Shopping for a new home can be an emotional experience. However, let’s not forget it is also a business transaction, and must be treated as such. Basically, there are three devastating things that can go wrong:
- Paying too much
- Losing a dream home to another buyer
- Buying the wrong home
To be sure you avoid these costly errors, you need a systematic plan before you shop. Here are some tips on making the most of your next home purchase:
Get the information you need
What price should you offer a seller? Is the seller asking too much? Is it a deal? Your own research is important, as is the assistance of a Realtor®. Your professional Realtor® can give you an unbiased opinion of on the value of a home, based on many factors and a great deal of information. Without the knowledge of the current market, your offer could be too much. Or worse, you could miss out on a great buying opportunity by not making an offer in a timely fashion. Hire the right person and trust that person to represent your interests.
Buy YOUR idea of home
What do you need and want in a home? You must have a clear picture of your needs and bringing an objective view to home shopping leaves you in a much better position. Be sure to evaluate how much space you really need? Too small and you may feel like you live in constant clutter. Too big and maintenance may become too daunting. Set your priorities down on paper, and work on finding not just a great home, but a great home for you.
Check the title carefully
Before you sign any document, be sure the property you are considering is free of all encumbrances. Title insurance certainly alleviates some of the risk of unknown encumbrances. Be sure you are using a well respected title company. As a part of his or her services, a Realtor® can supply you with a copy of the title to ensure there are no liens, debts, undisclosed owners, leases or easements against the title.
Updating the survey could be required
Before the purchase is completed, an updated survey is required in some states. Your Realtor® can guide you with this requirement. This report will indicate boundaries and structural changes (additions to the house, a new swimming pool, neighbor’s new fence which is extending a boundary line, etc.), and will guarantee that you are indeed getting what you pay for.
Always get a Home Inspection
For $300 – $500, a professional inspector will conduct a thorough inspection of the home. A home inspector’s expertise can mean the difference between uncovering major flaws before or after you own a home. The contract should be made subject to the report’s findings.
It only takes a few days to get financing pre-approval and establish a lender relationship. When you are shopping for a home, this gives you more power. A seller is more likely to consider an offer from a serious buyer who supplies his pre-approval letter with his offer.
There are additional costs
Besides the funds for the purchase of a home, you’ll need funds for items such as loan fees, insurance, legal fees, surveys, inspections, etc. Many times closing costs are an item that can be negotiated in the contract, however, there are still additional fees and inspections that will necessarily be paid out of pocket.
Take a deep breath
Before you sign, ensure that all documentation clearly reflects your understanding and conditions of the transaction. Ask questions. Your Realtor® will guide you through understanding the various documents, but you should ask for further clarification if something isn’t clear. Has anything been forgotten? Don’t rush. You could lose money, financing, or even the sale if you attempt to push things through too hastily.
Your Advocate in the Greater Nashville Real Estate Market
We help our clients understand the ever changing real estate market with the goal in mind of making informed, forward thinking choices. Whether you’re ready to buy in the Greater Nashville area or you’re thinking of selling, The Linda Seaton Team is your real estate advocate! Give us a call to discuss your real estate needs or even easier – just drop us a note right here.
The Linda Seaton Team – Your Advocate in a Changing Market
Linda – 615.478.9977