The process of buying your first home can be exciting and overwhelming. There are a couple things you should look into before making an expensive purchase, and to help with that, here are The Sivel Groupâs top-5 tips for first-time homebuyers.
Patience
Now you may think patience is a bit obvious, but low inventory market conditions, are another result of living thru a pandemic. With real estate trends like these, it's easy to become a bit disheartened with the process and have a panicked need to look around with different realtors and websites etc., but that isn't the answer. Finding your new home takes a lot of patience. There is no magic realtor with a super secret listing hidden in their pocket, but being patient and sticking to one resource will make for the least stressful path to finding your new home. Having one realtor looking out for you and focusing on your parameters will allow you to achieve your goals during this challenging time, but it doesn't happen overnight.
Always Get A Home Inspection
Buying your first home is a fantastic milestone; with that being said, it only makes sense to have your house professionally inspected. Bill Loden, the president of the American Society of Home Inspectors, did a study showing about 10% of recently sold homes that weren't inspected were bought by people trying to cut costs. And while that's not a bad thing, properties that don't get checked are very likely to cost you thousands of dollars in the future. Getting an inspection is relatively inexpensive, and it helps with more than just peace of mind or uncovering safety issues. It can help you with renegotiating the price, negotiating seller repairs, and it can even provide an out if you changed your mind about buying that house.
Weigh your loans/Programs
Becoming a first-time homeowner comes with many choices that youâre going to have to make soon, especially weighing your many loan options. There are several different types of mortgages outside of conventional and F.H.A. loans.V.A. loan:Â This loan helps U.S. veterans, active-duty service members, and widowed military spouses buy a home.USDA loan:Â This loan allows the borrower to finance 100% of its value. Purchase with $0 down. Other loan programs require 5-20% down.Fannie and Freddie:Â This loan is a Government Sponsored Enterprise heavily involved in the U.S.'s housing market. Through the G.S.E.'s, the U.S. government is directly involved housing finance system.State first-time homebuyer program:Â These programs are a form of financial assistance for buyers that usually match specific income limitations and have solid credit scores.Home renovation loan:Â This loan is for buyers that wish to renovate their home.Good Neighbor Next Door:Â Prices for homes are discounted for first responders and educators.Dollar Homes:Â Homes that are foreclosed on by the government.With so many options out there, it can be challenging to know how each would influence you in the long run, but looking into one of these resources may help lower your mortgage or help you snag a home that checks all your boxes.
Negotiating Seller Repairs
As noted earlier, getting an inspection allows you the opportunity to request repairs for defects found at the property. Many first-time buyers are scared away from a house after the inspection because they see repairs and think, "This will cost too much to fix." So, we say why not ask the seller to fix it? There is a chance that the seller will say no, especially when it comes to cosmetic issues, minor water damage, and generally anything not essential. On the other hand, requesting repairs for termite damage, wildlife infestation, and significant defects such as a leaking roof are valid requests. Now you may be wondering something like, "What if the seller doesn't do an adequate job with the repairs?" Well, no worries, you can try to negotiate a dollar amount with the seller as a concession and manage the repair yourself. That way, you can then take these funds to fix the damage and make the repairs/modifications yourself.
Choosing the Right Home
The allure of homeownership is powerful, especially when you find a home that checks all of your boxes. Having said that, it can be equally disappointing if it didn't fit into your budget. This frustration is common among first-time homeowners, and according to a report by Harvard researchers in 2017, 1 in 3 renters and buyers overpay for their housing. That figure represents about 39 million Americans. Nonetheless, let's create a scenario: Say you found a house with all the features you wanted, but it's above your budget, but the second house is around your budget or lower. If this is the case, try to look past the property's features because you can find another house and renovate it later. When looking at a house, look at the neighborhood. Ask questions like what's the crime rate there? Is there any public transportation? What's within walking distance? And is there a town hall meeting I can attend? Because you can renovate any home to have the features you want, but you can't change what's around it.
The Take-Away
Buying your first home is a huge milestone and a large financial commitment, and it's our hope that these tips help you get the most out of this experience. This overview should help you realize that there are many options to choose from when buying a house and giving you something to think about when looking at your future home. When it's done, you'll have the confidence that comes from successfully negotiating a significant step in your life.















