Are you a first-time home buyer? Or haven’t purchased a home in a few years?
This is the second of our three-part series of things you should consider if you are a First-Time homebuyer or Haven't Purchased in a Few Years.
So you found the perfect home now what do you offer? The first thing you do is have your agent pull comparable sales, provide that data to you, so you can really analyze it and determine the price that you want to offer. The most important thing to remember is, don't rely the Zestimate! A Zestimate is an algorithm that doesn't take the features, the condition, the view or any of the room count or anything else into consideration. Plus it can be really far off. So rely on the comparable sales that your professional real estate agent provides to you. Now, when you're entering the inspection period after they accept your offer, you have a 10-day inspection period. During that time you can have the home inspection done, the termite inspection completed. Also, take a look at the neighborhood make sure you see it during the day and at night. You have to take a look at the sales history of the subject property too! Check for other instances, did it sell every couple of years? Maybe something's going on. Make sure you knock on the neighbors on both sides of the house and maybe behind the house. You might find out there's a dog that barks 24-7 or it backs to the freeway or the caddy corner there's a gas station or maybe it's underneath the airport traffic or air traffic. These are the type of things that could really affect your value, your enjoyment of the home and your resale when you're ready to sell that property.
There's also some things that you want to make sure that you don't do during this period. The first thing is don't go out and make any major purchases! So many people want to go out and purchase some furniture or some appliances now. Remember, that they're gonna pull that credit report a couple days before closing again and they're gonna see that you made a large purchase. When you're pre-qualified, they check out what your income is and what your debt is, your monthly payments and they have a debt income ratio. If you make a large purchase, it's gonna change that ratio and you might not be qualified any longer. Also, if you will buy something with cash, maybe you're not going to have those reserves for those little emergencies that come up at the end. They may pull another big statement and they'll see that you don't have that reserve anymore and you may no longer qualify. So make sure no major purchases until you have those keys in your hand and you're ready to walk into that house!
The last thing is make sure you're really realistic if you're buying a used home, remember it's used, it's not new, there's going to be some small imperfections. Make sure that you do have the health and safety hazards repaired but those small items probably aren't going to be repaired so make sure you're really realistic.