Finding Your Dream Home
Most of us have a wish list for our dream home, but with so many options on the market, it can be hard to narrow down the search. Asking yourself a few key questions will help you to get started on determining what kind of house is right for you.
- Do I want a newer home or an older one?
- What location works best?
- What size house do I really need?
- What special features am I looking for?
- Do I want a single-family home, a condo, or a multi-family home?
These are just a few of the initial questions you will ponder, of course, but the point is to think about your needs, your wishes and how much you can afford. It's also helpful to be pre-approved for a mortgage before you shop. Spending a few minutes to go through Norcom's pre-approval process will let you know – before you start house shopping – exactly how much you can afford.
Working with a Realtor
Okay, so now you're ready to shop seriously for a new home. How do you find homes in your price range? You can look in the newspaper, search through online listings and check out local homes with "For Sale" signs in your neighborhood.
You can also work with a licensed Realtor. A Realtor is a real estate professional who is a member of the National Association of REALTORS®. Realtors are required to follow the NAR's Code of Ethics. Why is this a good idea?
- A Realtor can give you valuable and objective information about the homes that you are considering including details about the properties, the communities, zoning, schools and more.
- A Realtor can be an invaluable resource in negotiating the terms of the sale. Your real estate agent can work on your behalf to hammer out the purchase price, discuss any repairs that might need to be made before the sale, determine whether certain features and/or equipment are included or excluded from the sale and so on. Having an experienced advocate working for you can help to make sure that nothing important is overlooked in the sale. Realtors also eliminate the stress of personally negotiating with the seller by acting as a liaison.
- A Realtor can help you find an inspector who will examine the home in detail and prepare an "Engineer's Report" that will tell you about any potential problems with the home before you purchase it. Your real estate agent can also help you to arrange any tests (i.e. radon, termites, etc.) that may be required.
- Your real estate agent will join you for a final "walk through" before you close on the property, just to make sure that everything is as you expect it to be.
If you need help finding a Realtor, our home mortgage specialists would be happy to assist. We have longstanding working relationships with many, many real estate professionals and can provide you with an agent who will guide you to properties that are right for you, and look out for your interests throughout the buying process.
Making An Offer on a House
Once you've narrowed down your choices and settled on "the one," it's time to submit your offer. How do you decide how much to offer? There are several criteria you should consider:
- What's the market value of the home? How does the asking price compare with similar homes in the area?
- What's going on with the current owners? Are they anxious to sell? Have they contracted to buy another home and have a tight deadline? These kinds of circumstances can sometimes work in your favor.
- How long has the house been on the market?
- Has the seller already reduced the price?
- Are there comparable properties that have recently sold, and at what price?
Again, a Realtor can be an invaluable resource in determining a fair price for the home you wish to buy and in framing your offer. Once you're ready, your real estate agent can help you draw up an offer that typically includes:
- The price and terms you're offering
- The amount of your deposit (called "earnest money")
- A legal description of the property
- Your down payment and how the rest of the purchase price will be financed
- Any items that you and the seller have agreed will "convey" or stay with the house when you buy it
- A closing date and when you expect to take occupancy
- How long your offer will be valid
- Any contingencies (additional conditions that must be satisfied, e.g. home inspection or mortgage approval) before the contract is valid
Once your offer is submitted, it's up to the seller. The seller can accept your offer, reject it, or make a counter offer. If the seller rejects your offer, you have to decide whether you want to make a new offer. The negotiation can be a back-and-forth process until you both agree on a purchase price and terms of sale. Your real estate agent can be of great help throughout this negotiating process.
Once your offer has been accepted and your mortgage application is in, you're only a couple of steps away from getting your new home!