5. Always Get an Appraisal

 

After applying for a mortgage (we’ll talk about offers in a second), your prospective new home needs to be appraised. Essentially, a qualified appraiser will assess the following;

• Square footage
• Condition
• Location
• Renovations
• Amenities

 

Once they’ve got a full picture, they will give the home a value. If this value is different to the amount offered, you may be able to get a second appraisal, appeal the initial appraisal, and/or go back to negotiations with the seller.

 

6. Make a Considered Offer

 

What about the offer process itself? There are three main points of conversation with your agent:

• Earnest Money Deposit - In order to show sellers that your interest is strong, Earnest Money will be required (usually 1-3% of the selling price) to be deposited into an escrow account. Of course, you need to understand the risks of doing this.

• Market Price - What’s an acceptable offer price? Your agent will answer this after considering comparable homes, the location, market dynamics, and your own budget.

• Contingencies - How do certain provisions protect buyers and how do they work with a sale? Is the transaction subject to the property passing an appraisal and/or inspection? Make sure you understand the security of your deposit and what will affect this security.

 

Before signing anything, make sure you understand the financial implications fully; always ask your agent any questions you have before making decisions too.

 

7. Hire A Home Inspector

 

Rather than simply reading a report at the end, join the home inspector as they walk around your prospective new home, ask questions, and gauge their reactions and responses. Do issues have simple fixes? How is the plumbing, structure, roofing, electrics, etc? How is the overall safety and functionality of the home?

 

 

 

8. Be Patient

 

You’re excited, we understand. However, this doesn’t mean you should make plans or even spend money until the deal has been confirmed. These days, in-person closing meetings are rare, but you still aren’t the owner of the home until the paperwork is signed and the keys are in your possession. Even if you do happen to meet with the seller to confirm the agreement, don’t make statements that will end up ruining the deal; don’t even talk about how you plan to gut the property or buy all new furniture.

 

 

With this said, you now have eight brilliant secrets that will hopefully help on your journey to becoming a homeowner. Of all, perhaps the final tip is the best because it applies to the whole process. Be patient; don’t make rash decisions, don’t buy the wrong home just because you’re eager, take your time and find a home you and your family will love for many years!