Buying a home is a big decision. The financial and emotional stakes are high, but the rewards can make it all worth it.
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 is something much deeper – and better.
As a professional real estate Broker in the Brookings, Harbor and southern Oregon coast area, Michael Lange is here to guide you through the entire home buying process, from viewing houses and financing, to aggressively negotiating on your behalf to making sure the final contract is in your best interest. Michael Lange is the real estate team to use in Southern Oregon.
The Benefits of Home Ownership
The tangibles are tough to measure, but there are other benefits you can quantify:
The Importance of a Buyer’s Agent
A real estate transaction is a complex process involving stacks of paperwork and a number of outside service providers and contractors.
An experienced buyer’s agent can guide you through the process, answer your questions, and serve as your advocate. Your agent will help you find the property that fits your needs, submit offers and counteroffers, suggest a good property inspector and other professionals, and provide all sorts of relevant advice.
With a buyer’s agent, you’ll have someone on your side, looking out for your interests every step of the way.
What are the costs involved in hiring a Buyer’s Agent?
As a buyer, you don’t pay your agent directly. Instead, the agent receives an agreed-upon portion of the listing agent’s sales commission (usually about half), which is paid by the seller.
If you’re thinking this structure works against you by giving your buyer’s agent an incentive to let you pay more than you need to, consider this:
The increase in a buyer’s agent commission on, say, a $5,000 to $10,000 jump in price would be only $125 to $250. Good buyer’s agents – those who are productive and engaged in the business full time – aren’t going to risk their reputations. Your satisfaction – which can generate referrals to your friends and family – is the lifeblood of their careers. See Tips on Choosing and Working With a Realtor.
Deciding Where to Live
If you’re unfamiliar with the area where you’re moving, your buyer’s agent is an invaluable resource. He or she can offer insider knowledge on neighborhoods, schools, access to recreation and shopping districts, and the many other details on local neighborhoods and subdivisions.
It’s important to have a clear picture on the features that matter most to you in a home or location. Creating a list of “must haves” and flexible “nice-to-haves” from the start will make things a lot easier for you.
Factors to consider:
Your Buyer’s Agent can offer advice on the countless items you should consider according to your lifestyle, budget and particulars.
Anatomy of a Home Purchase
For most people, finding the right home begins with a house-hunting strategy combining personal preferences, guidance from others (including an agent), and a mix of neighborhood exploring and online search.
For some, the search takes a while; others find what they want right away. In either case, your real estate agent can be a huge resource of insight and guidance, working through issues or complications that arise along the way.
Here’s a general outline of what to expect during a home purchase, from the buyer’s perspective:
How Much House Can You Afford?
Knowing how much you can afford to pay is a crucial step in your search. Nailing down your budget early will make the overall process more focused and less stressful.
Here’s a good way to figure out how much you can afford – The 28/36 Rule
The 28/36 rule is an established benchmark used by many lenders to determine how much credit to offer you. Here’s how it works:
The “28” refers to the notion that no more than 28 percent of your gross monthly household income should go toward housing costs, which include mortgage principal, interest, taxes, and insurance.
To calculate, simply multiply your gross monthly income (amount before taxes) by .28. Use this amount as a guide for how much house you can afford.
Example: You earn an annual salary of $70,000. Divide 70,000 by 12, giving you a monthly gross income of $5,833. Multiply that by 0.28 and you’ll find you should spend no more than $1,633 each month on total housing costs.
The “36” part of the 28/36 rule refers to your overall debt, which shouldn’t exceed 36 percent of your income. This is important to consider because other high monthly debt loads – such as car and credit card payments – impact the amount you can afford to spend on housing.
For first-time home buyers, the tricky part is knowing how much to budget for taxes and insurance. An experienced real estate professional can assist you with this.
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From David Morris’ site:
Your home is probably the biggest purchase your family will ever make, and it involves many decisions that go beyond simply choosing one you like.
Michael Lange will help the home-buying process easier on you:
- You will have full access to ALL homes available on the Reno, Sparks and Incline Village market, even listings not yet on the MLS, through our professional Nevada real estate affiliations.
- David Morris Group’s expert local knowledge of the Reno, Sparks and Incline Village area is invaluable to you. But we know more than just real estate; We are also authorities when it comes to local schools, neighborhoods, the local economy and more.
- Every local real estate market has its own sales trends and opportunities to buy. This can vary greatly, even from one neighborhood to the next. We are experts in monitoring these trends and steering you into opportunities and away from traps.
- What is the true value of the house you are interested in? Is it priced too high? Is it a bargain that you should jump on? We help home buyers make the right decisions every day, and we’ll make sure that you get the best value for your money.
- Negotiating with sellers can be stressful. One of our strengths is our ability to aggressively negotiate. We will help you negotiate, so that the final contract includes the best possible terms and conditions.
- You should know absolutely everything about the house and property you are buying. A member of the David Morris Group team will view every home with you that you are interested in. Prior to closing we will make you fully aware of any and all inspections available to you.
- We want you to have confidence when signing documents. Contracts are filled with complicated terms and clauses that can greatly affect your future life in your new home. You will receive the full benefit of our real estate knowledge and experience to ensure you don’t encounter any contract hazards.
Let us represent your best interests in your search for a new home in the Reno, Sparks and Lake Tahoe area. Contact us for assistance whether you’ve just begun your search or you think you’ve found your perfect home. David Morris Group can help.
Whether it’s marketing your home to a global clientele or helping you find the home you’ve been