The Complete Home Buyers Handbook

Insider's Guide to Saving Money &
Eliminating Risks When Buying Your First Home!

Chapter 6: Making An Offer

By this point, you have found a real estate agent you trust, contacted a few lenders, and seen a few homes. If you haven't made up your mind on a home yet, you should take your time and keep looking. But keep in mind that if you wait too long, you may end up in a bidding war with another buyer.

Making an offer on a home is a huge step. You will be taking on the responsibility of a mortgage, repairs, lawn care, and other chores that homeowners sometimes gripe too much about.

While you should be cautious, you should also make an offer on a home that you really like within a week after seeing it. This will put your mind at ease so that you can think of all the other items you will have to get done before the closing.

What To Do Before Making An Offer

Before you make an offer on a home, you should do the following:

• Attend open houses
• Find out more about a property
• Find out about taxes in the area, and
• Have an appraisal done before making an offer

 These suggestions will help you make the most informed decision possible when it comes to buying your first home.

Attend Open Houses
 

Attend as many open houses as you can in homes that are in the area where you want to live. This will give you the opportunity to see what is out there, the going price of homes in the area, and also give you a basis of comparison when looking at other homes.

Open houses are fun because you will be able to look into every area of the home without having to worry about the homeowners and real estate agents following you around. Many times, you may even find your new home this way.

Almost every weekend in most neighborhoods, there will be an open house. Stop by and see for yourself what the homes in the area look like and what you can get for your budget.

Find Out More About A Property

If you find a home that you might want to buy, you should find out everything you can about the property first before making an offer. Visit the county clerk’s office or land records office to see how much the current homeowners paid for their land and the value of their property.

This will give you an idea of how much you should offer for the home. If the home is in an area that has seen better days, then you can make an offer that is less because when you sell the property some day, you may have to lower your price as well.

Find Out More About Taxes In The Area

As a homeowner, you will be paying yearly property taxes, local taxes, school taxes, community dues, and other taxes that could drive your household spending through the roof. Before you commit to living in a certain area, make sure you understand everything you will be paying each year.

Your real estate agent should have the neighborhood information that will help you decide where you want to move. You can also visit your local tax office and see how much the current homeowners paid in taxes last year.

Have An Appraisal Done Before Making An Offer

Most first time home buyers do not have an appraisal done until their lender asks them for one. But you are well within your rights to ask for a home appraisal before making an offer. You will not have to share the findings with anyone until your lender asks to see the appraisal. Typically appraisals are completed after the offer is accepted and the lender has reviewed it.

How To Write A Purchase Offer

This is the most important step when making an offer to buy your first home. The purchase offer should outline everything you expect from the homeowner and what they can expect from you. You should include the following in your offer:

• price being offered
• amount of deposit on the home
• amount of money you will be putting down on the home
• mortgage terms
• Contingencies (such as appliances that will stay repairs that will need to be made, removal of items in the yard, etc.)
• when closing will take place
• specify who will pay which fees
• any reports that will be needed, and

Each of these categories should be explained in its own paragraph. You should try to be as specific as possible when writing up a purchasing offer.

Each state has its own laws concerning contingency, amount of time a buyer has to respond to the offer, and fees that are to be paid. Be aware of these laws before sending your offer or you may end up with a counter offer or a rejection.

Have a lawyer or your real estate agent look over the purchase offer before sending it. They may have some advice or additional categories you should add depending on the age of the home, the neighborhood, and the laws that exist. If you make an offer that is reasonable, well written, and hard to break, then you will be on your way to buying a home.

Making An Offer

After completing your research, you will be ready to make an offer on your first home. You will have to visit your real estate agent to sign a formal agreement that will outline your offer and for how long you will be making this offer. Most agreements allow the sellers anywhere from 24 hours to three days to a week to consider the offer, depending on circumstances.

In this time, the offer may be accepted, rejected, or a counter offer will be made. You will have to decide what you will want to do next if the offer is rejected or another offer is made. If the offer is accepted, then you will have to contact your lender, a home inspector, and make arrangements for your move.

Most homes will go to closing within a month after an offer has been accepted. This may seem like a long time, but it is not. You will have plenty to do in the meantime.

Low Or High Offers

Hopefully, by researching the neighborhood, the property, and the value of the home, you will be able to come as close to the seller’s price as possible. Sometimes, though, this is not possible. There may be circumstances that may prohibit you from making an offer that is close to the selling price.

Making The Right Offer

The closer you can come to the asking price, the better off you will be. Once the home inspection is complete, the homeowners may have to come down in price anyway because of the repairs they will have to make.

Making the right decisions when buying a home are not always made quickly. You should play by the rules and just see what happens. If you get into a bidding war and cannot bid any higher, then it is best to let the home go and find another. You should not be a slave to your first home by buying one that is over your budget. There are many homes available if you keep looking.

How To Handle A Counter Offer And Offer Rejection

Sometimes, if you give homeowners an offer that is lower than their asking price, they may offer a counter offer. This is usually an offer that is more than your offer, but a little less than the asking price. 

Counter Offer
 

Depending on where you live, the laws pertaining to counter offers will vary. Typically, the number of counter offers is limitless, but no counter offer can be the same. While counter offers are usually concerning money, these offers may also contain the following:

• Ownership of appliances
• Repairs
• Time frames for closing, and
• Time frames for counter offers

Buyers and sellers may only have hours to accept, reject, or offer another counter offer after receiving one. This can be a very stressful process, especially if you are dealing with a seller that has other offers on the table. While most homeowners will reject an offer if it is too low or they have received another, some will try to get the most they can from the sale which can include the smallest items in the home.

If you are determined to buy a home, but still want a lower price after the seller has reacted with a counter offer, you can try to find a price that will suit everyone’s needs. If you are making a counter offer that does not make that much of a difference, you should weigh the odds that another offer has been made, the homeowner will reject your offer, and that time is ticking for everyone.

Try your best to accept the counter offer before making one of your own. Is it really worth losing your dream home over one or two thousand dollars?

Dealing With Rejection

The hardest part about an offer rejection is that the homeowner does not have to answer your offer. If you do not hear from the homeowner within a week, it is safe to assume they are not interested in your offer. While this can be frustrating, you will have to move on. Begin your house hunting again and try to stay positive.

If the homeowner gives you a response in the form of a rejection, they may site the reason why in the paperwork. If your offer was too low, they had another offer, decided not to sell, or want to wait for a higher offer, at least you can move on without wondering why your offer was rejected.

Considering Items In The Home

When you are writing your purchase offer, you should consider the items that you would like to keep and items you would like to have removed from the home. These items can include:

• Certain appliances (such as the washer and dryer)
• Lighting fixtures
• Storage fixtures
• Single air conditioning units that fit into windows
• Hardware from windows and doors, or
• Pools

You should put these items in writing so that you will get them with the home. Some homeowners may try taking certain items with them either because they didn’t know that you wanted them or because they were not supposed to be sold with the home to begin with. Be sure to obtain a list of items the homeowner is selling with the home so that you can compare it to your list.

This can also work in reverse. If there are items that you would like removed from the home or the property before you move in, you should specify these in the offer.

Understanding The Seller

One of the key elements of making a solid offer is having an understanding of the seller. Your real estate agent will be able to tell you a little about the seller that may help when trying to come up with a fair offer.

When deciding on an offer for the home, you should find out the following about the seller:

• How eager are they to sell their home?
• How long have they lived in the home?
• How many offers have they received?
• How many have they turned down?
• Have they lowered their asking price?
• Are they relocating to another area?
• Do they need to sell their home quickly?
• Are they waiting for their asking price?

These questions, although you may not know the answer to some of them, will help you make an offer that will be looked at by homeowners and taken seriously. Sometimes when a homeowner needs to leave the area in a certain amount of time they will lower their asking price. This could be an advantage for you, but if the homeowners have already lowered the price, they may not want to lower it any further.

Make a reasonable offer and see what happens. Depending on the circumstances, it may be accepted. 

What To Do In A Buyer’s Market

In a buyer’s market, you will have more choices when it comes to the types of homes you can purchase. Depending on how long the market favors the buyer, you will also have the luxury of taking your time because bidding wars are much less. When buying your first home, you should check out all your options. That home you couldn’t afford a few years ago may be in your price range today.

When looking for a home in a buyer’s market, you should do the following:

• Stay current with the listings in your area
• Sign up for free email listings and newsletters
• Check out homes that have recently been reduced
• When making an offer, ask for closing fees to be paid for by the seller
• See if there are other offers, such as appliances that come with the home
• Ask for certain allowances (carpeting, roofing, siding, ect.)
• Do not be afraid to offer a lower price, and
• Ask for a shorter response time

In a buyer’s market, homeowners may offer these options to you as incentive to buy their homes. They may also offer warranties on appliances that you should take advantage of.

There are dangers that you should consider when buying in a buyer’s market, however.

• If you are not planning on living in the home for more than three years, you may want to wait until the market changes or plan to live in the home longer. Many times, market trends can last for a few years. If you need to move after a year or so, you may have difficulty finding a buyer and you may have to sell the home for less than what you paid for it.

• While most homeowners stay in their homes for at least two years in order to save money in taxes, marketing trends have been known to last longer. You should be prepared for this when buying your first home.

• Make sure a thorough home inspection has been completed before buying the home. If you decide you cannot live there after you have bought the property, you may have difficulty selling it and you will have to spend more money making repairs.

Even though you cannot predict how the market will change, you should consider a home that you can afford, that you will want to live in for a long time, and one that can be improved upon while you own it. 

What To Do In A Sellers Market

In a sellers market, you will have to play the game slightly different than you would in a buyer’s market. In this type of market, there are many buyers who will want to buy homes that are attractive and priced within their budget. Homeowners will have their pick of offers to choose from so your offer will have to stand out in more than just price.

When looking for a home in a seller’s market, you should:

• Make an offer that is close to the asking price or slightly over
• Send a pre-qualification letter from your lender with the offer
• Choose a closing date that is sooner rather than later
• Do not ask for too many contingencies
• Send a personal letter
• Promise more of a down payment, and
• Use a real estate agent that gets things done quickly 

In a seller’s market, you may also want to think about the dangers of buying a home. If you make an offer that is too high and you find out later on that the mortgage payments will be a struggle, you may have to sell. Depending on changes in the market, this may be more difficult than when you were looking for a home.

Buying your first home during this time may also be difficult because you will not be able to put much down, you may only qualify for a certain amount of money which may not be enough to compete during a bidding war, and you may be out bid by those who have more experience than you do. 

When you decide to buy a home, you should be looking at your finance situation, the market, and the asking price for the homes you are interested in making an offer on.

If you can wait a few months to see where the market is headed, then maybe this is the best way to save more money and find a home that is affordable. This is a waiting game that no one wants to play, but may be necessary, especially if this is your first home purchase.

Seller’s markets and buyer’s markets have their advantages and disadvantages, but in the end, the offer that you make will determine whether your offer will be accepted.

Next:  Chapter 7 - Closing The Deal!



The Complete Home Buyers Handbook

Insider's Guide to Saving Money &

Eliminating Risks When Buying Your First Home!

Chapter 3 – Watching The Market

 

Now that you know more about finding a real estate agent, you should begin watching the housing market carefully in the weeks or months before buying your first home in order to get a feel for whether it is in your favor.

Watching The Housing Market

For the past year, the housing market has been favoring buyers. Soaring market values were short-lived as many people decided they just could not afford to live in certain areas because of the cost of housing.

This has caused many sellers to lower their prices. While this sounds like good news for you, the housing market can be very fickle.

Depending on where you want to live, you may end up having to pay a small fortune for the home of your dreams.

This is why watching the market, surveying neighborhoods, and finding a good agent will help you in your search.

While you should not become a slave to the housing market, you should keep the following in mind before buying your first home:

• The past market value of the home you are interested in buying.
• How much house your budget can get you in different neighborhoods and towns.
• Neighborhood value.
• How much the home should increase over time, and
• Price reductions that may be available.

Just because you buy a home for a great deal does not mean you will make a huge profit when it is time to sell it. The housing market will continue to change and since this is your first home, you may want to choose something you can pay off quickly and make a larger profit on in the future.

Also, remember that any improvements you make on the home will increase its overall value. Just don’t spend too much money on improvements. Creating a home improvement budget and sticking with it will help you make those monthly mortgage payments and other payments that will be due.

One of the biggest mistakes that first time homeowners can make is buying a home for a lot less than they budgeted and then making improvements that will end up costing more money in the end. If you can find a great deal on a home, use that extra money as a cushion in case you lose your job or are too ill to work.

Owning a home is a big responsibility. Knowing how the market is moving and spending your money wisely will help when you are creating a budget, applying for a mortgage, and deciding how much to put down on a home.

Making The Most Of The Housing Market

While you should be watching the housing market, there are other areas of interest you should be watching also, such as:

• National interest rates for mortgages.
• Building rates in your area.
• Number of foreclosures in your area, and
• Stock market and gasoline prices.

National Interest Rates For Mortgages

Even though the housing market may be going your way does not mean that the interest rates you could be paying are. In the times when the housing market has taken a slump, interest rates tend to rise in order to retain the natural balance within the economy.

The interest rate you receive will depend on many factors, including:

• Other loans
• Current credit score
• Credit history
• Number of credit cards
• Yearly income
• Owed debts
• Current interest rates
• Type of lender
• Time of year, and
• Adjustable and fixed rate mortgage

If you see housing prices dropping, you may opt to buy a larger home than you would have if the prices had been higher a year ago. While you will be saving money on that end, you may be paying more each month because of the interest rate you received.

Building Rates In Your Area

If you notice the housing market has also caused the building of new homes in your area to decrease, then you may have to enter into a bidding war in order to buy your first home. When new home construction goes down, this can mean one of several things:

• The area is no longer popular.
• The interest in buying a new home has diminished.
• People can no longer afford to purchase new homes.
• People are opting for older homes that are less expensive to heat and keep cool during the year.

While that housing slump may bring a reduction of housing prices, you should consider making a bid soon after finding the home of your dreams because bidding wars will only end up costing your more money.

Number Of Foreclosures In Your Area

When looking for a home, you should consider looking at homes that are under foreclosure. This can be for many reasons, but usually banks that hold the titles want to unload these homes quickly so that they do not lose more money than necessary. Many times auctions will be held or the home will be advertised as a foreclosure in the newspaper or online.

You should check out these homes because you may find exactly what you are looking for in a home.

Stock Market And Gasoline Prices

Even if you do not play the stock market game or own a car, you should still pay attention to these areas because they are usually what will dictate housing prices and the cost to heat and cool the home.

When the stock market is doing well many people will spend their money more freely, which will give way to higher housing prices. But when gasoline prices go up so will the price to heat and cool a home, which may make homebuyers reconsider buying until the prices fall again.

This could be a good time to buy a home if you are willing to pay a little more each month in utility costs.

The impact society can have on the housing market can be huge, and it can also have lasting affects. Buyer’s market’s are created when there are more homes available than buyers, while seller’s market occurs when there are more people who want to purchase homes than there are for sale. These housing markets go back and forth due to issues mentioned above.

In The End

Buy a home when you are ready. Many times, people will buy a home because it is cheaper in the long run than paying rent each month.

The downside to home ownership is that you have to make your mortgage payments on time each month. Very few lenders will give you more time to come up with the money.

If you miss even one payment, your home could be foreclosed upon. You will have no place to live and your credit score will suffer severely.

If you can afford to make the move into your new home now, you should not wait too long before making an offer. The housing market can change quickly and with competition out there, you may end up losing more money if you don’t make an offer after seeing a home that you like.

Rent To Own

Another option you may have is to buy the property you are currently renting or rent a property that also offers you the option to buy after a certain amount of time. This will give you a chance to see if you like living in the home and will give you time to get your finances in order.

Rent to own properties are usually older than other homes and have been rental properties for some time. This means that they may not be in great shape. If you are looking for a property that you don’t mind repairing, then this option may be for you.

When looking at a rent to own property, you should ask the following questions:

• How old is the home?
• How many times has it been rented out?
• What is the mortgage payment on the home?
• What is the rent per month for the home?
• How long will I have to make my decision?
• What happens if I change my mind?
• What happens if the home owner changes their mind?

You should still sign the proper contracts stating that you are interested in buying the home after the given time period. This will protect your rights and the rights of the current homeowner.

New Homes

When you think of your first home, you may be thinking of a brand new home. Since the housing market is favoring buyers at the moment, you may get a great deal from a builder that is developing a new housing community, or you may find a plot of land that is in an existing community. This can be a great alternative to buying an older home for many reasons:

• You will have a part in designing the home.
• You will have new appliances and lighting fixtures.
• You will have new carpeting and flooring.
• You will be able to choose all of the fixtures, carpeting, and flooring.
• You will be able to add a porch or a patio, and
• You will be able to place the home where you want it on your property.

A new home can be very exciting, but it can also be a lot of extra work. The first step in buying a new home is to find property. You should visit builders and real estate agents who will file all of the necessary paperwork, permits, and other items needed to build on the property. This can take a few weeks, so be sure to plan accordingly.

The next step is to design the home. This is the fun part where you will get to personalize your home to suit your needs.

Once you have been approved for a mortgage, the property has passed all of the land inspections, and the home has been designed, construction will begin. Depending on the time of year, you will have to wait about 3-6 months before you can move into your new home.

After construction is complete, you should complete a walk through of the home, check all of the fixtures, and have the home inspected before signing the final paperwork. Then the home is yours.

Many people hire a lawyer during the construction phase so that all of the paperwork has been filed and there are no problems during the walk through.

Buying a new home is just one more option you should consider when looking for your first home. Home construction can vary, as there are a few ways to build a home, including pre-fab homes that will be built elsewhere and delivered to your property where they will be assembled. Look into all of your options before deciding on a home that is right for you and your budget.

Using The Housing Market To Your Advantage

By paying attention to current housing trends and keeping a watchful eye on the homes in your area, you will be able to make an offer on a home that will be accepted.

While the market is continually changing, it is a useful tool for those who are on a budget, who want to find a home that is large enough to suit their needs, and will be worth more when it is time to sell it.

When watching the housing market, consider the following:

• The number of homes that are in your area.
• The number of days the homes have been on the market.
• The price of a new home compared to those that are being sold by homeowners.
• The price of renting vs. buying.
• The number of homes that are in your price range.
• The highest price you can pay when buying a home.
• Interest rates in comparison to housing prices, and
• The time of year.

Springtime is a good time to buy a home for several reasons:

• More people want to sell.
• It is easier to make appointments to view homes.
• Prices are usually lower.
• People are more willing to reduce their asking price.
• Income tax returns can help with a buyer’s budget.

There will be plenty of people who could not sell their homes in the fall or winter months and who are trying to sell before the summertime. Homeowners that need to sell their homes before a certain time are more willing to reduce the price of their homes.

While you should consider looking at a home during any time of the year, you will find that many homes will be lower in the spring to attract buyers.

This is also the time when interest rates are re-evaluated and many lenders are willing to give loans to those whose credit is not the best. Take advantage of when interest rates are at their lowest even if it means accepting an adjustable rate mortgage. You will have the option of locking into a fixed rate at a later time.

While the housing market can change, the idea of selling one’s home will not. Homeowners may choose to wait out the current housing market, but if they are eager to buy another home or move to a new place, their wait will be short-lived.

Negotiate with homeowners until a fair price can be reached. This is the same practice during a sellers market as in a buyers market. You may have to play the bidding game for a week or two, but in the end, it is the person who needs to make the transaction happen the most that will end up compromising the most.

Next:  Chapter 4:  Home Inspections 101
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The Complete Home Buyers Handbook

Insider's Guide to Saving Money &

Eliminating Risks When Buying Your First Home!

Chapter 2 – Finding A Realtor

If you are like many people, chances are that you’ve looked around different neighborhoods, saw a few homes that were for sale, maybe visited an open house or two, and then felt stuck.

What is the next step? Approach the homeowner with a potential offer? Visit a realtor for more information and help with the purchase?

Finding the right realtor when buying a home depends on what you are looking for in a home. You may have to visit several realtors before finding one that listens to your wants and needs.


After all, you could possibly be paying them a commission once you have found a home, so you should be comfortable working with them during the house hunting process.

Choosing A Realtor

There are a few ways to find a reliable realtor.  For example, you can:

• Ask friends and family for referrals.
• Search online for approved realtors.
• Attend a few open houses and meet realtors personally.
• Visit a local real estate office, or
• Look for local realtors in your neighborhood by paying attention to for sale signs in the neighborhood.

 

 

Asking plenty of questions before looking at houses may seem like a lot of work, but when you visit a realtor for the first time, you should think about questions that will help you get to know this person who is going to help you find your dream home.


The five best questions to ask are:

1. Are you a certified realtor?
2. How long have you been in the real estate business?
3. Which neighborhoods are you the most familiar with?
4. How many homes do you have that will fit my needs?
5. What is your typical commission on a home in my price range?

Once you have asked these questions, you should be looking for honest and complete answers, good communication, and honesty. These are questions that the realtor should have practice in answering and should not have to give you a standard ‘salesperson’ answer.

If you feel uncomfortable, remember that you are under no obligation to continue with this realtor unless they have some good property matches to show you, or have exclusive rights to show properties that you are interested in.

Normally, if a realtor does not have properties that fit what you are looking for, they will recommend you to another realtor in the group. This is also a good sign because it shows that the group is looking out for your interests and the interests of its employees.

You should also pay attention to:

• How well your realtor listens to what you are looking for.
• How well they understand current real estate law.
• How many other clients they seem to have.
• How they speak to their co workers.
• How often they communicate with you on the phone or email.

 

 

In the end, you will have to be the judge of the real estate agent. If they know what they are talking about, can find out the information you need quickly, and are willing to take the time to listen to what you need, then you should work very well with them.

In some cases, you may be asked to sign an agreement that states you will only be working with a specific real estate agency or agent when looking for a home. You are under no obligation to sign this paperwork and you should only do so if you feel very comfortable.  

While these agreements are not totally binding, it could make buying a home more difficult down the road. Only sign agreements if you feel comfortable.

During your search for a real estate agent, you will find a variety of agents that will want to work with you. These include:

• Experienced agents
• New agents
• Pushy agents
• Absentee agents, and
• Hard working agents

While all real estate agents have different personalities, you will have to decide which ones you will want to work with when looking for your new home.

Experienced Agents vs. New Agents

This is an age old debate that should be addressed. While an experienced agent may have sold more homes and earned more commissions, new agents can be just as helpful and need to get some sales under their belt, which may prompt them to work harder for you.

While you should ask about their experience, you should take into consideration other traits such as the ability to listen and the ability to only show you homes in your price range.

Experienced agents and new agents have been trained in a similar fashion and only have their personalities to bring to the table.

There are experienced agents out there who will drag their feet because they are over confident or they are not as interested in their jobs as they once were. Experienced agents may know more about different neighborhoods, but some of them are not as proactive as they used to be.

You should not let inexperience deter you when looking for an agent. Many times new agents will work harder because they want to gain a reputation that they can use to build confidence in their future clients

Pushy Agents

Unfortunately, you will meet real estate agents that will want to sell you more home than you need. In an effort to earn larger commissions or to sell those properties that are more difficult, many agents will try this tactic.

This is where you will need to stand firm. You do not want to waste your time looking at homes that are beyond your price range unless you can find a way to lower the price.

 

 

While looking at possible homes is exciting, this will not last long as you will grow weary of spending all of your available time looking for a home. If an agent keeps showing you homes that are out of your price range, then you should consider finding another agent. 

Absentee Agents

Absentee real estate agents are those agents who show you a few homes and then disappear for a few weeks. These agents may be overworked, may not be able to find a home in your price range or neighborhood, or have higher priced commissions to find. Whatever the reasons, this is unprofessional behavior and should be rectified immediately, especially if you need to find a home quickly.

If an agent does not have homes in your price range or neighborhood, they should recommend another agent in the group. Agencies never want to lose customers. If your agent does not do this, find a new one.

 

 

Even agents that are overworked have time to make a quick phone call. If you do not hear from your agent in a week after your last meeting, find another agent.

Hard Working Agents

These are the best agents to find when you are buying your first home. If you find an agent like this one, do not lose them. These are the agents that will follow every lead, pass your wants and needs to another agent, and try their best to find you a home. You should expect to see a handful of homes when working with an agent like this one.

Now that you know more about what to look for in a real estate agent, you should feel a little more comfortable about working with one. They can be an invaluable source of information when you want to know more about homes, neighborhoods, and other questions about the communities you are looking at.

When looking at homes with your real estate agent, you should ask questions about the home, the neighborhood, the city or town, and any other questions you need to know in order to make an informed decision. Part of your real estate agents job is to research homes and neighborhoods so that they can answer questions that may come up.

(Whew...where to stop on this subject! Keep reading...I promise it is informative!)

Preparing To See Homes With Your Realtor

Create A List

 

 

Once you have found a realtor you are comfortable with, you will want to make the most of your time when house hunting. Giving your realtor a list of what you are looking for will help narrow the search and save everyone some time. Your list should include:

• Your price range
• Number of bedrooms you want
• Number of bathrooms
• Size of property
• Basement (finished or unfinished)
• If you want a porch, patio or balcony
• Central heat and air conditioning
• Garage
• Neighborhood, and
• Any other amenities you would like

Giving your real estate agent a list of your preferences will allow them to spend more time researching homes that fit the criteria. You should list these amenities from greatest to least important because no home is perfect and you will not get everything you want or need. Let your agent know that you are flexible, but that you really want to concentrate on certain items when looking for a home.

Viewing Homes

When looking at homes with your agent, be sure to ask any questions you may have. While these questions may seem small, they may be important to your happiness. Common questions people ask their agents are:

• How old is the home?
• How many owners has the home had?
• What kinds of renovations have been done to the home?
• How old is the plumbing?
• How low are the sellers willing to go?
• How old is the carpeting and flooring?
• How old are the windows?

While your agent may answer some of these questions before you ask them, you should ask any questions that may influence your decision to buy a home. If you do not want to put too much work into fixing up the home, you may want to buy a home that is ten years old or less.

If your agent does not know all of the answers to your questions, they should be able to find out and will give you an answer within a day or two.

Taking Pictures

One of the best ways to remember the homes you have seen is to bring your camera and take pictures. Get permission from the agent first before taking pictures of another person’s home.

Many times, after looking at a few houses, you will forget how big the kitchen in home number two was in comparison to home number five. Having pictures will give you a better idea of the square footage and how much room you will have to work with.

Narrowing Down Your Choices

After a few weeks of viewing homes that fit what you are looking for, you should be close to finding a home that you will want to make a bid on. If you have other homes you would like to see or you have changed your mind as to what you are looking for, you should tell your agent so that they can look for other homes.

Many times, if a person likes the neighborhood but not the home they were shown, they will want to see other homes in the neighborhood that are for sale. You should ask to see all of the homes available in a neighborhood that you like.

If you are still not finding a home that you like, you may need to change the neighborhoods you are looking at. While this can seem disappointing, your real estate agent will be happy to show you homes in different neighborhoods. Sometimes if you compare homes to one another, you will find redeeming qualities in a home you have already seen.

Once you have found a home that you like, you should make an offer. Contact your agent as soon as you can so that they can draw up the paperwork, contact the buyer’s agent, and make an offer before another person does. Make an offer as soon as you can in order to avoid a bidding war.

Bidding can be long and drawn out in some cases. If you do not have the time to wait out a bid or if you cannot bid any higher, then you may be looking for another home to purchase. While this can set you back, you should try to stay positive and find a home that is right for you.

Your agent should be there to guide you along during this time. Ask all the questions you have to before making an offer on a home.

Information Realtors Should Tell You

There is plenty of information that realtors can tell you about the homes you will be viewing. Things they should tell you include:

• The price of the home
• The age of the home
• Any renovations that have been done
• Any other Issues with the home
• Property taxes
• Community dues
• Schools
• Neighborhood crime rates, and
• The median age of those who live in the neighborhood

Usually, if a realtor does not have the information you request on hand, they will be able to look it up once they are back at their office.

You should be able to find out all the information you need to know in order to make an informed decision about buying a home. Realtors are required by law to give you information concerning repairs, damage, and the history of a home.

This includes any incidents that have occurred inside the home such as criminal activity, fire, and other events.

You can also do a little research of your own by using the Internet, which has become a wonderful tool to use when searching for a home. You can research past events that have taken place in the neighborhood, the home itself, or the town where you want to live. Knowing a little history may prompt you to look elsewhere or make an offer.

Other information realtors can tell you include:

• Home owner price reduction (your realtor will talk with the seller’s realtor once you have made an offer or want to make an offer to see how low the owners will go to sell the home)
• Prices of other homes in the area that are comparable to the one you are looking into buying
• How quickly the owner wants or needs to sell their home
• How much you will have to pay in property taxes each year, on average
• Other taxes in the area

Your realtor is a person that should be well acquainted with the neighborhoods you are looking at when buying your first home. Don’t be afraid to ask many questions.

Working With Seller’s And Buyer’s Agents

As a home buyer, your real estate agent is considered the buyer’s agent. While some people will forego hiring an agent at first when looking for a home in order to save money on commission costs, they will usually end up hiring an agent to:

• Handle negotiations with sellers
• Do paperwork, and
• Survey neighborhoods

It is in your best interest to hire an agent in order to make buying a home a much easier, and faster process.

Negotiations With Sellers

Most people who sell their homes are also working with an agent. This agent is known as a seller’s agent. If you choose not to hire an agent, you will be dealing with a seller’s agent who is looking out for the home owner’s interests, and not yours.

Sometimes, though, the seller’s agent and the buyer’s agent can be the same agent. This means that your agent is looking after the interests of everyone involved. This is a rare occurrence, and it is best to hire a real estate agent that can negotiate with other agents in order to get you the best deal on a home.

Negotiating with agents can take a week or more depending on how high you are willing to go and how low the owners are willing to go. This can become a complicated game once you introduce home inspectors.

After an initial home inspection, if you feel there are repairs that should be made prior to the sale of the home, or if you want a price reduction because of the repairs you will have to make, you will have to negotiate with the owners to settle on a fair price. Without an agent, you will have to do all of this work yourself.

Paperwork

When buying a home, there is a lot of paperwork that must be completed before the closing. This paperwork can include:

• Offers
• Counteroffers
• Home inspection reports
• Home appraisal reports, and
• Fixture lists (Items that come with the home and items you would like removed)

Filing the paperwork is not difficult, but it can take some time. Working with an agent will save you time and money when creating and sending out various paperwork.

Survey Neighborhoods

Another advantage to hiring an agent is that you will not have to do as much legwork in the beginning. You may have a few neighborhoods in mind, but you will be able to leave it to your agent to find homes for sale and setting up appointments to see them.

This is another time saver especially if you have to work during the week. Taking time from your busy day to call other agents and homeowners to set up appointments will distract you from your other daily duties.

More Reasons To Hire A Real Estate Agent

There are several other reasons to hire a real estate agent.  These include:

Peace Of Mind

The bottom line is that as a buyer, a buyer’s agent is the best resource when it comes to finding and making an offer on a home. While a seller’s agent will be able to tell you the basics about a home, they are working for the homeowner.

They will not try to get you the lowest price for the home.

If you enjoy negotiating, then working with seller’s agents might be for you. But if you are like most people, hiring an agent to work on your side will make the entire process more enjoyable and worthwhile in the end.

Wealth Of Knowledge

Your agent will be very knowledgeable about negotiating the right price for your new home, they will be able to help you decide where you want to live, and they will be able to guide you in buying or walking away from any property you are not sure about. This is why it is so important to talk with your agent and ask as many questions as you can before buying a home.

Confidence

If you are having doubts about purchasing the home you have made an offer on, then you should tell your agent right away so that they can postpone the offer made and help you reexamine what it is you are looking for in a home. Many times the initial shock of being a homeowner can be overwhelming.

Sometimes talking with your agent is enough to resolve your feelings. Other times, you may need to see a few more homes before making a decision. Your agent will be able to give you practical advice during this time.

Next:   Chapter 3: Watching the Market

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