Steps to buying a home for first-time homebuyers
Wednesday, April 17, 2019
Buying a home is a complicated process, especially for first-time homebuyers. Fortunately, buyers have access to a lot of information on the internet, but this could be a disadvantage, too, according to Alan Barbic, president of the Silicon Valley Association of Realtors.
"We are inundated with so much information from the internet and apps for anything we want to do," says Barbic. "Buying a home is one of the most important decisions and biggest investment you can make. You need to be careful about the information you receive from the internet and your network. Make sure you work with experts you trust."
Below is a summary of steps to buying your first home from houselogic, the home information site published by the National Association of Realtors.
- Do your homework. Make a list of "musts" and "wants," including home features you would like (single-family, a condo or duplex, how many bedrooms, bathrooms, square footage), neighborhood and amenities preferences. Check your finances.
- Choose an Agent. Select a Realtor who is knowledgeable and with whom you get along and can trust. Your Realtor will be able to help you with your search and guide you through the process so the transaction goes smoothly. Barbic adds, "There are differences between a Realtor and a real estate agent. Realtors are members of the National Association of Realtors and must abide by a Code of Ethics. They are held to a higher standard of conduct than other real estate professionals."
- Choose a lender. Have your Realtor suggest at least three mortgage lenders that meet your financial needs. Based on your financials, your lender will be able to help you with the mortgage that is right for you
- Visit open houses and other homes for sale. Now that you have an agent, you can seriously view and evaluate homes for sale based on your preferences and budget.
- Make an Offer. Once you've found a home you like, review the seller's disclosure carefully. Make sure you are satisfied with all information about the property. Your Realtor can provide you with comps of homes recently sold in the area, which can help you arrive at a price for the property.
- Negotiate. Whether your offer is accepted may depend on competition with other offers placed on the home. This is where the value of your Realtor's negotiating skills will come into play.
- Have the home inspected. If your offer is accepted, hire a licensed home inspector to inspect the house. It is not advisable to buy a house "as is." An inspection protects you from buying a house that may have major issues not disclosed or undetected by the seller. Your lender will have the house appraised to make sure the purchase price is close to the appraisal.
- Close the deal. Congratulations, your offer has been accepted! Your Realtor and escrow officer will be able to help you wade through all the paperwork that will finally clinch the deal and provide you the house of your dreams.
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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