Bruno Real Estate Advisors' Blog
Buying a house is never a simple decision. Aside from all of the financial aspects of purchasing a home, there are numerous life-related considerations you’ll need to think about. So, it comes as little surprise that diving head on into the house hunting process can be stressful and taxing to the home buyer.
With all of the different numbers to keep track of--a down payment, closing costs, credit scores, interest rates, and so on--it’s easy to get lost in the finer details of your budget. This can lead to even more stress as you try to navigate your way through getting approved for a mortgage and shopping for the perfect home.
In this article, we’re going to give you some tips on how to maintain your budget and reduce stress throughout the home buying process. That way, when you do finally find the house you’ve been waiting for, you’ll be able to move forward confidently.
Trust the process
Many first-time home buyers enter the real estate market with little knowledge or experience of how things work. Any newcomer to such a huge and complex industry is bound to be flustered with all of the different options available to them.
However, much of the home buying process is relatively standardized. Real estate agents all make roughly the same commission, lenders use similar algorithms to decide how much of a loan you’ll be approved for, and real estate contracts contain legal safeguards and contingencies to ensure that you and the seller’s interests are protected.
When shopping for a mortgage or getting pre-approved, it’s a good idea to ask friends, family, or read reviews online to find someone you know you can trust. From there, rely on the experts to lead you through the process.
Have a long-term plan
Much of the stress and anxiety around buying a home comes from the uncertainty of the future. Sitting down with your family and significant other and deciding your long-term goals for homeownership is a good way to build confidence and know that you’re making the right choice.
Determining things like location, the number of years you want to live in a home, and what priorities are the most important (school districts, neighborhood safety, etc.) will help you make that plan a reality.
Use the tools at your disposal
If you’re reading this article, you already have started to take advantage of one of the most important resources you have, the internet. Look up real estate terminology you’re unfamiliar with, read up on the different types of mortgages, and take advantage of free online calculators to create what-if scenarios to find out what you might end up paying in closing costs and interests.
It’s also a good idea to check your credit score for free online. You can check your official reports once per year, but for simple credit checks you can look it up each month for free.
Knowing that you’re in good hands with a lender and agent, that you have a basic understanding of industry terms, that you have a long-term plan, and that your finances are in order will all help set your mind at ease and give you confidence as you move forward toward homeownership.
If you’re planning on buying a new home sometime in the near future, you may be wondering when the best time of year to buy a home really is. There’s many theories about when the best time of year to buy a home is. It’s widely known that inventory on homes available for sale picks up in spring. That means that inventory increases, but so too does the volume of competition for people who are buying homes. Just because spring is busy, in real estate that doesn’t mean that it’s necessarily the best time to buy.
Spring is, however, a great time to sell your home. The same goes for the summer as the buying frenzy continues right into the fall for most home buyers. As a buyer or a seller, you’ll want to have a good understanding of the housing market no matter what time of year you’re making your property transactions. Whether you’re buying or selling, you’ll want to know how to get the best bang for your buck. While many people are ready for a change after the long winter months, yet, many people can hold out through other times of the year.
The Market Changes With The Seasons
As the seasons change, so too do the number of people selling versus the number of people who are looking to buy. If you don’t mind the competition and know what you’re looking for, any time is a good time to buy. As a buyer, you’ll either be facing low inventory, tough competition, or a combination of the two. If you’re scoping out the type of home you’d like to live in, you’ll want to browse in the spring. Have your pre-approval ready just in case you find a home you love at the right price. If you’re not in a rush, spring shopping can give you a good idea of what’s out there for you. You’ll be able to narrow down the type of home you want and where you’d like to live when the time is right.
There’s Really No Golden Rule For Timing
When it comes to buying and selling real estate, there is no sweet spot during the year as to when you’ll have better luck. Being prepared and understanding the trends in your area are a good start. When you hire the right real estate agent, they can be your advocate throughout the process of either buying or selling. Agents can research different trends from the time of year that properties are sold in a certain neighborhood right through to the correct pricing for a home just like yours or the one you are looking for.
After a home seller accepts your offer on a home, the next step usually involves a home inspection.
At this point, you'll hire a home inspector who will walk through the home you'd like to buy and offer expert insights into the residence's strengths and weaknesses. Then, you'll be able to assess potential issues with a home and determine whether to move forward with a home purchase.
A home inspection can be stressful, particularly for a first-time homebuyer. Lucky for you, we're here to help you take the guesswork out of home inspections.
Ultimately, there are many questions to consider after a home inspection is completed, including:
1. What did the home inspection reveal?
A home inspection offers unparalleled insights into a residence. It enables you to look beyond a house's surface and find out whether major repairs will be required both now and in the future.
Hiring an experienced home inspector is paramount for homebuyers. With an experienced home inspector at your disposal, you'll be better equipped than others to identify "hidden" problems within a house.
Also, don't forget to review a home inspection report closely. With this information at your disposal, you'll be able to understand whether a residence meets your expectations.
Be sure to consider the long-term value of a property as well. Remember, a home that you plan to purchase should be able to serve you well for years to come. But if you encounter myriad home issues during a property inspection, you may want to consider rescinding your offer on a residence and restarting your search for the ideal house.
2. Are there major home issues?
As a homebuyer, it is important to be able to identify the differences between major and minor home issues.
For example, if there are tiny cracks and chips in the paint on a kitchen's walls, these issues are minor. In fact, you may be able to repair such issues quickly and effortlessly.
On the other hand, an old, inefficient furnace can cause major headaches. Without a properly functioning furnace, you may struggle to heat your home in winter. Meanwhile, it may cost several thousand dollars to replace this furnace.
If you encounter problems with a residence during a home inspection, consider the costs associated with these issues. By doing so, you'll be able to determine how much you may need to spend to correct such problems and can proceed with a home purchase accordingly.
3. What should I do next?
An informed homebuyer will be equipped with the knowledge and insights needed to make a great decision.
Consider the problems that were discovered during a home inspection. If you can fix home issues without having to commit substantial time and resources to complete various home maintenance projects, you may want to consider moving forward with a home purchase.
If you encounter major home issues, you can always ask a home seller to perform home repairs. Or, you may want to remove your offer on a home altogether.
Working with a real estate agent is ideal, especially for homebuyers who want help with home seller negotiations. With assistance from a real estate agent, you should have no trouble determining how to proceed after a home inspection.
An open house can be a life-changing event for a homebuyer. If you plan ahead for an open house, you should have no trouble determining whether a residence matches or exceeds your expectations. And if the answer is "Yes," you can proceed quickly to submit a competitive offer to acquire a house.
What does it take to prep for an open house? Here are three open house preparation tips that every homebuyer needs to know.
1. Understand Your Budget
Before you attend an open house, you should find out how much money is at your disposal. Thus, you may want to meet with banks and credit unions to see if you can get pre-approved for a mortgage. That way, you can kick off your home search with a budget in hand.
Although you know that you have only a certain amount of money to spend on a residence, it may be worthwhile to consider attending open houses for residences with initial asking prices that are above your price range. Because in some instances, a home seller may be willing to accept an offer that falls below his or her initial asking price.
2. Create a List of Questions
A home is one of the biggest purchases that a person can make, and as such, it pays to be diligent. If you craft a list of questions before an open house, you can get immediate responses from the showing agent. Then, you can determine the best course of action.
When it comes to an open house, there is no such thing as a "bad" question. As a homebuyer, it is paramount to get as much information as possible about a residence to determine whether a house is right for you. Therefore, if you create a list of questions in advance, you can improve your chances of getting the most out of an open house.
3. Consult with a Real Estate Agent
If you're uncertain about how to approach an open house, you're not alone. Fortunately, real estate agents are available nationwide who are happy to teach you the ins and outs of the real estate market. By doing so, these housing market professionals will make it easy to take an informed approach to any open house, at any time.
A real estate agent will always keep you up to date about new residences as they become available. Also, if you are interested in homes in a particular city or town, a real estate agent will notify you about open houses in this area. And if you need extra help prepping for an open house, a real estate agent is happy to assist you in any way possible.
Let's not forget about the support that a real estate agent provides throughout the homebuying journey, either. A real estate agent will help you submit an offer on a house, negotiate with a seller's agent on your behalf and much more.
Be diligent as you get ready for an open house – use the aforementioned tips, and you can fully prepare for an open house.
Believe it or not, the process of buying a home can become long and complicated. And if you're not careful, you may encounter many hurdles that prevent you from acquiring your dream residence.
Lucky for you, we're here to teach you about the ins and outs of buying a house and help you simplify the process of going from homebuyer to homeowner.
Now, let's take a look at three common misconceptions associated with buying a home.
1. You will be able to acquire a house in a matter of days.
The process of locating your dream home is unlikely to happen overnight. Instead, a homebuyer usually will need to perform extensive housing market research to discover a residence that meets or exceeds his or her expectations.
Typically, a homebuyer will look at several houses before he or she can find the right residence. This homebuyer then will need to submit an offer on a house. And if a home seller accepts the homebuyer's proposal, a home inspection will need to be completed before a home purchase is finalized.
It is important to set realistic expectations for your home search. In most instances, it may take a few weeks or months to find your perfect residence. But with a diligent approach to your home search, you'll be able to discover a house that can serve you well for years to come.
2. You will be able to buy a home for less than a property's initial asking price.
Understanding the differences between a buyer's market and a seller's market is essential for a homebuyer.
In a buyer's market, many high-quality residences are available. This market usually favors homebuyers, and in many instances, enables property buyers to secure great houses at budget-friendly prices.
On the other hand, a seller's market features a shortage of first-rate properties. As a result, this market favors home sellers, and many homebuyers may compete with one another to secure the best houses.
Regardless of whether you're operating in a buyer's or seller's market, it is paramount to avoid the temptation to submit a "lowball" offer on a residence. By doing so, a homebuyer can minimize the risk of missing out on an opportunity to acquire his or her perfect residence.
3. You can find your dream home without help from a real estate agent.
When it comes to buying a house, the early bird catches the worm. Therefore, an informed, persistent homebuyer is more likely than others to locate a terrific home at an affordable price.
Ultimately, working with a real estate agent is ideal. With a real estate agent at your side, you can receive expert assistance throughout the homebuying journey.
A real estate agent will set up home showings, keep you up to date about new houses as they become available and much more. He or she also will respond to your homebuying questions and ensure you can acquire a stellar home in no time at all.
Take the guesswork out of buying a house – collaborate with a real estate agent, and you can make your homeownership dreams come true.