House hunting - Buying and Selling Houses

The single most important rule in looking for a home

While many important details must be considered in choosing your first home - style, size, price, location - one thing is certain: if you will be moving again in a few years, be sure you buy with selling in mind. Chances are, the items that make your new home a comfortable fit for you will also attract buyers later on.

Some special considerations for the first-time homeowner who has resale in mind:

§ Watch for growth potential
Look for an established neighborhood that will be enhanced by future growth but not inconvenienced by it.

§ Look out for resale value
Seek a prime neighborhood where homes sell well in any market.

§ Check out location
Consider availability of all aspects of transportation; even those you may not use.

§ Research Area Schools
Check for quality public schools, whether or not you have school-age children.

§ Go for the green
Look carefully at the lot for trees and greenery to buffer winter winds or summer heat.

§ Make room for visitors
See if ample guest parking is available for you and your neighbors.

§ Ponder privacy issues
Consider how much privacy the home and lot provide.

§ Drive the commute before you buy
Check morning and afternoon drive time to work, schools, shopping, churches.


The best first step in home buying

Before you start looking at homes for sale, be sure you do some "homework." Here are some of the questions for which you'll need answers:

· Check out interest rates What are current local mortgage interest rates for 15-year and 30-year fixed rate mortgages, and for 1-, 3- and 5-year adjustable rate mortgages?

· Shop for the best loan Which type of loan is best for you? Will you be in the house several years and benefit most from a long-term fixed rate, or do you want a lower, short-term rate because you plan to move soon or expect your income to increase rapidly over the next few years?

· Determine how much house you can afford How much of a mortgage can you qualify for? The loan amount plus your down payment tells you how much house you can afford.

· Investigate neighborhood prices What neighborhoods feature homes in your price range?

· Separate needs from wants What are your priorities for your next home? How important are public transportation, community facilities, on-street parking, lot size, privacy? How many bedrooms and baths will you need? Will you need a space for a home office? How important are quality neighborhood schools?


Chances are you can answer a couple of these questions on your own, but you may need some assistance with the others. If you do, please call or e-mail us. We can make sure you have the preliminary house-hunting information you need.

Step 2
Who represents whom in the home-buying process

Your purchase offer looks good to the sellers. They are ready to accept it, but you are using a buyer's agent (also called buyer's broker). You know that sellers pay their agent, but what about yours?


What is a buyers agent?
A buyer's agent is retained by a buyer to look out for the buyer's interests and to negotiate the best price from the buyer's point of view. Just as the agent who lists the seller's home owes the seller complete loyalty, the buyer's agent owes the buyer the same degree of loyalty.


Who pays the fee of the buyers agent?
Sellers generally indicate on the listing agreement whether the seller is willing to pay the buyer's agent. Most sellers choose to work with a broker who splits the commission with a buyer's agent even though that agent does not represent the seller's interests. This, of course, maximizes the number of potential buyers for the home. Because the listing broker is already prepared to share the commission with a seller's agent who produces a buyer, most sellers don't mind when their broker, instead, shares the commission with a buyer's agent.


What are some tips every home buyer should know to get started?

If you think it's about time you bought a home instead of renting, a little homework before you start looking will increase your odds of finding the best buy for you. Here's how:

Dig up your down payment
Know where your down payment cash will come from. If it's coming from stocks, go ahead and sell them. If Aunt Jessie is loaning the money, get it in hand so you are ready to go.

Nail down your financing
It's tough to home shop if you don't know what you can afford. Together with a reputable lender, we can help you determine how much home you can afford and which loan program will maximize your buying power. By getting pre-approved for a loan, you'll be a better prospect in the seller's eyes.

Take your time
Don't jump at the first home you see. Let us introduce you to different areas and home types to see what suits your needs the best.

Do your homework
Once you've found the home you want, ask us to run a competitive market analysis of other homes that have recently sold, so you'll be able to make a sensible offer to purchase.

Enjoy!
With expert assistance and a positive attitude, home shopping can be fun and rewarding.