Real Estate Articles

10 helpful tips to reduce the trauma of buying a home

A home purchase is one of the most important decisions a family makes. Right now, the limited inventory and tight competition create a tense environment for buyers, according to Denise Welsh, president of the Silicon Valley Association of Realtors. It is imperative for home buyers to do their homework before starting the pursuit of their dream home.

Welsh shares the following 10 helpful tips for home buyers:

1. Find a Realtor you can trust. It is critical that the agent you choose is both skilled and a good fit with your personality.
   "As members of the Silicon Valley Association of Realtors (SILVAR), our Realtors have a vast network of information available to help prospective buyers understand the information out there and how it applies to their personal situation," says Welsh. "There is so much information in the public domain drawn from general statistics that have no relevance to an individual purchase."
    
2. There is no "right" time to buy or sell. If you find a home that works for you, don't try to second guess the interest rates or the market. There is no time more predictable than the present and the opportunity for that property may not recur.
    
3. Asking for too many opinions can obscure reality rather than create clarity. It is natural to want assurance from people you respect; however, their opinions are subjective and drawn from their experiences, which may not apply to your current situation.
    
4. No house is ever "perfect" unless you want it to be! Focus on important characteristics that don't change - location, amenities, community, etc. Don't get sidelined by features that can be changed over time, like kitchen appliances and outdated baths. Stay focused on priorities that will matter in the next five years.
    
5. Accept that you may not get a second look. "I have had to have a long talk with buyers who want to 'start with' and caution them that, especially in multiple offer situations, they may not get a second chance," says Welsh.
    
6. Accept that the price is only one component of the offer. Terms are equally critical. Contingencies can weaken the impact of a higher price when measured against a "sure deal." The seller is usually working from a definite plan and wants assurance the contract they sign will close escrow in the designated timeframe.
    
7. Get pre-approved for the financing. This is the most critical step to a home purchase, according to Welsh. "Buyers may have great credit, no debt and good salaries, but no professional listing agent is going to accept a contract on one of their listings based on their word alone," cautions Welsh. "They need to define the terms of the financing in the first section of the contract. It is designed as such to emphasize the importance of the financial terms to the transaction."
    
8. Consider maintenance and upkeep in your purchase. A condominium purchase with homeowner's association dues may be a more practical option when compared to an older home.
    
9. Don't overlook a good buy simply because there are no other offers. This is a situation where an experienced Realtor is most valuable.
    
10. If you are going to live in the home, buy one you know you can enjoy for the next five years. Don't be shortsighted about variables that affect the market. Appreciation in home values in short time frames is not guaranteed.

"Again, I will emphasize the importance of a professional to advise the buyer, especially first-time home buyers," adds Welsh. "It's a huge investment - financially and in your lifestyle."

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.

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