Home Buyer Guide: Tips for Buying Your First Home

Home Buyer Guide

Home Buyer

I can remember when we bought our home 9 years ago. I wish I knew then what I know now. I would have saved time and I would have saved money. I did really know how to negotiate. I saw what we wanted and we had the money so we bought it. I think back to what we paid out of pocket and what we could have had rolled into the deal and I cringe. I see places in my home that I should have upgraded at the time because 8 years later they are still not upgraded. I have learned to be patient and research homes in my area. I have learned to really be careful whom I chose to represent me as a realtor. We picked someone who wasn’t from the area and I think his lack of personal relationships in our county cost us money. I believe it isn’t what you know but often whom you know. Impulse buying can bring regret and disappointment. I like our house but if I had the kitchen I wanted and the extra closet and additional bathroom then I would love it.

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Five Home Buyer Tips To Use When Negotiating For A Great Deal on a House

Not all prices are set in stone, especially these days, when many homes are on sale. The marketplace is flooded so using that your advantage is helpful. There are also more ways to buy a home. You can use the Internet to check out homes prior to visiting them. This will help you narrow down your search and hone in your best value price.

The other thing you should do is figure out what you can spend and what you should spend. I suggest you make a detailed spending list over the previous 6 months to determine how much you actually have for a house. I believe that you are the only one that knows your actual expenses. You know if your car is going to need $1000 worth of tires soon and you know if you daughter has a dance competition that will cost you hundreds. You have to determine your budget before looking at house.

It is important to take charge of financial planning for the family if you want to save up for the house of your dreams. I read this really good article on why women should take control of our financial future now. This opened up my mind on having a detailed financial goal, and to have that dream house, we need to plan that goal on how much we should save and spend for a house.

You also have to practice negotiating. If you know how to negotiate, you can find a way to lower the price on the house you want to buy. Here are five tips to use when you attempt to negotiate a deal on your next home purchase.

1. Be Willing To Negotiate
Negotiation is a nerve-wrecking exercise for many of us. However, if you are willing to take a chance and give it a try, getting a “no” is the worst that can happen. Do not be afraid to approach a seller with a new price. A little boldness can go a long way. That means that if the seller wants 300,000 for the house and you can afford the $300,000 ask for things like closing costs, repairs, and allowances for needed repairs like carpet.

2. Be Willing to Walk Away
If you find the house of your dreams and you can’t afford it you must be prepared to walk away. For many sellers, if they believe you will still buy an item at its current price, they have no incentive to lower the price for you. You must be willing to cancel the deal if they do not negotiate a lower price. That means you may have to walk away, even if it is the house you have been dreaming of all your life. If you walk away because you did not get the deal you wanted, you may very well hear from that seller a few days later or you may lose the house and it wasn’t meant to be. You can’t have what you can’t afford no matter how much you want it.

3. Talk to the Person in Charge
If you find that your realtor is not getting anywhere. Then talk to the person in charge this is your money and the house you want. You can ask to meet with the sellers and the other realtors. It is a lot harder to say “NO” to people if you haven’t met them. It will also allow you to see what it is that is causing them to say “NO Make sure when you are negotiating that you talk to someone who has the authority to change the price of the item in question.

4. Shop Around and Get Competitor’s Prices
I know that it is easy to research and find houses that are similar at lower prices. You need to ask your realtor to pull the “comps”. That way you can see places that you could negotiate and room for give and take. Information is the key to creating movement on the opposition’s side. You c

5. Be Persistent
Sometimes you may have to ask more than once when trying to get that great deal. You may have to be patient as well. If you don’t get the deal you want the first time you ask, come back later and try again. The seller may be at the point that they need to get that house off the market. I believe if you identify with the seller and do your research you should come away ahead.

The best tip I can provide a first time home buyer is to do your homework on housing prices, mortgage rates, and realtors. You need to plan effectively to have the best chance of buying the house of your dreams and be prepared to make accommodations.

According to the experts at Genworth, a loan with mortgage insurance is a safe and easy way that will allow you to buy a home years sooner, even if you have less than 20% down payment.

Conventional loans with private mortgage insurance and FHA loans both allow for low down payments. If you have a very limited down payment (less than 3%) or a low credit score, an FHA loan may be the right choice. However, a loan with mortgage insurance provides significant benefits for borrowers.

Disclosure: Information for this post is sourced from Genworth Financial in partnership with the SheHeard Influencer Network. All opinions and content of this article is mine.

Topic: Home Buyer Tips



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Comments

  1. says

    This is such a great list. We have benefited from the persistence tip. When we lived in Florida, it was common for home owners to pay closing costs. When we moved up north our real estate agent told us twice that people don’t do that up here. I asked a third time, she presented it to the people we purchased our home from, and they agreed to pay half of the closing costs, woot!
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  2. Tammy S says

    Great tips! I think the “Be Willing to Walk Away” is super important. I am the one that always tells my husband, if it’s meant to be then it will happen, if it’s not then it’s not. He on the other hand would over pay if he wants it. That’s why I don’t let him deal with the sales people. LOL

  3. Julie Wood says

    Such good tips for buying a home. My favorite tip is Be willing to walk away! If the price is too high after you figure it out, walk away and not continue to negotiate.

  4. Mary Fagans says

    I didn’t realize you could talk to the person in charge before buying the house! Wish I would have known that before!

  5. ellen beck says

    Great tips- I think one of the best ones is to know whento walk away. Houses can sit for months and the longer it sits the more motivated sellers become.

  6. Susan Smith says

    Another tip is to get pre approved by the bank. This will let you know how much of a house you qualify for and the seller will know that you are qualified to buy the house.

  7. sandy weinstein says

    not a fan of genworth, really screwed me on long term care policy. however, like your remarks abt 1st time homebuyers except i am on my 2nd and hopefully soon to be third.

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