a house on a very busy street, when you are ready to sell the house, most families with children will be out of your list of potential buyers.

• Consider location. How far is the house from where you work? Can you handle the time/money involved in the commute? If you have young kids or are planning to have them, how far are the grandparents from the house? (They tend to be the best babysitters.) What about schools and shops?

• Learn about the neighborhood demographics: If you are buying a house in a neighborhood full of renters, it only takes a few bad renters or bad landlords to drive the neighborhood down fast. If the neighborhood is full of single people, will you be happy there if you have very young kids?

• Look beyond the staging: A well prepared home for sale is likely staged very nicely and will add to the overall appeal of the home. But look past the staging and try to see the house for what it really is. The psychology does work; staged houses look far better than houses that are still being occupied. When you are considering a house, mentally try to remove the staging. Pay more attention to the layout of the house and the structure itself. 

• Consider features that help or hurt resale value - In some areas, a swimming pool can actually detract from a home's value and makes the home harder to sell. In neighborhoods with two-car, attached garages, a single-car or detached garage may impact the home sale and future value. Your REALTOR® can point out features that hurt, as well as those which help, resale value.

• Take photos, videos and notes as you view the home - After you've looked at a few homes, the exact details of each home will likely blend together making it difficult to remember which had what feature.

• Rate the homes you view - After viewing each home, write down what you liked and didn't like. Refer to the list you created prior to your search. Develop a rating system that will help you narrow the field down to the home that's the best for you.

• Have realistic expectations - You should have high expectations at the start, but be ready to make compromises eventually. There is no such thing as the "perfect home." However, with a little give and take, you should be able to find a home that comes close to meeting all your needs and desires.

Once you've found the perfect home, be ready to make a move. With low home inventory levels, desirable homes are moving quickly and some have multiple offers. This is where is most important to rely on your real estate agent.

For Professional Service Every Time...

 Michael Lange
Broker/Realtor^®

    

 

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