Do the low prices of real estate and historically low mortgage interest rates appeal to you? Do they make you feel like you should be out there finding an awesome home? Before you jump in, there are some things you should do ahead of time. 



If you watched the video, you’ll see Rob and the agent made plenty of mistakes. How can you avoid these yourself?

It’s okay to contact a real estate agent right away because they can recommend qualified mortgage lenders to help you find a loan that’s right for you, how much you can borrow (be realistic about whether that amount is what you can afford, though), and how much money you’ll need to close the loan. Remember, this might not include other fees like earnest money and home inspections. But don’t expect to go touring homes until the lender says you’re a qualified buyer.

Be realistic about how much home you can get for your price point. If you want to spend under $100,000 you might want to consider a town-home, a house with about 1,100 square feet or less, or one that needs some tender loving care! Over $120,000 will buy you a fairly standard American Dream kind of house with a garage, three bedrooms, two baths. When you start going over the $150,000 mark, the upgrades are nice or there’s more square feet (like bonus rooms). The homes can truly turn into swans once you can afford more than $200,000.

Sit down ahead of time and figure out what’s most important to you because typically homes won’t have everything you want (unless you’re over $200k! and even then there’s no guarantee). Be very clear with your real estate agent about what your needs are and how much you want to spend. If your agent makes suggestions, it’s okay to go out of your comfort zone somewhat because they may know about a real gem that’s just under or over your price range or have a lead on something that you never realized would be perfect (until you see it).

If you find something you love, write an offer. But make no mistake - just because it’s a buyer’s market doesn’t mean the seller will be willing to slash the price. While many sellers try to put in “wiggle room” a good agent won’t deviate too far from the actual market value on the list price.

And finally, what the seller paid for a home five or ten or 30 years ago has no bearing on the current value. The value is what the market says it is.

Happy house hunting!

Posted by:  Kathy Tyson

1 Response to “When You're Ready to Buy”

1. elizabeth colton walls Says:
   September 20th, 2010 at 01:15 PM Good advice, Kathy!

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