So, you are ready to take that plunge and buy a house. You have saved up your down payment, you are pre-approved for that loan, and you are ready to start looking at houses. If you are like some homebuyers, you have probably got some idea of the styles and features that you would like.
However, looking at houses can be an overwhelming prospect and completely confuse you. There are so many on the market. How do you know that you are choosing the right house for you and your family?
Over the years, I have picked up some strategies to help the families I work with to help them streamline their search; that way, they don’t waste time looking at homes that are not right for them. Here are some tips to get you started on that same streamlined path:
- Figure out your maximum monthly payment.
Just because you were approved for a certain amount does not mean that you should buy a house at that price. You want to consider your other expenses, your lifestyle and spending habits, and any future plans such as starting a family or retirement.
These are all expenses and factors that lenders do not take into account when offering you a range. People who take the time to figure this out rarely waste their time looking at houses out of their true price range, and end up with comfortable monthly payments that allow them to maintain the lifestyle that they enjoy. This saves my time and yours—a win-win situation.
- Wants vs. needs
Next, figure out what you need, vs. what you want. You may need a two-car garage, but a three-car garage would be nice for extra storage. You need three bedrooms, but an extra guest room would be nice. Basically, by figuring out what you need, you will know what your minimum requirements are. Then prioritize your wants. I will be showing you houses that have all of your needs with as many wants as possible within your price range.
- Checklists – exterior and interior
I advise clients to create two checklists, one for the exterior and one for the interior. Exterior features might include landscaping, size of yard, driveway, or outdoor lighting. Interior features would include things like number of rooms, size, condition of walls, floors, etc. Make sure you include all of your needs and wants on each checklist, and fill one out for each house you are considering.
- Photos
I advise buyers to take photos of houses they like. Nowadays this is easy since most people have cameras in their phones. Start with a photo of the exterior, and then take pictures of any features you particularly like in each house, so you can refer back to them later.
- Second opinion
If you like a house, bring back a trusted friend or relative to look at it with you. Buying a home is an emotional process, and an impartial third-party can often help you spot flaws that you’d missed before.
- Review your checklist
Review each house you like against your checklist. Make sure that it is within your budget and that it has all of your needs. Then, compare how many of your wants each house has. This can help you to narrow it down to two or three strong contenders.
- Stay on top of new listings
Your real estate agent should be doing this for you. Whenever a new house is listed that is in your budget, has all of your needs and several of your wants, you should get an appointment to see it as soon as possible.
- Look for potential
If a house has all of your needs and most of your wants, but has cosmetic issues that are easily fixable, try to look past them. With a few changes, this could be your dream house.
This article was provided by Allison Klein of http://allisonkleinhomes.com/.
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