Potential homebuyers come from all backgrounds and with a variety of knowledge, misconceptions and misinformation. Many are afraid to begin the process because of some false information they’ve heard, such as needing a 20% down payment. Or they may procrastinate because of fear – fear of buying a “bad” house, going into debt or fear of commitment. Many hesitate because they don’t understand the process and don’t know where to begin. As with any subject you can think of, you don’t know what you don’t know.
The best thing a future homebuyer can do is to find a trusted agent to talk to. The agent will ask questions, explain the process, discuss financing, recommend a lender and represent the buyer throughout the entire process.
I’ve talked to buyers who don’t want to work with an agent because they’re afraid they’ll get “locked in” to working with someone. “All we want to do is buy a house.” But a real estate agent will represent them, counsel them, and look out for their best interests at all times. The agent will help them be the winning offer in a competitive offer situation. Remember the spring of 2022? Oh yes, that was just last year. Every house had multiple offers on it. Buyers and their agents had to work as a team to get offers accepted.
Important tips for every buyer:
- Work with a full-time, experienced agent. The agent will explain the process and required paperwork, show you homes on your schedule, give you advice and represent your interests. I recommend talking with an agent early, up to a year or two before you plan to buy. This is because there may be things you hadn’t thought about that you’ll need to take into consideration.
- Don’t go to open houses unrepresented. If you decide to buy a home you saw at the open house and you don’t have your own agent, you will be working with the listing agent. The listing agent represents the seller, not you.
- You need decent credit. The higher your credit score the better, but there are loan programs for buyers with lower scores.
- You’ll need at least a 3% down payment plus 3-4% for closing costs. There are programs for down payment and closing cost assistance.
- Buyers do not typically pay their agent’s fee directly. The buyer’s agent is usually paid at closing out of the seller’s net proceeds.
How to find a trusted agent:
- Get a referral from a friend or family member who had a great experience with their agent.
- Research agents online and read their reviews.
- Get a referral from your lender.
- Interview agents on the phone or in person to find someone who’s a good fit for you. Ask questions!
If you or someone you know (child, niece, nephew, friend, family member, co-worker) is considering purchasing a home, I would love to help! Call me anytime with your real estate and financing questions.