Thinking about buying your first home?   by Marion Mark

Develop a budget that works for your lifestyle.  When considering expenses, you would want to buy the most house that you can afford for the daily comfort and enjoyment of it without limiting your ability to cover your normal daily and monthly expenses including emergency reserves. Once you have that figure in mind, it’s time to contact a lender, and without any obligation, request to be pre-qualified for a loan. This is an opportunity to gain an initial insight on what programs might be best for you – 30 year fixed, adjustable rate or interest only, FHA, VA or conventional along with the maximum loan amount you would be eligible for in order to develop a price range for your initial home search.

How to get THE home at THE price.

First, analyze your needs and desires for your home purchase. Evaluate MUST haves versus preferences. Enlist the assistance of a Real Estate professional at any point during this or the above stage of your home purchase efforts. Be clear in distinguishing preferences and minimum features. The Internet is a vast resource for both you and your Real Estate Agent. Each public on-line listing may vary in how many photos are provided per listing and in the property details provided. Your Real Estate agent can offer added insights about your choices by providing you comparable market data, access to all of the listed properties – no matter whos listing it, and technical assistance throughout the process from home selection, through the offer and negotiation process, inspections, to the closing table and beyond. Consider your constraints for convenience and comfort with regards to the distance you are willing to travel for your daily demands – employment, education, shopping and pleasure. What conditions can you and your family tolerate versus the more home that can purchased with alternative locations?

Once you've selected THE home of your choice, the negotiation process begins with evaluating: the conditions of your offer, the asking price, the market conditions, the seller’s concerns and your ability to be competitive with other buyers while maximizing your position. Market value is often far away from what the Seller paid for the home. Market conditions impact price more than even the Seller’s urgency to sell.  Think more competitively for more unique or sought after home choices to ensure success. Ask your Real Estate Agent for competitive tools and techniques for multiple offer situations if the more than your offer is being considered by the Seller. For example, an Escalatory Addendum is a document which allows increases in the initial offer amount if and only if another offer, that’s higher, has also been received. The Buyer commits to an incremental increase with a cap requiring written verification of the higher offer if used.

Avoid Common Buyer Mistakes

Getting things right the first time can save you time, money, and aggravation.

A good contract offer agreement is critical. Whether it’s the standard contract that your agent’s association uses which has been developed by a team of real estate attorneys or through a private real estate attorney. Protect yourself with a quality document. Protections for both Buyer and Seller should be standard language in the offer agreement. A good faith binder is also to be expected with any offer.

Use professionals for every aspect of the process. Whether its property valuation, inspections or contractual agreements – seek professional assistance to establish clear and fair criteria, confirm value and scrutinize the condition of the structure. A home inspection, a wood destroying organism inspection, a survey and appraisal are all important steps in the process of purchasing a home.  If a problem is indicated as a result of the home inspection, further, more extensive inspections may be called for from plumbing and A/C concerns to structural engineering issues – the investment up front prior to closing may save you from years of aggravation.