1 First-Time Buyer: 5 Tidbits

For any newcomers to the exciting yet daunting world of home buying, please keep reading. Even if you are a seasoned pro, it never hurts to get the perspective of others. The process of buying a piece of real estate, especially if you intend to make the property your home, can be simultaneously exhilarating and exhausting. If you like searching for deals, negotiating, and signing a lot of documents that don’t make sense to you, then you’re bound to enjoy a huge part of the process.

Okay, we realize that most people probably don’t love that last item, but we point that out because real estate transactions involve a lot of paperwork. If you aren’t an avid reader, this is the time to become one! Everyone should read a document that they intend to sign, but this is especially true when buying a home. There are contracts and financial commitments involved after all.

Anyway, even in the smoothest real estate transaction, an issue or two is certain to pop up at some point during the process. Some issues are easily resolvable and others may lead even the calmest individual to experience panic attacks and sleepless nights. However, if you go into the process fully armed with the right tools and information, there shouldn’t be anything you can’t handle!

1. DO YOUR RESEARCH – We cannot emphasize this enough. Research the neighborhoods that interest you. Hell, research neighborhoods that don’t interest you as you may be surprised at what you learn. Research home values in the areas that interest you. Research the surrounding location, including the neighborhood demographics, nearby amenities, schools, traffic routes, we could keep going but we won’t. Research anything and everything that is likely to impact your life if you choose to live in that location. Research financing options. Research the listing agent. Research, research, research!

2. BE REALISTIC – If you cannot afford a multi-million dollar mansion, don’t go see one. Be honest about what you can afford. Be honest about what you need. Think about what features or aspects are important to you and what you can perhaps sacrifice or realistically live without. It can be easy to become enamored with the upgrades and amenities, but if you’re living in a 100 square foot cell, is that tennis court by day, nightclub by night that is situated on the rooftop patio that you have to take 17 flights of stairs to reach and only if you have one of the secret keys that may or may not be hidden in your walls and may or may not open the door really worth it?

3. SAVE AND SEEK PRE-APPROVAL – It would be disingenuous for us to pretend that anyone and everyone can obtain financing. If you have to borrow 100% of the cost, maybe it isn’t quite the time to buy. Many lenders aren’t willing to pony up the full amount after the last housing bubble. Take the time to save a nice chunk of cash. This will make you more attractive to lenders, strengthen your offer if you can submit a handsome down-payment, and reduce your mortgage, thereby reducing your monthly mortgage payments. Once you’ve saved enough, check out the many lenders to find out what your options are and pick the best choice for your situation. It can be helpful to obtain a pre-approval letter to bolster an offer as it shows the financial ability to seal the deal.

4. FIND THE RIGHT AGENT – Good agents close deals. RE/MAX agents in particular close deals. Be sure to find an agent, preferably a RE/MAX agent, who understands you, your finances, and your goals. If your budget is $300,000 and an agent is showing you homes in the million-dollar range, it may not be the right fit. Find the agent who understands you, helps you, and works for you.

5. BE PATIENT – Obviously it is exciting when you make the decision to buy your first home. You find the perfect place and you want to move in right that second! It doesn’t work that way. Don’t rush the process. Do everything right. Remember what we said about doing your research? You want your first purchase to be the right purchase so you should invest a lot of time and thought into it.

Here at RE/MAX Paradise our first love is the Miami Beach real estate market, but our agents are experts on all things Miami, so regardless of your needs, we have the right person for you. Contact us today to get started!