Up to this point, we’ve assembled our team (Realtor and lender), met with our agent, and got pre-approved. Next up? House hunting - every buyer’s favorite part of the house-buying process! But what many buyers may not expect is that there are strategies and best practices when conducting the home search. Not as seen on HGTV. If you want to be successful and efficient in finding your dream home, you need to be set up for success. And good news, we can help you do that! Today, we’re guiding you through how to find your dream home and make an excellent offer. Let's dive in.
Preparing for the Search.
Before we ever begin going to look at houses, there are a few things you as the homebuyer need to think through and then communicate with your agent.
Why are you moving?
Are you looking for a shorter commute? More space for your family? The "why" behind your purchasing and moving into a home is the most important thing for us as the agent to know to help us narrow in on the best next house for you. Before you begin looking for homes, establish your “why” and communicate that with your agent.
Is there a timeline?
Your agent needs to know whether there is a hard deadline you need to meet of when you need to move or if it’s more open-ended and flexible. Most buyers tend to think of the timeline as “When do I need to be in a house?” However, we also like to consider “How soon is too soon to be in a house?” When is the earliest you would want to be under contract and moving forward on buying a house? This affects when we will begin looking for houses as well.
Location, Location, Location.
The most important factor in real estate. What’s important to you in terms of your location? Commute time? City life versus the suburbs? Lot size or size of the backyard? You can change many things about a home, but you can’t change its location.
Type of Property
What type of property are you thinking you want to live in? Are you hoping for a single-family home or maybe a townhouse or condo? A major determining factor here is what level of maintenance you want to do on your home. Do you want to take care of a yard or prefer that to be maintained by a property manager?
Schools
For some families, the school district that the house is in is a very significant factor. Does it matter to you what school district your house is in? If so, how much does it matter? Is it a must-have? Determining this early on could save you time and energy in the search. Keep in mind that homes in sought-after school districts will most likely have higher property values.
Walkability and Safety
As you begin to narrow down your search to a certain area or even neighborhood, it’s always recommended to determine your level of comfort in that area. One way to do this is to check crime maps that are available online. Be sure to compare the area you are considering to where you are currently living (because there is crime everywhere) and see what the difference is. Another thing we often suggest to our buyers is to go and take a walk in the neighborhood both during the day and at night. Say hi to the neighbors and ask them how they like living there. You might be surprised at what you are able to find out!
The Common Considerations
How many bedrooms or bathrooms are you needing? What type of parking situation are you looking for? What’s the desired layout of the home? What level of updating or renovations are you comfortable with? Do you want a pool? Does it matter if it’s one story or two?
Once you’ve taken all of these things into consideration, it’s time to categorize them into “must haves” versus “nice to haves”. What criteria would be a deal breaker and what criteria would be a bonus?
On the Hunt.
Now that we have our must-haves and nice-to-haves, it's time to begin looking. Many buyers begin by looking online or attending open houses well before they are going to tour homes with their agent. And that's ok! We actually recommend it.
The Online Search
Many homebuyers begin house hunting with an online search. We like to call this “dating homes online.” This is a really helpful way to see if your house criteria in the location you want are realistic for the budget you have set. After you’ve spent a little time looking online, we may have to adjust your expectations of the timeline for finding this home or adjust your criteria. Don’t worry, we will help you tailor your search!
Open Houses
Open houses are a really easy way to go see something in person. And trust us, Realtors want you to come and check out the open house! These are especially great if you are not quite ready to seriously begin looking at homes, but still want to start determining what you like and don’t like.
Touring Homes.
Once you begin touring homes with your agent, it’s best to tour these homes with your end goal in mind. We don’t just want to know if you think it’s pretty. We want to know if it will function for you and your family on a daily basis. Can you truly envision yourself or your family living here day in and day out? Does it have everything on your must-have list? Does it accomplish the goal of making you move?
Making the Offer.
Finally, when you’ve found the home you’ve been dreaming of, it’s time to write up the offer. First, the agent will take some time to look at comps (comparable properties in the area that have recently sold) which will help determine the market value of the house and see if the asking price is appropriate. After that, the Realtor will call the listing agent and ask questions to help better know the seller’s motivations for selling, their timeline, and also see if there are any other present offers on the house. We’ll also review any paperwork like seller’s disclosures, permits, or warranties that will help us to determine an offer. We want to know as much about the house as we can before we go under contract and start paying for things.
You and your agent will determine an offer price together but the reality is that what a house is worth to you will fall within a reasonable range. That price point will depend upon your motivation, timeline, and how badly you want this house. Only you can determine where you fall on that range. Once that’s determined, we will walk through the rest of the terms of the contract and together craft the best offer based on where you are and where the seller is.
After we submit an offer, there will likely be some negotiations between the agents. Any negotiations the agents do will be specific to the situation. Once all the terms are agreed upon, then the contract gets signed and executed! You’re officially under contract and we’ve got our sights set on closing.
But don’t get too carried away yet. We’ve got the dreaded inspection and all the paperwork to get through before then. But we’ll talk you through that next time.
If you’re ready to dive into the house buying process, give us a call! We’d love to help you put these tips into practice and get started on finding your dream home.
Until next time,
Brianna and Keelie