If you’re planning to buy a house, the more you know the better decision you can make. Whether you’re a first-time home buyer or you’ve done this before, the decision to buy a house isn’t one you should take lightly. Instead, make sure you’re very clear on what you’re doing, so you can get the best possible deal. From the location to the interest rate, it all matters and it’s all important. Overall, you have to be sure that you aren’t paying too much, and that the house you buy is one you can love for a very long time. Here’s how to buy a house like a real estate insider.
Decide where you want to buy.
Consider where you’re buying, and take a look at the prices there so you know how much you’ll need to spend on your house. What you can comfortably spend matters, and it’s important to see if you can get into the neighborhood you want for that price point. If you can’t, you want to find that out before you spend much time looking at homes to buy. Insiders know what they can afford, and they don’t waste their time on places they might like if they know they can’t get them. They want to love the house they purchase, but they’re also realistic. Be honest about where you want to buy and where you can buy, and take your search from there.
Study the local market.
Market conditions can change a lot, and often on fairly short notice. Real estate insiders are aware of that, and they pay very close attention to the market. If you aren’t sure whether buyers or sellers have the advantage, it’s time to learn more about the market in your area. Don’t trust the national averages and statistics, as they can be very different than what’s really taking place in your little corner of the world. Understanding your local market is key to buying like an insider and getting the very best deal.
Utilize your connections.
If you know people in real estate, construction, appraising, inspecting, or even the home insurance field, you’ll be able to get some good information from them. That way you’ll be more likely to understand market fluctuations, price points, and why some of the neighborhoods you’re looking into just aren’t good choices. Sometimes things seem very different on the surface, but you need to dig a little bit deeper to get the big picture.
Find the right real estate agent.
Insiders have good agents. Not only do they have a lot of knowledge on their own, but they make it a point to work with agents who also have a lot of knowledge. You want to find an agent like that. Ideally, you need someone who has been in the business for years, and who has lived in that area all or most of their life. They know more about real estate there because they’ve been there. They may have even grown up there, and learned so much about the area before they ever became a real estate agent. The information they have will be very valuable in your home search.
Find a house that matches your needs.
To truly buy a house like an insider, you need to know about the house. You want one that gives you space, comfort, and quality at a good price, and that meets your needs. A home that doesn’t do those things isn’t going to be right for you, even if it’s priced well or in a good location. Remember, though, that the one thing that can’t really be changed about the house is its location. Almost everything else can be adjusted. That’s why agents say that location matters so much, and why they often suggest that you look past cosmetic issues. The color of the walls, flooring, or countertops just isn’t as important as the quality of the neighborhood.
Optimize timing for good interest rates.
As you look for a house and learn about the market, make sure you’re paying attention to what interest rates are doing. A good real estate insider knows that they should buy when the rates are as low as possible. It becomes a gamble, though, because rates that are falling may stop doing so at any moment. They may even start to rise again. The key is to buy at a very low rate of interest, but you may end up paying a higher rate if you wait too long, hoping the rates will fall again. That’s where knowledge of the market and a good agent can really help you, because you’ll have enough information to make an informed decision that you’re comfortable with.
Seek preapproval for a mortgage.
Be sure to add a mortgage preapproval to your home buyer checklist. You don’t want to try to buy a house without it. Some sellers don’t even want to see an offer from your agent unless there’s a preapproval letter attached to it. That’s important to be aware of, and one of the mistakes that can give away the fact that you’re not an insider. Always get your preapproval letter, and then go looking for houses and contacting agents. You’ll be better prepared, the agent will know that you’re serious, and when you find the house you want the seller will see that you’re serious about the property. That may help you get a better deal.
2 Point Highlight
If you’re planning to buy a house, the more you know the better decision you can make.
Understanding your local market is key to buying like an insider and getting the very best deal.
