ResalesTips for First-Time Buyers: Part II
While the Internet has proven to be an invaluable tool for any first-time
homebuyer, the wealth of information posted on the Net can cause a new
buyer stress. The Web has countless sites that target new buyers, and all
of them claim to offer the most accurate data. And what about e-mail? It"s
both a blessing and a curse. E-mail is a fantastic medium, of course, for
Realtors and their clients, although it can never replace the value of
face-to-face communication. Where e-mail becomes problematic for new buyers
is when it creates an information glut. Consumers who have been surfing the
Net for information about homebuying may unwittingly find themselves placed
into large databases for e-mail. These victims of "spamming" arrive home
each night to as many as 50, 60 or more ads in their Inbox. And while some
of them advertise legitimate businesses, just as many of them don"t.
The bottom line is that new homebuyers are deluged in a sea of information.
Some of this information is presented in alarming terms, making it seem as
if new buyers are up against considerable odds, and behind every corner
during the real estate transaction is a disaster waiting to strike, not the
least of which is mortgage-induced financial doom. Perhaps it"s little
wonder, then, that many professionals in their late 20s and early 30s are a
bit hesitant about buying, even if their finances would allow it. What is
unquestionably a complex process seems that much more daunting thanks to
this information glut. Which questions is a new buyer supposed to ask? What
elements are critical in a residential real estate transaction? How does a
buyer protect his or her own best interests?
Continuing our list of first-time buyer tips ...
5. One of the best lines of defense you"ll have during the real estate
transaction is a trusted Realtor. Sounds simplistic, and yet, it"s so
vital to ensuring that your interests are protected. Like any other field,
loyalty to one"s friends is often expected in real estate, and falling
victim to that burden can cost you. Consider this chapter pulled from my
own homebuying storybook: When choosing a Realtor, I had the option of
selecting 1) an acquaintance with 15 years of experience and an outstanding
reputation, and whose services a colleague had used and praised
wholeheartedly; or 2) a close friend who just eight weeks before made the
decision to pursue a career change and become a Realtor. I chose Number 1,
and it cost me Number 2. But when you"re a first-time buyer preparing to
make the most significant financial commitment of your life, you"d better
make sure you"ve got a Number 1 on your side to guide you through the
process.
Aside from just finding yourself an experienced Realtor, you need to find
one who"s familiar with the area(s) in which you"re looking to move. Anyone
can pull up the MLS, but only a Realtor brings you the perspective of
whether those asking prices are reasonable given the surrounding
neighborhood, answers your questions about taxes, local school districts,
etc., and provides you with exposure to neighborhoods you may not have even
considered. Considering the complexity of this transaction -- particularly
for a first-time buyer -- it"s scary to even consider buying a home without
an experienced Realtor standing behind you.
6. A question you need to ask yourself is what you absolutely must have in
a home, what you"d like to have and what you can do without (but, of
course, it would be nice if the home had those amenities). You"re probably
going to find that as you get into your home search, that list of "must
haves" is going to shrink. Nevertheless, you"ll help yourself and your
Realtor save considerable time in the home-search process, so that the both
of you can spend more time looking at homes that present real potential.
It"s a good idea to have a discussion with your Realtor about your lists,
too. Although you may not have written "extra bedroom" on your "must-have"
list, your Realtor will probably advise you to choose a home, if it"s
financially feasible for you, that has at least two bedrooms -- mainly for
resale purposes. So your Realtor can help provide you with some perspective
on that list, which you may want to reorganize after your discussion.
7. Know What You Need And What You"ll Concede. What is essential to one homebuyer may be of no value to another. Creating
"need-to-have" and "nice-to-have" lists can be helpful. Your first
"need-to-have" list may be very different from your final version; still,
it serves as a starting point for you to discuss and decide upon those
features that are the absolute essentials. For instance, public
transportation to shopping areas might be a "need-to-have" if you do not
own a car, while it is another person"s "nice-to-have." If someone in your
family is disabled, a one-level home with wheel chair access may be a
necessary feature. However, you may decide that adding a customized ramp
after the home purchase is more cost effective. Identifying what you want
and what you need helps your real estate agent pinpoint your ideal home.
8. If you don"t understand the mortgage process, by all means, ask for help
both from your Realtor and your loan officer. If you"re a first-time buyer,
"mortgage-ese" is going to sound like Greek to you, and while it"s
sometimes difficult to admit your lost, the sooner you ask for help with
translation to English, the better. Once your loan has been approved,
closing soon follows, and you"re going to want to keep those lines of
communication open among yourself, your Realtor and your loan officer
during that process. It"s complex, it"s expensive, and you have a right to
know what you"re signing -- even if the title company representative is
flying through your closing (you"re probably one of many clients that day).
Don"t be afraid to ask questions before, during and after the closing. Rest
assured that your questions are ones your Realtor and loan officer have
heard before and are quite used to answering.
The average first-timer will have more questions than the ones raised
during this article and its preceding piece, but this gives you a good
starting point for moving forward with your transaction. The best insurance
you have is to align yourself with a Realtor in whom you trust your future.
If they have an excellent reputation and seasoned experience in your
market, he or she will have the connections you need to complete the your
transaction, and will stand by you during and after the homebuying process.
When it comes to homebuying, it is, indeed, a jungle out there. You don"t
need to be paralyzed with fear, but you do need to find yourself the proper
Realtor and demand the answers you"re seeking. It will make the difference
between a positive first-time purchase and one filled with regret.
See Part I Top Tips for First-Time Buyers