For the first-time home buyer, the home buying experience can be overwhelming, but with good research and preparation, the experience will be worthwhile, Nadr Essahboy, a Realtor with Alain Pinel Realtors, and Sharon Witte, a Realtor with Coldwell Banker, tell prospective home buyers.
Sharing home buying tips and advice on how to make a good offer, Essahboy and Witte say they believe after weighing the benefits between buying and renting, once you decide homeownership is the best decision for you, you've passed a major hurdle and it's time "to jump on the train."
"Get on the train. You just have to jump in. If you just get in, you can make it happen," Witte assures the prospective home buyer.
Essahboy reminds first-time home buyers, "At the end of the day, the buyer sets value."
1. Set a goal for homeownership.
When would you like to buy a home? Set a timeline and deadline for your search, says Essahboy.
Almost 80 percent of all home searches today begin on the Internet, which enables home buyers to search through hundreds of online listings, view virtual tours, and sort through dozens of photos and aerial shots of neighborhoods and homes. By the time you meet your Realtor, you will have set goals and parameters on the type of home, neighborhood and price you can afford.
2. Build a team.
Your team should include a Realtor whom you can trust, who is experienced and knowledgeable about the area where you would like to purchase a home. The mortgage lender and property inspector would also be part of your team.
Essahboy says a good real estate agent will listen to your wants and needs and arrange to show only those homes that fit your particular parameters.
3. Understand what you can afford.
"Set limits on the type of home you can afford according to your income and comfort zone," advises Essahboy. First-time home buyers should also remember to have extra savings, because they are likely to encounter costs for repairs and maintenance of the home they purchase.
4. Create your dream house.
Set the criteria before you start your search. What type of home would you like to buy? How many square feet would you be happy with? How many bedrooms and bathrooms should it entail? Would you be happy if the home had an eat-in kitchen, or would you like a separate dining room? Would you like a two-story home or a one-story home?
5. Educate yourself about the market.
A good and experienced Realtor can help you learn the fair market value of homes selling in your neighborhood of choice.
6. Prepare for offers in advance.
Have the foresight to assess what you might do under different scenarios, especially when facing a multiple offer situation. Be knowledgeable about the market and select a Realtor who knows the market, knows the area and understands disclosure packages, Witte says.
"Go in with your absolute best offer," Witte strongly advises. It will prevent "offer's remorse" later, when the seller accepts an offer which you really felt you could handle. She also recommends that home buyers tailor their offer to the seller's specific needs, and if possible, write a clean offer and avoid contingencies. To smoothen the transaction, she advises first-time home buyers to be pre-approved with a lender before making an offer.
"You do not get a second chance to make an offer," she reminds home buyers.
Essahboy adds, "Make sure you understand the contract."
7. Take the plunge.
Buying a home is a scary situation. It's also the most important investment of your life.
"Don't wait to build savings because the market will always outpace you. Get on the train now," Essahboy urges.
8. Be prepared for shock.
First-time homebuyers will feel the shock of purchasing their first home, but will be able to reap rewards for a lifetime, says Essahboy.
Homeowners enjoy a roof over their heads, have a long-term nest egg investment and are able to save on their taxes because of it. Studies show homeownership contributes many important social benefits by boosting the quality of living in education and civic involvement, while lowering the crime rate and welfare dependency.
9. See the transaction through.
A knowledgeable Realtor is a necessary ingredient in a successful transaction and will be able to help a first-time homebuyer through each stage of the real estate transaction, according to Essahboy.
10. When all is said and done, and you have purchased your first home, Essahboy says, "Be emotional; it's okay!"
Essahboy and Witte are members of the Silicon Valley Association of Realtors® (SILVAR), a professional trade organization of Realtors and affiliates on the Peninsula and in the South Bay. The association provides members with opportunities for community involvement and access to a network of professional resources and business contacts. Realtors must abide by a strict code of ethics and participate in additional training above and beyond state real estate license requirements. To find a Realtor, visit www.silvar.org.
The Silicon Valley Association of REALTORS® (SILVAR) is a professional trade organization representing over 4,000 REALTORS® and Affiliate members engaged in the real estate business on the Peninsula and in the South Bay. SILVAR promotes the highest ethical standards of real estate practice, serves as an advocate for homeownership and homeowners, and represents the interests of property owners in Silicon Valley.
The term "REALTOR®" is a registered collective membership mark which identifies a real estate professional who is a member of the National Association of REALTORS® and who subscribes to its strict Code of Ethics.
Variations of this article have appeared in local area newspapers.
For further information, please email or call the SILVAR office at (408) 200-0100.