As a part time real estate agent, I wanted to share some tips and advice for potential buyers. It is a very good time to buy a home at this time, but buying a home can be stressful and is a major purchase for most people.  Here are some important steps and details to understand when looking for a home to buy.

1. Always work with professionals – If you are buying a home, get yourself an experienced real estate agent who has extensive knowledge of your area of interest.  The agent representing the buyer splits commission with the seller’s agent so he/she will not cost you anything anyway.  It is true that you could try to do the transaction without the agent and negotiate for a lower price, claiming they don’t need to pay the portion of the buyer’s agent’s commision, but the seller’s agent will need to take a hit in commission.  Also, this is not a wise tactic for first-time homebuyers since they are inexperienced and need the advice of the real estate agent.

2. Shop around for the best mortgage rate & understand all your financing options – Everytime I walk into a local bank and look at the mortgage rates, I cringe.  Not only are the rates much higher, but they also make you pay points (pay percentage points of the loan upfront to lower the rate).  Make sure to look around for the best rates.  Another post will come with more details about this.

3. Be organized – Be very organized with your paperwork.  You will need to provide a ton of information for your mortgage provider so make sure to have all your personal financial information in order.

4. Don’t buy a house you can’t afford – This is a simple concept and is self explanatory.  Make sure you still have savings after you place your downpayment and don’t buy a house that that requires monthly payments that are too much for your salary.

5. Value the property correctly – The worst feeling is to realize that you paid too much for a property. There are a few ways to value a property.  Make sure you do your homework and find a price for the property that you are comfortable with.  Do not rely on the list price as an indicator or the value of the property.  Here is a previous post about how to value a property.

6. Ask the right questions – When you go to see a property, there are plenty of questions you should be asking.  Some questions can help you negotiate better and some will give you more information on the condition of the property. Another post will follow with some examples of good questions to ask.