Nothing compares to buying your first home! Finally, you are in control of your space and you can make it just as you want it to be, inside and out. Not to mention, you’ve made a great first investment. As a homeowner, you will now receive significant tax benefits, and when the real estate market goes up your equity position will increase. However, navigating a home purchase is tricky for first-time buyers these days. It’s a seller’s market, so buyers are at a disadvantage from the get-go. But, don’t be discouraged. With preparation and good counsel, you can buy smart, even in a competitive market.
Following the below steps will help you feel successful in the purchase of your first home:
1) Buy with your resale in mind.
2) Finance your home considering the possibility of challenging financial times during your ownership.
3) Employ real estate counsel independent of the Realtor who represents the seller.
Buy with resale in mind
It is not likely that your first home will be your last. If your first home purchase is a smart one, you set yourself up for success in resale and for the purchase of your second home. First, you must buy a home that is desirable to the largest pool of possible buyers. Even if you can overlook potentially undesirable characteristics of your home, the next buyer may not. In fact, many buyers will eliminate a home from their search due to a challenge that you overlooked. For example, a busy street front may not be an issue for you because your family spends most of their time in the back yard. This is not the case for every buyer. In fact, a typical buyer will locate a home on a mapping program prior to visiting it and eliminate the home based on its proximity to the busy street before scheduling a viewing. Fewer viewings result in a lower sales price, so it’s important to consider all the potential pitfalls of your home from another buyer’s perspective.
Finance your home for hard times
It’s also important to finance your new home considering you may not always be able to afford your mortgage. With the right lender, you will have the opportunity to structure a loan that offers maximum opportunity and minimum liability if you need money to spend on unforeseen future expenses. Consider paying more upfront to procure a lower interest rate over time. A lender who tailors your lending program to match your needs and potential life hurdles is critical to buying smart in real estate.
Hire your own agent
The last critical piece to your success will be in hiring an advocate who is different from the home’s listing agent. The listing agent has been hired by the seller to procure the highest price and best terms available for them, not for you. Seek out a buyer’s agent who can be your advocate in the transaction.
First-Time Buyer Bus Tour
Following the above steps will help you be a better buyer in every real estate market, especially the current seller’s market in Eugene. You can further fortify your buying power at Marcia Edwards’ upcoming event!
Prepare yourself to buy smart by attending Marcia’s First Time Buyer Bus Tour from 8:30 a.m. to 12:30 p.m. on Nov. 11. Your registration will include a tour of four Eugene and Springfield area homes at first-time buyer price points ($225-324K), a first-time buyer toolkit, a boxed lunch from Hole in the Wall BBQ, and presentations by leading area experts on home-buying, financing options, locating a home, price negotiations, property inspections and more. Tickets are only $12 per person and may be purchased at www.myhomebuyerbus.com. Sign up to reserve your seat today!